Car Loans & Credit Unions

[Kaelee]

Jurisdiction

Washington

I've recently fallen behind on my vehicle loans. I currently have two loans, one that is not even 30 days behind and one that is 64 days behind. I have made payment arrangements for X amount of dollars to be made every Friday, until my loans are back in good standings. Lately my bank has been freezing my account ( only allowing me to deposit my checks and transfer the agreed amount to the loans )

For example- it's Thursday night, I just deposited my paycheck and they have locked my account, even though the payments aren't due until tomorrow. How can my Credit Union freeze my funds if the payment arrangement, payment isn't due until tomorrow? This is making it impossible for me to do pretty much anything.... I do not understand how they can freeze funds when I have made arrangements and haven't defaulted on said arrangements. Is there any legal recourse here or am I screwed until my loans are back on track? Any help would be greatly appreciated.

 

[adjusterjack]

How can my Credit Union freeze my funds if the payment arrangement, payment isn't due until tomorrow?

The how is explained by the did.

Besides, there is likely a provision in your account holders agreement (the one you didn't read when you first opened the account) that allows it.

Is there any legal recourse here

No.

am I screwed until my loans are back on track?

Yes.

One solution is to stop depositing your paychecks now that you know this is going to happen.

 

[mightymoose]

Open a new account at another bank or cash your checks somewhere for a fee.
If you do this be careful that you do not miss any payments.

 

[zddoodah]

Are your vehicle loans through your credit union?

 

[Zigner]

Just a minor note - and it's not specifically relevant to your question - a credit union is not a "bank". The rules are often somewhat different.