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Loren, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 33074
Experience:  30 years experience in general legal matters.
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My bank, without my permission, deducted from account a sum

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My bank, without my permission, deducted from account a sum of money they said I owed to another bank they purchased. I was given no notification of any kind. Is this legal?
Thank you for using JustAnswer. I am JudgeLaw and I will do whatever I can to answer your question and provide you excellent service.

I am sorry to hear of your dilemma.   I realize how frustrating this is for you and I hope to provide you information which is accurate and useful, even though it may not be the news you were hoping to get.

When your bank purchased the other bank, they also purchased its assets and liabilities.

If that other obligation became an obligation to your bank (as a successor in interest), then it would be as if you owed the money to your current bank.

In such a case the account agreement (which you sign when you open an account and is available for examination from your bank) would control. All the agreements I have seen allow the bank to deduct from your account for fees or obligations owed the bank. If this is a loan obligation, it would also have to be allowed in the loan agreement, as well.

You can file a complaint with commonwealth bank regulators if you believe this deduction did not fall within the types of deductions allowed in your account agreement. They will investigate for you.

I am sorry. I realize this is not the answer you were hoping for. As a professional, however, I am sometimes placed in the position of having to deliver news which is not favorable to a customer's position, but accurately reflects their position under the law. I hate it, but it happens and I ask that you not penalize me for having to deliver less than favorable news.

It is my privilege to assist you. Let me know if you need further information.  I hope I have helped you beyond your expectations in the service I have provided to you.  I am here for you.

Please remember to rate my answer when our communication is completed so I will be compensated for my time in providing you with the information you requested.

If you feel the need to provide a low rating, please stop and reply to me via the REPLY button with whatever issue or clarification you may need. I will happily answer your follow-up questions and assist you until I am able to explain the answer to your satisfaction. Please also remember that I cannot control whether the law is favorable to your situation, so please do not penalize me for having to deliver bad news.

Thank you.

Loren and 2 other Consumer Protection Law Specialists are ready to help you
Thank you for your positive rating of my service to you. Let me know if you need more help or have future questions. I will be here for you. Just ask for me by name at the start of your question - "JudgeLaw" or use the following link (which you can bookmark in your browser):

Best wishes and good luck to you.

If it is not too much trouble, Rod, when you receive a Customer Satisfaction Survey from JA/Pearl in a day or two, please do rate me highly (9 or 10). It affects my ability to continue to assist you and other customers on JA/Pearl and would be most appreciated.
Customer: replied 3 years ago.

VA has a 5 year statute of limitaton for the collection of a debt.

Thank you, Rod, for following up.

The statute of limitation would only bar the collection through lawsuit. If the loan agreement allowed for summary collection through lender accounts (a pledged account, for example), that would not, necessarily, bar the collection.

If this was regarding a debt which was, otherwise, time barred from collection then you would need to file suit against the bank.

Thank you.

Loren and 2 other Consumer Protection Law Specialists are ready to help you

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