Credit union line of credit taking from savings account

[mindyandy420]

I have closed my checking account with my credit union this is where I have a line of credit. Well I forgot that I have a saving account there (0 balance) and they took the money from that account. So now it shows -172. WHAT? The line of credit is in my BK but does this mean I owe the money they took in my savings -172? This happened 2 days after I filed BK?

[Doghouse]

Whoa!!! This surprises me. I also have a CU with a 40K HELOC, equity loand and 1st mortgage that I stopped paying on. Right now I left $25 in both checking and savings and they have started taking out $4 from checking for service fee since I no longer do a direct deposit.

They took out the amount to satisfy your line of credit? Now I am thinking it may be best to go and close my accounts at the CU if they will make a withdrawal to puts my acct into the negative. Gulp, I had been a member for 25 years.

[magyar123]

This type of theft by credit unions is called cross collaterization. As long as you have an account with them they can rob you blind.

[MomIcantFindmy]

Actually you can call and have the money put back into your account as the CU violated the automatic stay by taking the funds (or further placing you into the negative). They probably did not receive word you filed when they did that. You may have to speak to the branch manager or something to fix this. I guess since there is no money in there you must decide if it is worth your time....if you are a no asset 7 I would think it is not worth it.

[inpain66]

My car loan is with a credit union and I have a loan and credit card with them. This is why I have not filed yet. I am afraid I will lose my car and my credit is SOOO bad that I will not be able to get another call.

I am waiting for a miracle

[MomIcantFindmy]

My car loan is with a credit union and I have a loan and credit card with them. This is why I have not filed yet. I am afraid I will lose my car and my credit is SOOO bad that I will not be able to get another call.

I am waiting for a miracle

Not to jack the thread but.....

you can survive without new cars....we bought two cars off craigs list for $2K each (took us 5 months of no car payments to save that much)...and my husband uses the cars to commute everyday. It can be done and it feels great not to owe!! Plus the cars IIB have not been picked up yet.

[StartingOver08]

Different CU's behave differently. I filed CH 7 9/30/08. I have a 2nd mtg ($62k), an auto loan, a VISA card and a checking account with the same CU.

I am surrendering my house in the CH7 (so the CU gets zip on the mtg). I have removed all but about $30 from my checking account and the visa is in the BK ($23k).

I reaffirmed the car for the same reasons you cite ($8k). I was able to change the terms on the car to make it a little more affordable and I asked the CU to remove the Cross Collateralization to the credit card. THEY DID. My reaffirmation agreement specifically states there is no cross collaterlateralization to any other account.

My opinion - CU's are easier to work with now then they may have been in the past because you can actually get to a person that will work with you in the BK dept. At least that is my experience. YMMV.

[mindyandy420]

So does this mean

I owe that money? I dont think they will let me close the account with a negative balance. I will call today and talk to somebody.

[FloridaGuy]

Just prior to our filing we had a loan that was automatically deducted from a saving account. We requested that they stop the auto draft. We drained the saving account as told to do. The company still auto deducted the payment, and the bank (not a CU) paid it, which put our account -875.00. We included negative amount in our BK. About 2 weeks later our checking account (which had about $150 and a second savings account which had $44.00 were drained to $0, and the amount put toward the overdraft.

After that I spoke with the bank, and let them know we had filed BK (Which they should have already known anyway) because I needed to put some money back into the checking account as there were some auto debits I forgot about, and was afraid they would drain the money out again.

I was told since they were aware of the BK... no more attempts to collect for the overdraft would occur so we could place money in other accounts if needed.

We are now trying to get the money back they had deducted originally as it was technically property of the BK estate at that point.

[Bell30656]

MomIcantfindmy, I wanted to go that route with an inexpensive car from Craigslist but my lawyer informed me that I needed to have a car payment or I would be going chapter 13 instead of 7. So I'll be keeping my pickup which only has about 20 months of payments left on it at $300 per month.

[StartingOver08]

MomIcantfindmy, I wanted to go that route with an inexpensive car from Craigslist but my lawyer informed me that I needed to have a car payment or I would be going chapter 13 instead of 7. So I'll be keeping my pickup which only has about 20 months of payments left on it at $300 per month.

Bell, if you run the amortization table from the original note - you will see that you are doing the right thing. Since there is only 20 months left and a reasonable payment (assuming you can afford $300/mth), then why not reaffirm?

[jeb]

Bell, if you run the amortization table from the original note - you will see that you are doing the right thing. Since there is only 20 months left and a reasonable payment (assuming you can afford $300/mth), then why not reaffirm?

Seems that those in the know here say NEVER reaffirm.

If I understand it correctly, if you reaffirm then you are on the hook for the amount of the loan and they can hold you for all of it if at some point in time you are not able to make the payments.

However, if the loan goes into the BK and you keep making payments, they will accept them but can't hold you responsible for the whole amount. - jb

[Doghouse]

So, from what I am reading here, the CU will siphon the $50 in both checking and savings AND then keep deducting my account till it goes into the negative? Just because I have a 1st and 2nd mortgage plus a HELOC and credit card with them that I have stopped paying?

So, is it advisable to just go withdraw the $50 left and just close the account? I don't want a negative account going into checksystem.

[Doghouse]

Different CU's behave differently. I filed CH 7 9/30/08. I have a 2nd mtg ($62k), an auto loan, a VISA card and a checking account with the same CU.

I am surrendering my house in the CH7 (so the CU gets zip on the mtg). I have removed all but about $30 from my checking account and the visa is in the BK ($23k).

I reaffirmed the car for the same reasons you cite ($8k). I was able to change the terms on the car to make it a little more affordable and I asked the CU to remove the Cross Collateralization to the credit card. THEY DID. My reaffirmation agreement specifically states there is no cross collaterlateralization to any other account.

My opinion - CU's are easier to work with now then they may have been in the past because you can actually get to a person that will work with you in the BK dept. At least that is my experience. YMMV.

StartingOver, so signing the reaffirmation was contingent on them changing the terms of your car loan? Also did they reduce the total balance owed or just changed terms to reduce your monthly payments?

My car loan is with a different CU. I owe 14K and just defered payment for 2 months ('cos I am unemployed and also helps my means test by not reducing amount owed by the time I file in Feb 09). I'm hoping to get them to change terms too.

[drowningNdebt]

Now a days any bank will reaffirm a car loan. The auto industry is in the pipes. However, be very careful reaffirming. You will be stuck with the debt no matter what.