Credit Union froze account

[tyspruiel]

This past weekend my husband and I were trying to use our debit card to purchase grocerys and it told us it was denied. We called our bank today and they told us that the account has been froze because although we voluntarily gave back one of the vehicles we can not use the account until our bk is discharged. We still have a vehicle with them that is current and we are making payments. The other we let it go back. Can they do that. The account has nothing to do with the bk and the money in there belongs to us. They then told us that after we are discharged we would have to close out our accounts with them since they took a loss on our vehicle. My husband said that he would put a stop on his automatic deposits into that account and that he would try to close out before we are discharged in June. Has this happened to anyone out there.

[HRx]

It isn't unusual for banks/credit unions to this. Ask to see thier written policy about this. Becuase this is a credit union, you have a better chance of being able to negotiate with them, on releasing your monies from the account.

Good Luck!

[HHM]

They can probably freeze your use of your debit card, but I don't think they can prevent you from withdrawing your money if you go down to the branch.

[tdooders]

I thought once you filed BK that the bank cant take any action on your accounts as in freezing them. We are still using our checking accounts with Chase and we had cards thru them that we are discharging. We have weekly check deposits and have been paying our mortgages and trucks and other bills the past two months. Can they do this at anytime once you file? I didnt think that was legal.

[edwards2]

We have 2 credit union accounts; one is a car and the other is a personal loan. They told us they would not allow us to reaffirm the car if we didnt reaffirm the other as well. I knew it was coming and I really didnt blame them. We have a debit card with them and our bank. So far neither one has denied us access.

[InDebtInMD]

We have a credit union saving account. Our van loan is through the credit union and the payment is automatically taken from the account once per month. We have funds deducted from my wife's paycheck every two weeks to cover the payment, plus a little extra.

Once we filed, I called the credit Union to inform them that I had filed, but that I intended to keep the payments current on the van (it is current). I told them it was my understanding that they would be unable to automatically deduct the payment once I filed, but the person on the phone told me they still could. (doesn't sound right to me)

In any event, I thanked the lady, and told her that I would check on the account on the 31st (payment due date) and that if it had not been debited that I would come in person to pay on my lunch break.

They didn't seem like they would give me a hard time so hopefully they will not.

We do owe about $1000 more than what the van is worth, so it doesn't count against my exemptions.