Do loan departmants have the authority to take money out of your checking account if you owe money to them?

Ok so the loan department took money out of my checking account about 700 dollars that i couldnt spare.


Well i wanted to know is it illegal for the loan department to take money out of my checking account if i owe them money for three loans?


Well some of my friends say its not and im undecided.


Were going to my bank tommorow to straighten this out but i needed to know some information to back my theory up.


By the way i live in Georgia.


Thanks!

Do loan departmants have the authority to take money out of your checking account if you owe money to them?
call a local lawyer
Reply:Do you mean the loan department of the same bank where you have your checking account, or do you mean some completely unrelated loan company?





In the first case, yes, they do, and I'm sure it says so in the documents that you signed when you got the loan(s) with them.





In the second case, I believe the loan company would have to get a court order before the bank would give them funds out of your checking account. You would have received a legal notice from the court if this were the case.
Reply:Many of them do. It's normally called a judgement. If you have a judgement against you, they have the ability through the courts to garnish your wages or accounts. The other consideration would be to look over your paperwork and make sure they didn't sqeeze in something like"if you have failed to pay timely, we will direct withdrawl from the checking account you pay us with"
Reply:Not only can your bank but if you give a loan company your routing # you can't stop them from taking it out even if you try to close the account. So never give anyone the #'s to take money electronically out of you accounts.
Reply:Regardless of the state you're in YES it is legal...however the company is legally obligated to inform you in writting what they did...and it doens't have to be beforehand!!