illegal collections by my bank

[jjlawrence]

Our bk was filed in Oct. 2002 and discharged in Feb. 2003. At that time we hard a secured loan with our bank for 20,000 dollars and secured by our vehicle, boat and trailer. During the bk proceeding we called our banker to try to reafirm the loan. He said he would see what he could do and get back to us. The collateral at that time was worth much less than the loan. He never did get back to us. So the debt was "discharged" with the bk. The bank continued to take payments out of our account on a monthly basis.

When our pay periods changed, many times the funds were not available on the due date. They would wait and take the funds out whenever a deposit was made. They have never tried to take back the vehicles. Even though when the loan was high, we would have much rather gave them back there collateral. Many times they have taken funds out that we wanted to use for other bills. This has caused many NSF charges and checks sent back (also causing another fee to the business). When our payments were late, they have posted it on our credit report as iff the bk did not happen. THey Know it did! The loan balance is now down to $2500.00, so we do want to pay it off.
Do we have any recourse on the bank for their illegal practices in collecting this. I have all the late notices, logs on phone calls and NSF notices, as well as the forced withdrawal statements from our bank account.

Payment is now due again. CAn anyone advise on this.

thank you.

[bkfiler]

well thats a good question.

they cannot report late payments to or any more credit history on that loan after the bk petition. you should send them a letter stating that you credit history is reported wrong. clear that up. document each letter with a certified/return signature. after 3 times of them not correcting it take them to court.

as for the banking issues, you prob at some point gave them permission to take monthly payments. so i guess that is on you for not having the funds available for whatever reason the funds were for.

i see them as separate issues. if you dont want them to take auto payments anymore then write a letter to stop it.

[jjlawrence]

[QUOTE=bkfiler]well thats a good question.

they cannot report late payments to or any more credit history on that loan after the bk petition. you should send them a letter stating that you credit history is reported wrong. clear that up. document each letter with a certified/return signature. after 3 times of them not correcting it take them to court.

as for the banking issues, you prob at some point gave them permission to take monthly payments. so i guess that is on you for not having the funds available for whatever reason the funds were for.

i see them as separate issues. if you dont want them to take auto payments anymore then write a letter to stop it.[I did stop the automatic payments, but they keep taking the funds out when ever they want. Last month they took out 2, as we were behind. Also they have sent late notices and charged late fees. We never gave permission for them to collect or did we reaffirm. They just pretty much ignored the BK]

[jjlawrence]

We never gave the bank permission to collect on this, I did stop the automatic withdrawals 2 years ago. But if I dont make the payment they take it whenever they want. sometimes at 10 days late, sometimes at 30 days late. They also sent late notices and charge us late fees. They have never recognized the BK

[bkfiler]

ok then i beleive its not legal to keep taking money out if you stopped the auto transfer. if you have that letter then take it to them.

as for late charges, hmm - i guess they could charge you late charges according to the previous loan terms. seems fair.

but they still cant report any negative information onto you account after you filed for BK.

maybe just focus on gettign those paid off if you want and removing any negatives from your report shown after the bk petition was filed.

[audreyl]

What about getting a new bank account and stop putting money into the other account for them to take?

[Minnymouth]

jjlawrence,
You are telling us that your were discharged in 2003 and they are still taking payments out of your account even though you sent a "written" request to stop automatic payments?????

Somewhere along the line either you reaffirmed, or they did not receive the notice of stop payment thru automatic deduction.

Why have you waited so long to start doing something about this.................

You have just about paid them all that was owed, and you said they were included in your BK......

Yes you should have changed banks immediately......