Can the bank that you holds your mortgage take the payment out of your account without authorization?

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Can the bank that you holds your mortgage take the payment out of your account without authorization?

My payment was 7 days past the grace period. The banker took out payment without talking to me first. When I called I was told that because I didn’t get paid again until 02/11 that I needed to make payment now as I would not have any money to make payment until the next payday. Also, in previous conversations and e-mails Iwas told that maybe I should eat out less and that I should get a different vehicle that gets better gas mileage. The banker checks my checking account and makes assumptions and plans a budget for me. I didn’t know if she has the right to go through my personal information.

Asked on January 28, 2011 under Real Estate Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

1) Whether the bank can take the money out of your account if you don't pay the mortgage on time is dependent entirely on your loan, account, and other agreements with the bank. It is legal and not uncommon, when you have a loan and an account with the same bank, for the agreement(s) to say that if the payment on the loan is late, the money may be debited from your account. Check the paperwork and/or ask the banker to point to the terms or provisions allowing this. If you signed anything allowing this, they can do it.

2) It is probably inappropriate for the banker to offer you life advice, but if your account was properly open in front of her because she was reviewing it, it's not clear you'd have a legal cause of action (though you could complain to higher management). You may wish to also consider--regardless of whether her advice was proper or not--whether she has a point. Even people who are rude and nosy can be right, and if the these "facts" pop out at someone looking at your account, it's possible you could reduce some costs.


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 AttorneyPages.com 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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