My question involves collection proceedings in the State of: New Jersey
I recently moved and fell behind on a few payments on a Wachovia Private Student Loan. My parents (cosigners on the loan) have a bank account with Wachovia; so, wachovia used the 'accelerated clause' on the loan contract to 'offset' my parents' checking and savings accounts for about $25K, with no heads-up, no court date, no judgment, nothing. When we called Wachovia, they said that upon opening a checking account with Wachovia, my parents agreed to allow wachovia to 'dip into' their checking and savings accounts for any loan amounts owed.
The odd thing is that I was working with a representative who gave me a deadline to setup payment by the 27th of November. My parents (not I) received a bill from wachovia yesterday for $2,700 overdue amount. Along with that bill, my parents received another letter notifying them of the 'account offset.' The letters were actually received after wachovia took the $25K from my parents' account. My dad literally had a minor heart attack (being chronically ill), discovering that his life savings were gone, and wachovia refused to pay them back.
Upon calling several Wachovia departments (including legal) and offering to pay them the past-due amount and to setup automatic payments from my bank account, the Wachovia reps all said "There's absolutely no way that this money will be returned to your father's account, no matter what offer you bring."
Isn't there some kind of law against this? Is there some way I can get my parents' money back? Do I have a chance in court?
I read that even garnished bank accounts or wages have limitations. It floors me that the bank can simply take my cosigner's money like that without ever taking me to court, or even giving me a heads-up!

