help

[pokergirl55]

We filed chapte 7 in 1999. a credit card debt with Credit union #1 was included in that discharge. We have been banking with Credit Union #2 for almost 10 years. within the last year CU#1 merged into CU#2. Today we recieved a letter stating that an audit was done and because of our past lost debt with CU#1 1o years ago, CU#2 is closing all of our accounts as of NOv 9. They have even taken my husband off our son's account and my husband's father's account, both of which he is a joint holder on. We have never caused CU#2 any lost debt and this was 10 years ago. Can our credit union legally do this? Any help would be appreciated. Thanks

[pokergirl55]

help

We filed chapter 7 in 1999. A credit card debt with Credit union #1 was included in that discharge. We have been banking with Credit Union #2 for almost 10 years. Within the last year CU#1 merged into CU#2. Today we recieved a letter stating that an audit was done and because of our past lost debt with CU#1 1o years ago, CU#2 is closing all of our accounts as of NOv 9. They have even taken my husband off our son's account and my husband's father's account, both of which he is a joint holder on. We have never caused CU#2 any lost debt and this was 10 years ago. Can our credit union legally do this? Any help would be appreciated. Thanks

[ForumReader]

We filed chapter 7 in 1999. A credit card debt with Credit union #1 was included in that discharge. We have been banking with Credit Union #2 for almost 10 years. Within the last year CU#1 merged into CU#2. Today we recieved a letter stating that an audit was done and because of our past lost debt with CU#1 1o years ago, CU#2 is closing all of our accounts as of NOv 9. They have even taken my husband off our son's account and my husband's father's account, both of which he is a joint holder on. We have never caused CU#2 any lost debt and this was 10 years ago. Can our credit union legally do this? Any help would be appreciated. Thanks

That does not sound right for CU #2 to do this especially for you guys being members of CU #2 for so long. My personal opinion of this is that they should not have taken you guys off the accounts especially if you have been banking with them for 10 years. You had debt with CU #1 and the debt was discharged ten years ago. I would definitely file a complaint if I were you. Sorry that happened to you guys. Credit unions are an interesting breed of the banking system.

[justbroke]

I might be inclined to send a letter to the CU stating that they are in violation of the discharge injunction and that you intend to seek out all legal recourse in the matter. This is almost like strong-arming you into paying the discharged debt.

Tell them, in the letter, that you will seek actual and punitive damages.

[lrprn]

[Pokergirl, I merged your two identical threads together. It's against our forum rules to post duplicate threads. You'll get more and better answers this way with one single thread. -lrprn]

Can our credit union legally do this? Any help would be appreciated. Thanks

It's really unfortunate that your CU#1 was bought by CU#2. It's also really unfortunate that yes, it's is possible that this credit union can legally do exactly what they did.

Credit unions are known to be very unfriendly to those who file bankruptcy. If you go back and look at the fine print of the original agreement you signed to open your accounts at CU#2, you'll likely find a clause that allows them to close your accounts for any reason they consider just. Do you still have your CU#2 agreement on file?

CU#2 didn't ask you to pay the discharged debt from CU#1 - that would be a violation of your 1999 bankruptcy discharge. They just asked you to go bank elsewhere. If that clause exists in your CU agreement allowing them to close your accounts for any reason they deem acceptable, then it's possible they can legally close your accounts and force you out just because they want to. I'm sorry they are being such clueless idiots.

Go find a nice local bank who won't screw you after 10 years of a solid relationship. There are a lot of local banks who would love to have your business. Good riddance, CU#2.

[music12]

there is really nothing illegal about them refusing to continue their relationship with you, as long as they are not trying to collect the debt, which they really are not.

i find it a bit strange that they think they can change ownership of an account, though. it's one thing to close an account, but just taking your name off a joint account basically gives your money away to the remaining joint account holder. i don't think they have a legal right to do that.

if it were me, i'd just take my money out and find another bank or credit union. all of them, to me, are pretty much the same. just be careful to minimize your fees. actually, these days banks are giving money away to people who bring their money, so look around - you might get $100 or so for your troubles.

[pookieny]

I might be inclined to send a letter to the CU stating that they are in violation of the discharge injunction and that you intend to seek out all legal recourse in the matter. This is almost like strong-arming you into paying the discharged debt.

Tell them, in the letter, that you will seek actual and punitive damages.

Awesome!

If I were the OP, I would take my money out of that CU ASAP! Don't trust them not to grab your money.

[LSUTiger32]

i find it a bit strange that they think they can change ownership of an account, though. it's one thing to close an account, but just taking your name off a joint account basically gives your money away to the remaining joint account holder. i don't think they have a legal right to do that.

This.

[music12]

This.

hey, are you correcting my english??!??

ok, fine! but i really didn't know that "that" was wrong there. oh, no, is "there" wrong too?