Nervous about checking, savings, mortage, and car loan all being held by one bank. (Wells Fargo, pay)

[MR77]

I did not intentionally set out for it to be this way, but it turns out that my mortgage, car loan, checking account, and savings account are all handled by Wells Fargo. I heard somewhere that this is not good because if I were to fall behind on one of these loans, they can move money out of my checking or savings account without my permission or even a judgment to satisfy a past due balance.

Does anyone know if this is true? I do not plan on defaulting, but I still do not like the idea of them being able to take control of my money. I'm considering opening new checking and savings accounts with a local bank, but it is just a hassle changing all my bill pay accounts and stuff like direct deposit.

[yayamyers]

It is true. I had a car loan with Navy Fed and my checking was trough them too. Once i fell behind on the car pmt. and they took it right out. I was behind like 2 pmts. though.

[johnrex62]

Anytime you have a loan in default the lender can take appropriate steps to secure payment. If they already have a deposit account of yours in their custody it is just that much easier. Even if they did not have your deposit account, in some states they can get a judgment and attach it at whatever institution it resides at.

So, you might find your savings tapped for payments at Bank of America when your loan is at Wells Fargo if your state permits such attachments. Generally either situation would require a court order of lien to allow the garnishment of your account. It is not a thing you wake up one morning and find has occurred with no warning unless you are one of those few amazingly incredibly stupid people walking around.

In the case yayameyers described, it sounds like he had language in his loan specifying his deposit account as a guarantee for the loan. In those cases, you have already granted permission for them to tap the account so no judgement of lien is required.