Banks are going out of business, what if you have a loan with them?

Once a bank has been taken over by the FDIC, all assets and accounts are frozen. Depositors can withdraw their money but loans are handled differently.

The FDIC will continue to take payments and deposits. At some time, another bank will tank over once the FDIC gives approval.

So to be on the safe side, keep making the payments and have receipts just in case.

Hope this answers your question.

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RE Banks are going out of business, what if you have a loan with them?

In Washington DC alone a lot of banks are going out of business. What happens if you have an auto loan with them? Do you still have to pay them?

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RE:Banks are going out of business, what if you have a loan with them?

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RE:Banks are going out of business, what if you have a loan with them?

Your debt will be bought by another bank and you'll continue paying your note to a new bank.

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Well if the bank were to be taken over, then your debt would be with the new owner snce all assets are transferred.

you were hoping that you don’t have to pay it back? Sorry, government ( FDIC) will take over and you still have to pay the loan back.

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