Can bank raise my interest rate?

[GIn]

My bank gave me a better interest rate on my car loan because my checking account was tied to the loan and I approved auto payments out of my account. If I file, I'll be discharging a credit card from that same bank. I'll be doing a ride through on the auto loans. Does the bank have the right to close my checking account because I filed BK? And if they do so, are they allowed to raise the interest rate on my loan because it is no longer tied to the checking account that they closed?

[AngelinaCat]

You need to dig out your loan paperwork and read the 'fine mice-type print' that almost no one reads. That will give you the terms and conditions of your loan. If you have paperwork regarding your checking account read that too.

The bank may or may not close your account. A credit union almost always will, because a credit union is "owned by the members", and if one member defaults or declares bankruptcy, it is considered harmful to the rest of the members.

Your bank may also require you to reaffirm the auto loan--others do not as long as you keep your payments on time and in full. Is this a big-named mega-bank? Or is it a local bank? Sometimes the small locally owne banks are friendlier to deal with.

I hope this has helped. Good luck!

[justbroke]

If this is a credit union, I'd be wary of the ability to do a ride through and for it not to affect anything. As posted, credit unions are member owned and they must be tough... to send a message to other members.