Have I violated my mom's Financial P of A if I have taken out a secured loan using her savings?

Asked almost 2 years ago - Fort Worth, TX

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I am on her bank account where that money sits and was already on said account months before I took out the loan.

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  1. Contributor Level 14

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    Lawyer agrees

    Answered August 24, 2011 12:57. If the money is yours, then I don't see much problem with you using it as collateral for a loan. But, that doesn't sound like what has happened. Bear in mind that there are several ways to hold a bank account, but many agents under a Power of Attorney are named on the account for convenience purposes.

    Assuming that the money belongs to your mother, the next issue is whether or not your mother authorized you to use her property as collateral. If so, then you haven't got much to worry about. But if your mother has not authorized you to act, or worse, if she doesn't know at all, you've made a pretty serious error in judgment. That's a situation that I sincerely hope you aren't in, and I'd be cautious about how much of the facts of this case you elect to share publicly.

    This answer does not constitute legal advice. I am admitted to practice law in the State of Texas only, and make... more

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