can a bank do this?

Hmmm.... I work in Recovery (Bad Debt collections) and we are able to seize bank accounts but we have to have a judgement first. Because this was thru the same bank I dont know if they have to have a judgement but I would suspect that if you were on the loan they have a case...... However, I would think that you could escalte this thru the bank -- Call the corporate head qtrs if you have to......You could hire an attorney but I suspect your best bet is to go after your ex not the bank.....

Being a co-signer on a car note also means that if the car is repo'd, the lender "must" send the co-signer all of the required notices of the repo in a legally timely manner.

If they failed to provide you with the notices, you are not responsible for the debt.

If you did not sign the "back" of the contract when you co-signed, you may not be responsible for the debt.

If the vehicle was repo'd and sold, creating the deficiency, more than 4 years ago, the collecting SOL would have expired.

If a lawsuit was filed and you were named but not served, you might be able to have it vacated for improper service

If a lawsuit was filed "after" the collecting SOL had expired and you were named but not served, you may also be able to have it vacated for being a time barred debt

If a lawsuit was filed and you were not named, you are not responsible.

Repo's void the original contract so it would no longer fall under a written agreement but under the UCC for a 4 year SOL.

If the lender had sent you all of the required notices, you had signed the back of the contract, if is still within SOL, or a suit was filed and you were served but failed to respond - you would be responsible.

Then it could be legal for them to grab the funds in your account.

If any of the "not responsibles" that I listed pertain to you, you might speak with an attorney about getting your money back.

edit+++

Steven F you are mistaken. You should read the UCC, specifically article 9, before you make claims that creditors do not have to provide co-signers with the required repo notices (also contained in states RISA and MVISA statutes)

The UCC gives co-signers the same protection they give the primary signers - BOTH parties MUST receive ALL of the required repo notices.

I am assuming the car loan was with Bank of America. As a co-signer on the auto loan, you are legally obligated to pay the deficiency on the loan. Even if the divorce decree states your ex-wife is responsible, that is NOT binding on the bank. When you opened the bank account, you should have received a booklet called "Terms and Conditions". A standard clause in those terms says something to the effect that any funds in their possession can be used to pay any amount you may owe them for other accounts. In layman's terms, that means the can do exactly what they did.

Unfortunately, the answer above mine is wrong. Creditors do not have to inform co-signers of anything unless they are suing the co-signer.

Yes, you're the co-signer and you owe the debt.

Ouch! Yes, they can do that, sadly. They should have warned you though, and given you a chance to put it right.

Wow! This seems extreme. Had you received notices about the loan?

yes it can i had the same thing happen to me

fraid so! tough lesson to learn!

no i don't think so enless they have a good reason