Can your bank freeze you checking account due to a late payment of a car loan through them?

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Can your bank freeze you checking account due to a late payment of a car loan through them?

I am behind in my car payment, half of it is 30 days late and the bank froze my checking account which has the direct deposit of my pay in it of less than $100.

Asked on December 6, 2011 under Bankruptcy Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether or not the bank from which you obtained the loan for the car that you bought can freeze your bank account for lack of payment depends upon what the loan agreement that you have with it says. As such, you need to carefully read it in that it sets forth your obligations and duties to the lender and vice versa in the absence of conflicting state law.

If the bank froze your checking account due to the late payment of a car loan, most likely it can do so. I suggest that you speak with the branch manager of your bank who made the loan.


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