Car, Credit Union, Credit Card (InfiBank)

[HakunaMatata]

I've been concerned about an auto loan, credit card, and potential cross-collateralization. My auto loan is with a credit union and I'm discharging a $3k credit card. Despite credit union logos being plastered all over the card, InfiBank is "the issuer". I want to better understand the relationship between InfiBank and my credit union.

"We [InfiBank] issue credit cards on behalf of our clients using their brand".

Does InfiBank exclusively own this debt or do they manage the debt for the CU? If a co-branded partnership exists, am I at risk for cross-collateralization?

Regarding my auto loan, I filed on September 23rd (days following my auto-deducted loan payment). My October payment is due next week. Do I need to contact the CU to make payment arrangements? I intend to reaffirm the loan provide cross-collateralization isn't an issue.

[aljohnson007]

I can almost guarantee you that every CU has a cross coll. agreement. Best advice I can offer is to move your account elsewhere.

[StartingOver08]

Contact the CU's bankruptcy department to find out their procedure for payments. I can no longer have direct access to my account and have to mail in a payment or deposit a payment with the CU. My CU said it was because I caused a 'loss' (BK cleared a cc and 2nd mtg with them). So find out your CU's procedures by speaking directly to their BK dept.

REAFFIRMATION AND CROSS-COLLATERILATION: I reaffirmed a small auto loan with my CU and had to negotiate the cross collateralization off of the agreement. First agreement was automatically generated by them and sent to my attorney. Once I read that agreement, I had to change many of the terms directly with their BK dept - once the terms were agreed to, then another written agreement was drawn up and signed by all parties and filed by the CU.

[HakunaMatata]

Thanks for the tips! I intend to contact the CU regarding payments today. The BK to-do list is seemingly ever-growing!

I'm still confused about potentially causing the CU a loss. If the card is issued by InfiBank (my only affiliation with InfiBank is this card), how can this adversely affect my CU? It appears some credit unions don't have the capital or don't want the risk associated with credit cards. In such cases, banks such as InfiBank step in. My debt seems to be tied to InfiBank (they are listed on my creditor matrix), not my CU. Is there a shared loss in such a scenario?

StartingOver-

Wow...excellent job on negotiating! Were you underwater on the auto loan?

[HakunaMatata]

I contacted my CU regarding my auto loan payment. I asked to speak with the BK department. After some hesitation, my call was forwarded to a rather unfriendly individual. I inquired about my loan, explained I intended to reaffirm, gave my account number, and I was told my payment would NOT be automatically deducted due to the BK. I scrambled to find my checkbook, wrote a check, hand-delivered it to a teller, and received a receipt. I checked my account balance minutes ago to discover my payment was automatically deducted! Is the CU permitted to do this?!

Thus far, my accounts have remained open and available (with very few funds as I'm setting up banking elsewhere). I definitely don't want to make double car payments...especially if the CU refuses to reaffirm!

[StartingOver08]

No the CU can not take an extra payment. Make sure to speak to the BK dept again. Mention to your attorney what happened, see if he knows of a remedy. Some of the people in the Bk depts have no clue what they are doing (found that out with the other car that I surrendered and also with Verizon). Unfortunately it seems that they 'assign' someone to your account during the BK and you only get to work with the one person. Hopefully your person is someone that knows what's going on.

(As to your question from your previous post, yes I was upside down on the car, but only a little...which is fortunate because the Fl exemption for vehicles is $1000!)

[backtoschool]

The CU cannot take an extra payment. But the left hand is not talking to the right hand at the CU and you will have to get your automatic payments stopped. (get that in writing) And then send your checks manually to the bk dept. I doubt that they are going to credit you back for the double payment if you bk'ed anything with them though.

[HakunaMatata]

Startingover-

Thanks again! I got the feeling there really wasn't a BK department. Everyone seemed so confused. Perhaps my constant inquiries will prompt a new division?! I know I'm not the only bankrupt chica in Michigan!

I was curious if equity could play a role in reaffirming auto loans. Presently, I'm slightly underwater.

BTS-

I'm not even sure if I'm BKing anything with the CU. I have a credit card with their logo issued by InfiBank (First National of Nebraska). I wish I understood this relationship! I'd have a better idea of where I stand with the car.

Since the auto loan is part of the BK, is the CU permitted to automatically deduct payments? I filed nearly one month ago so I imagine they are officially aware of my insolvent status. Do I have to surround myself and car with BK flashing lights to get these people to work with me?! Ugh. I'd prefer to continue with automatic deduction IF cross-collateralization isn't a factor. I didn't think I was able to do this though. Thinking has cost me double car payments. So not cool.

[backtoschool]

Startingover-

Thanks again! I got the feeling there really wasn't a BK department. Everyone seemed so confused. Perhaps my constant inquiries will prompt a new division?! I know I'm not the only bankrupt chica in Michigan!

I was curious if equity could play a role in reaffirming auto loans. Presently, I'm slightly underwater.

BTS-

I'm not even sure if I'm BKing anything with the CU. I have a credit card with their logo issued by InfiBank (First National of Nebraska). I wish I understood this relationship! I'd have a better idea of where I stand with the car.

Since the auto loan is part of the BK, is the CU permitted to automatically deduct payments? I filed nearly one month ago so I imagine they are officially aware of my insolvent status. Do I have to surround myself and car with BK flashing lights to get these people to work with me?! Ugh. I'd prefer to continue with automatic deduction IF cross-collateralization isn't a factor. I didn't think I was able to do this though. Thinking has cost me double car payments. So not cool.

CU's are very flaky when it comes to BK. I remember the bit about the credit card now, sorry for making you say it again.

I think the easiest solution is to move quickly to another bank and pay the car payment manually. Have you moved your direct deposit to another bank yet? That will take at least one pay cycle so I would do that immediately.

Once your salary is safely going to the other bank, you can manually pay the car payment each month to the bk dept.