Line of Credit with Credit Union, am I in trouble?

[compulsive]

I have about a line of credit from a credit union and I am past due almost 3 months. I got a call and was told if I don't make a minimum payment they will hand over my account to an attorney for immediate legal action. I also got a letter from the credit union saying the same thing.

What's going to happen?

[JollyGG]

Do you have a checking or savings at that credit union?

If you do get that money out of the bank. Many credit unions have what is called cross collaterization. In other words any loan with them is secured by your other accounts. Therefore they could just take your checking or savings money.

Open a new account at a different bank and put your money there.

[compulsive]

Do you have a checking or savings at that credit union?

If you do get that money out of the bank. Many credit unions have what is called cross collaterization. In other words any loan with them is secured by your other accounts. Therefore they could just take your checking or savings money.

Open a new account at a different bank and put your money there.

I don't have any money with them. Are they going to really send it to an attorney already or is that a scare tactic?

[magyar123]

I don't have any money with them. Are they going to really send it to an attorney already or is that a scare tactic?

Really depends for how many months you have been delinquent. If you haven't made any payments for more than three months or so, yes they will turn your account over to one of those scumbag collection/lawyer outfits.

[compulsive]

Really depends for how many months you have been delinquent. If you haven't made any payments for more than three months or so, yes they will turn your account over to one of those scumbag collection/lawyer outfits.

I've been delinquent for about 3 months now. Will it go to a collection agency or will I get served already?

[magyar123]

I've been delinquent for about 3 months now. Will it go to a collection agency or will I get served already?

Now that really depends on the CU's policy. Some send the account off to a collection agency, others don't. If they don't than they can/might/will serve you themselves.

[compulsive]

Now that really depends on the CU's policy. Some send the account off to a collection agency, others don't. If they don't than they can/might/will serve you themselves.

Well they told me it would go to an attorney, so does that mean I will get served?

[Run]

I would say yes, most likely you will unless you can head them off in some way quickly (like filing for bankruptcy and telling them).

Of course whether or not it is worth riding out or heading off depends on you. It is a civil and not criminal matter, so there is no presumption of you being "a bad person." I think people get scared because courts=criminals, but it is simply business.

It is more an issue of the potential embarrassment of being served (which should not be embarrassing, rather a routine thing), and of garnishment of wages or a lean placed on the products of your labor.

[emoney]

If there is anyway you can make payments you need to contact the CU ASAP. They do not want to sue you but you have given them no other choice.
regards,
emoney

[CATCHMEIFYOUCAN]

Send them even a little something to delay things if you are contemplating BK.

Best of Luck, Catchmeifyoucan

Something is better than nothing !