What canI do if an automatic loan payment was withdrawn before the agreed upon date?
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What canI do if an automatic loan payment was withdrawn before the agreed upon date?
I am recorded talking to a student loan company regarding a student loan through the student loan division. We agreed on a payment being automatically withdrew on the 21st of each month. They took the money out on the 17th and I am left with $8.00. There is a reason I set the date for the 21st.
Asked on February 17, 2011 under Bankruptcy Law, Alaska
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
You could technically bring a legal action--sue them--for the breach of contract. However, you can only sue for what your damages were, which means the amount you were injured. Since they were entitled to the payment, that means you could only sue for any overdraft fees, bounced check charges, etc. incurred as a result.
You may also require them to, going forward, take out the money on the agreed-upon date. If necessary, you could even sue for a court order forching them to do this. They need to honor their agreement; the problem is that if they balk for some reason, there really is no good mechanism other than taking legal action.
Perhaps instead of automatic withdrawals, you should arrange to just write them a monthly check, which will give you more control over timing.
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