Underhanded tactics ~2 years POST BK

[sharksfan]

*We BK'd a local credit union (tens of thousands of dollars).
*My mother-in-law banks with said CU.

We borrowed a very small sum of money from MIL and set up payment via our banks bill payer service to send checks directly to MIL's checking account (account number on the check). 6 months of no issues.

For an unknown reason, an account number of one of our discharged loans appeared on our most recent check/payment. The CU credited the payment to this deficiency balance. We thought our bank screwed up, and contacted said CU ourselves to see of they could fix the payment. No can do says the head of collections... that account number appearing on the check wasn't their error. We contact our bank for further investigation.

Long story and a 4 way conference call later the truth comes out...

Some time last month MIL's CU sent a letter to the bill payer service administrator at our bank stating that the account number appearing on our checks was incorrect. They gave the "correct" account number as being one of our discharged loans.

After this came out, the CU backtracked and fixed the payment (while maintaining innocence).

Their argument was that my name appeared on the check therefore I cannot have it credited to an account that isn't mine. I had to point out that my name appears on the check because I am the maker... AND that only my wife was on this particular BK'd loan. Why not credit the payment to a current/open student loan that we are paying on?

[catleg]

You mean, you were making deposits into a checking account at the credit union by mailing bill-pay payment checks directly to the credit union?

I'm not surprised they got a little confused.

Funny that they routed the money into their own account that was discharged in BK rather than just, say, return the payment.

I think using bill pay for that purpose is a little bit "outside the box" don't you think? I mean, you could just have the check mailed to your mother in law so she would then deposit it.

[HHM]

I tend to agree with catleg..although the credit union royally screwed up, I think YOU created the risk (albeit minor) with the way you set up this payment.

What I don't get...who at the CU sat around and figured this out. How did they even cross check it to get to the point that someone connected a 2 year old discharged debt with a deposit going into some random account?

If you wanted, you could ding them for violation of the discharge injunction.