credit union confiscated my debit card 7 years after bankruptcy discharged

[Tad]

My bankruptcy was discharged 7 years ago and yesterday, my credit union cancelled my debit card. They said if I pay back the debt that was discharged, I can have my card back. Is this common and is it legal?

[LadyInTheRed]

It sounds like an attempt to collect a discharged debt to me. It is one thing to say that your BK disqualifies you from having a debit card if that is in fact their policy. But, to hold a debit card hostage to try to get you to pay disharged debt is a clear violation of the permanent injunction against attempts to collect a discharged debt. Did they say it in writing? If not, it will be hard to prove. But, it can't hurt to consult with a bankruptcy attorney about the possibility of filing a complaint against the CU.

[switch625]

My impression is that CUs don't treat BK debtors very well. My CU car loan and a personal loan were paid off through the BK. I was only late once (30 days) on the car loan and late several times on the personal pre-BK, yet they closed my checking account.

[krielly]

I don't think the cancellation of the card is uncommon for a CU if they suffered a loss. It's typically in your membership agreement. The uncommon thing here is that it took so long for them to do it.

[LadyInTheRed]

They can cancel the card becuase of the BK if that is their policy. It is not unusual to cancel a debit card because of credit issues. But to say that they will return it if you pay the discharged debt is an attempt to collect a debt, in my lay person opinion.