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Credit union charging extra fee while in bankruptcy

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    Credit union charging extra fee while in bankruptcy

    Maybe this is some provision of the bankruptcy laws that I don't understand, I have no idea - but it seems screwy to me.

    Several years ago my credit union set up an online bill-pay service. The service was optional, it cost a monthly fee of $5.95, but they offered to waive the fee if I agreed to online-only statements (instead of a paper statement in the mail). I had no problem agreeing to that. For at least 3-4 years now I've been printing my statements from the online banking and paying bills online with no fee.

    We filed our Chapter 7 in early February. Included in the bankruptcy filing was our car loan with the same CU, which we reaffirmed.

    This weekend I noticed in the online banking a charge of $5.95 for online bill pay. Confused, I called up the credit union yesterday. They gave me a bunch of runaround, didn't seem to believe me that I had signed up for online statements years ago, and told me there was no way I could see my statements online even though I was looking at them on my computer screen. Looking back, I see now that they've charged me that same fee at the end of February, March and April (but not before then). The CSR told me she would research and call me back.

    When she called back, she said that because of the bankruptcy they can't allow the online statement option and therefore it will cost me $5.95/month until my bankruptcy is complete, unless I want to cancel the online bill pay service.

    I know that collectors are prohibited from making any collection attempts, and every statement we've received from our mortgage has said something about "for informational purposes only." Our CU statement has all of our accounts on one statement (checking, savings, car loan), so maybe that has something to do with it...I can see why they would want to avoid a potential violation and not mail me a statement, but I can still print it from their website. The April statement doesn't say anything about "for information only," it clearly states that a payment of $xxx is due on 5/12/10 (and also that we'll have it paid off in August!).

    Today is actually our 60th day and the last day for objections. I'm checking PACER relentlessly. I expect discharge paperwork to show up within the next couple of days. The total fees charged for this so far are less than $18 - as long as they take it off by the end of May it's not worth my time to raise hell over it. Still, I'm curious - does this sound normal to anyone?

    #2
    My understanding: most creditors (yes, your CU is a creditor since you have debt with them) remove online account access as that could be viewed as a collection effort. So if you temporarily do not have online account access, sounds like they can & will charge you if the online statements are the only way they waive the fee.

    Out of curiosity - what is your plan on the vehicle? Surrender? Retain? Having checking/savings balances at an institution where you also have debt can be problematic due to their right to offset...
    Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
    (In the 'planning' stage, to file ch. 13 if/when we have to.)

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      #3
      As I said in the original post, my online access is still intact, I can still view my statements and see recent transactions in online banking just as before. None of that has changed.

      The CU is of course a creditor, but we've remained current on the car payment. They stopped the automatic draft when we filed, but I set it up in online banking to make the transfer every month. As I said we are reaffirming the car. I'm very much looking forward to having that paid off in a few months!

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        #4
        Sorry, I overlooked the comment about reaffirming.

        Originally posted by fireworks View Post
        As I said in the original post, my online access is still intact, I can still view my statements and see recent transactions in online banking just as before. None of that has changed.

        The CU is of course a creditor, but we've remained current on the car payment. They stopped the automatic draft when we filed, but I set it up in online banking to make the transfer every month. As I said we are reaffirming the car. I'm very much looking forward to having that paid off in a few months!
        Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
        (In the 'planning' stage, to file ch. 13 if/when we have to.)

        Comment

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