Should we send letter to our credit union?

[weRN2deep]

Hello, we walked into our cred union a few weeks ago and asked to close our acct. We had drained it down to $5. They wouldn't let us close it because we owe $1500 on a loan.

We missed our CC pmt on Sept 6. They haven't started calling... but now we've got a late fee and the defaulted higher %%.

Should we write a letter and tell them what is up, and refer to our attorney? or just ignore?

[music12]

that's weird. why not just withdraw the $5? does it matter whether it's officially closed when the balance is zero?

[weRN2deep]

I can take out the $5, it is actually $3.xx in checking and $2.xx in savings; just happened to be the amt left after our last debit. That is not the issue... they won't close it since we owe them $1500.

I didn't know if we needed to officially close the acct. Wasn't sure if it would benefit the future (Chexsystems) report if it was closed by us. I guess it's all a moot point?

[bankruptsee]

I wouldn't put any money in that account. I think most CUs have the right and ability to take what you owe them from the acct.

[liz417]

Nah, don't call them...they'll be calling you soon enough. When do you plan on filing?

[weRN2deep]

I'm not planning to put any money in, I'm trying to CLOSE this acct. We have opened another cking somewhere...

When do you plan on filing?

Early November.

[liz417]

I'm not planning to put any money in, I'm trying to CLOSE this acct. We have opened another cking somewhere...


Early November.

Let the account go into the (-)negative and then just add them to your matrix when you file in Nov. They are being bu**heads!

P.S. Who cares if they report you to Chexsystem, you'll be established at a new bank and your credit will be trashed (at least for awhile) because of the BK anyway

[music12]

i don't think it's a good idea to let the account go negative. just leave it with the $5.

and, if they get reported to chexsystem, it could make it harder to start a new bank account. so i would try to avoid that if possible. credit and chexsystem are different: bad credit won't stop you from opening a new bank account, but chexsystem could.

[backtoschool]

If an bank or CU puts you into chexsystems because they won't close your account due to a credit line not being paid, you can send a copy of your discharge to Chexsystems showing that you included the bank in your bankruptcy and they will remove the Chexsystems entry.

[liz417]

i don't think it's a good idea to let the account go negative. just leave it with the $5.

and, if they get reported to chexsystem, it could make it harder to start a new bank account. so i would try to avoid that if possible. credit and chexsystem are different: bad credit won't stop you from opening a new bank account, but chexsystem could.

Yeah, but if the OP leaves $5 bucks in the account and they take out their $50 "application fee", then it'll automatically go into the (-) negative (that's what I meant). The OP has already stated that they are established in a new checking account, therefore there will be no need to open a new banking account anytime soon. I know that the Neg. account can be claimed in BK, but I don't know if BK cancels out a report to Chexsystems... maybe someone who knows the answer will come along...

ADDED: Thanks BacktoSchool....so a person CAN be removed from Chexsystem after the discahrge

[backtoschool]

Yeah, but if the OP leaves $5 bucks in the account and they take out their $50 "application fee", then it'll automatically go into the (-) negative (that's what I meant). The OP has already stated that they are established in a new checking account, therefore there will be no need to open a new banking account anytime soon. I know that the Neg. account can be claimed in BK, but I don't know if BK cancels out a report to Chexsystems... maybe someone who knows the answer will come along...

ADDED: Thanks BacktoSchool....so a person CAN be removed from Chexsystem after the discahrge

My CU is being a pissy about closing my account because I am bking a 15k credit card with them, so I really checked into this chexsystems thing. You just have to send Chexsystems a letter with a copy of your Chexsystems credit report and a copy of the discharge and a copy showing the bank that is listed on chexsystems is included in the creditor matrix, and they will remove the bank as long as you didn't bounce a lot of checks or have a huge negative balance and that is why the bank was included. If the bank was just included because the bank was throwing a temper tantrum and wouldn't close your account, Chexsystems will delete that entry.

[music12]

what would they take a $50 "application fee" for? is closing an account an application? i personally never heard of such a thing. maybe because i didn't need to close any accounts recently...

[liz417]

what would they take a $50 "application fee" for? is closing an account an application? i personally never heard of such a thing. maybe because i didn't need to close any accounts recently...

The OP had just opened/filled out the application for the bank account and that's were the application fee came into play, but found another bank s/he decided to go with and wanted to "cancel the application" from the bank in question...now they are saying there's an "application fee"

[music12]

oh! it's a fee for closing it early. leave it open for another 6 monnths and close it then. (usually after 6 months you can close an account without paying a fee).

[MrSmithster]

i dont think music gets it