From demands to a lawsuit for collection~how long?

[kenshirley]

Sorry, I have had a little experience with the law. If they take money without a court order I sue. It's that simple.
And when I bought the RV I was not even with this bank so there is no possibility I could have an agreement and not know about it.
I just picked them when I changed.
And they really don't want to make me mad. I tend to get even.

[jribe]

The ones who had money taken did not think they had agreed either, but in their loan agreement was some wording in the fine print - something like "right of offset" (I am not sure - maybe someone else can help here) - anyway, it gave the bank the right to take money from any accounts they had at the same bank as the loan. I hope you are right. Wish I could remember who had this happen - LAJazz I think was one - not sure who the others were.

I work for a major bank (won't say who- not everyone likes the "big" banks lol). Most often they do have a "right to offset" clause in their contracts. So basically if you owe them money on a loan, they have the right to take the delinquent payments from your account with them. They don't have to wait for a court order to do that. So in my opinion, you're better off going to another bank. good luck!

[albacore44]

Its called a "cross collateralization clause"

Heard of that. but I thought it was mainly only used by credit unions to cross collaterize secured debt to unsecured (auto loans/CC etc) had not heard the regular banks were doing that, at least i hope not.

[jeb]

I have 5 CC's - one with BofA - and one line of credit with BofA.

I stopped making payments the first of Dec. 2 days after the line of credit came due they called. Have called twice more since then. Have not heard from any of the others or the BA CC. - jb

[okiemom2008]

Close your bank accounts. Try to get the payors of your pensions and SS to send you paper checks and cash them. Pay your bills with money orders. Once you file and get discharged open the bank account again.

If you do that how do you have proof of where money goes? Do you have to keep every single thing written down?

[momof3b1g]

If you do that how do you have proof of where money goes? Do you have to keep every single thing written down?

Keep receipts, from the money orders and from stores. Right down things you do not have a receipt for.

[kenshirley]

Once again, I was not doing business with my current bank at all when I got the RV loan. I did not transfer my accounts to this bank until some 8 months later.
And I sign nothing without reading it completely. It really frustrates the lenders when I do that, but that's tough.
If I see anything I don't like, the deal is off.
So how could I have a cross anything agreement with my current bank?

[2Bshinyandnew]

That is part of what I am worried about.
I had an RV that we turned in a few months ago to the same bank that I have my accounts with.
I have no credit card accounts with them however.
Too the best of my knowledge at this point they have not sold the unit so maybe I don't have anything to worry about yet.
That's just one of the points I will talk over with the attorney next week.

The bolded statement you made above is what alerted the other posters to be concerned for you about possible "cross collateralization" and "right of offset"

Sorry, I have had a little experience with the law. If they take money without a court order I sue. It's that simple.
And when I bought the RV I was not even with this bank so there is no possibility I could have an agreement and not know about it.
I just picked them when I changed.
And they really don't want to make me mad. I tend to get even.

Then you are in the clear, nothing to worry about.

Once again, I was not doing business with my current bank at all when I got the RV loan. I did not transfer my accounts to this bank until some 8 months later.
And I sign nothing without reading it completely. It really frustrates the lenders when I do that, but that's tough.
If I see anything I don't like, the deal is off.
So how could I have a cross anything agreement with my current bank?

If you read the loan documents as well as the terms of your checking/savings accounts closely as you claim to have, you should be fine. The previous poster's concerns were because you said your RV loan is with the same bank as your checking account. Whether the checking accounts were opened before, during or after after the RV loan probably does not matter as far as cross collateralization or right of offset, what matters is the fine print in BOTH your loan agreement AND your checking/savings account terms. As long as you have read both and are sure, then the only remedy the RV creditor has is to sue, so you have some time.