Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Can they withdraw money from my bank account?

My student loans recently defaulted. My state taxes were withheld but i received my federal refund direct deposited in my account. Can the loan company withdraw money from my bank account? I am very worried about this. I have called to make payment arrangements but thats it. Anyone had this happen to them?

Answer Question
 
Anonymous

Asked by Anonymous at 12:25 PM on Feb. 4, 2010 in Money & Work

Answers (9)
  • I believe they have to get a court order to do so. Kind of like child support, they can garnish wages, tax returns and any income you have available. If you've made payment arrangements then I don't understand why they took your state taxes unless you made the payment arrangements after they took your taxes. Check your loan agreement, it should specifically state what happens if you default on the loan. Good luck! :)
    CinderAmethyst

    Answer by CinderAmethyst at 12:31 PM on Feb. 4, 2010

  • They used to be able to. I'm not sure anymore but call the Federal Trade Commission and ask (or go to their site).
    admckenzie

    Answer by admckenzie at 12:33 PM on Feb. 4, 2010

  • nope, it's illegal.
    Anonymous

    Answer by Anonymous at 12:40 PM on Feb. 4, 2010

  • they have to take you to court and get a court order.
    sati769leigh

    Answer by sati769leigh at 12:40 PM on Feb. 4, 2010

  • Okay, Thank you ladies.
    Anonymous

    Answer by Anonymous at 12:45 PM on Feb. 4, 2010

  • No. That is theft. Unless you have made specific arrangements for them to take it out of your account they cannot do so. They need a court order, and even then the court would order then you pay them.
    JazzlikeMraz

    Answer by JazzlikeMraz at 12:57 PM on Feb. 4, 2010

  • They'd have to put a lean against your account. There's a process for it.
    Anonymous

    Answer by Anonymous at 1:38 PM on Feb. 4, 2010

  • If you get a court order regarding the default, then yes. But it will more likely be taken from your paycheck as wage garnishment.
    elleinad

    Answer by elleinad at 1:39 PM on Feb. 4, 2010

  • STOPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP!!!!!!!!!!!!!!!!!!

    If they are Federal Student Loans they CAN garnish your wages, put a lien on you house, car, AND take money from your checking and/or savings accounts WITHOUT taking you to court.

    The only times they can do this is with federal student loans or with taxes owed. Every other time they have to take you to court.

    Sorry that the rest of these people are giving you crap information.

    When you do get a check your best bet is to not deposit it. Don't even go to your regular bank to cash it. Go some where that charges a small fee to cash it. Keep in mind that you do need to work out a plan to repay your student loans as soon as possible because this isn't going away.

    Again the above people don't know what they are talking about.
    Anonymous

    Answer by Anonymous at 5:34 PM on Feb. 4, 2010

Join CafeMom now to contribute your answer and become part of our community. It's free and takes just a minute.
close Join now to connect to
other members!
Connect with Facebook or Sign Up Using Email

Already Joined? LOG IN