Can a checking/savings account be depleted due to a past due student loan?

UPDATED: Sep 11, 2012

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UPDATED: Sep 11, 2012Fact Checked

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Can a checking/savings account be depleted due to a past due student loan?

I had a student loan with a bank. They sent it to collections. Years later, I opened checking/savings account with same bank. Loan is still delinquent. Can they take funds from my current account to pay loan off?

Asked on September 11, 2012 under Bankruptcy Law, Oregon


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

It depends on the agreement(s) between you and the bank, such as any agreement(s) governing your account with the bank; it is not uncommon for banking agreements to allow the bank to take money out of your account for any debts owed the bank. You should review these agreements, though it may also be a good idea to not bank at a bank which you owe money.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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