How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 117367
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
Type Your Legal Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

My mother had a car loan and a checking account at the same

Customer Question

My mother had a car loan and a checking account at the same credit union. I was listed as POD on her checking account (we are in South Dakota). The bank is telling me that they can't release the funds until the car sells, and then I'm only entitled to the difference of the sale price and loan balance.
My question is: Is the bank supposed to release that money now or are they able to hold it as they described?
Submitted: 2 years ago.
Category: Legal
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You need to get a copy of the loan documents to make sure, but when a credit union makes a loan to a member that loan is tied to their credit union account. Thus, if the loan is tied to the account, they can demand a payoff on the car before releasing the account and that is perfectly legal for them to do.
You need to seek to either buy the car or sell it off, so you can pay off the loan to get the car released if the loan is tied to the account.