she told the bank that but they didn't care. Why should they? Their business is making money, not caring.
Can this happen? , Sure, happens all the time to those who can't pay their bills, it's how the real world works.
Is there anything that can be done? Sometimes you can work things out, like payment plans and such.
Why didnt they give her a grace period or something? They don't have to, no law requiring them to or any such thing.