Originally Posted by arg

That's how I understand it generally too, but perhaps the bank set up some a weird structure that combines a checking account with a loan account, the way you can have a credit card tied your checking account. Otherwise I don't see how they can directly tie an overdraft/debt in a savings/checking account to an independent auto loan. They want their money, and could go through the courts to take whatever is needed to recoup the money, from whomever is on the overdrafted account, but it sounds like they're talking about seizing the automobile immediately.