FYI: Denial for Membership @ CU

[hist111]

The reason CUs are more aggressive, when it comes to debt, is because they are not some large bank who can easily absorb loses. They also do not have the luxury of being loaned bailouts to stay afloat. Or even the training or skills to collect debt as larger banks do.

To large banks who can stay afloat, our bk are effectively tax deductions against their future profits. While I myself had a CU pursue me in courts, I still really enjoy banking with my present CUs. Whereas, banks do not want to touch me post BK.

Of course once I build up my credit again, I am sure they will come knocking and bearing gifts to join. Sorry, it does not work that way with me. I'm a person who remembers who helped me when I was down and out. That is who my future loyalty and business will be with and I am not talking about some orchard type card either lol...

[RyanIsrael]

If you weren't applying for credit (loan or credit card),why would they decline your application?

Ryan

I was declined membership at a CU due to BK. Wrote letter asking for reconsideration of membership and to open a checking/savings account to start a banking relationship. I have only been w/banks up to this point. A manager reviewed my info asked how long I've been at my job, how much I make per year, and when I will be discharged? I provided that info to them by email yesterday and they offered to make exception to open accounts. I'm so excited to start a relationship with this CU.

[Amy26]

Grats to you! I am totally in love with Navy Federal CU since my BK. I have 2 cards with them (5k and 3.5k), a 5k line of credit and they refinanced my car loan to 5%. Definately worth the effort!

[chicagoed195]

I had a few problems with my credit union at first. They terminated my ability to use an ATM card on my share account. When I attempted to withdraw the funds in person the teller said I couldn't because (horrors!!) I was in bankruptcy. I explained to her that it was not a communicable disease and that I would like to see the branch manager. I talked to the branch manger and explained that since it was a chapter 13 and our car loans were a included in the filing, they had no legal authority to withhold access to my funds. He agreed and did some sort of override on my account that solved that problem permanently. About six months later, our ATM privileges were restored.

This credit union does have an internal program to help restore damaged credit through secured credit cards and term loans, so I am hopeful that I will be able to use them as I start down that path.

With all that is involved in a bankruptcy, although they did initially restrict access to my funds, they never attempted to take the funds nor did they try to terminate me as a client. So in retrospect, it was not an entirely bad experience.

[researchnerd]

all true... unless / until you have an issue, then CU are like the anti-christ LOL!

I found this to be true also. My CU was the lender for my car, and throughout my BK debacle they were the most aggressive creditor -- sent an attorney to both of my 341s with reaffirmation agreements, questions, etc. There was zero room for negotiation if I didn't reaffirm AND pay the arrears in full. When I was finally discharged, it took them less than two days to repo my car.

Like Pandora's situation, it did not benefit the CU at all in the long run. They sold my car at auction for $20k less than I owed on the loan, which of course they can never collect. Had they been willing to work with me, they'd have gotten paid in full. Needless to say, I am not highly motivated to work with CUs again.

[Floridagail]

I really do not miss my credit union of 33 yrs ( They stopped my debit card and attempted to blackmail me into paying a loan.)
If you do not reaffirm we will stop your debit card forever , so be it. After my chptr 7 filing. I had bought like 5 cars thru them, Paid on a revolving loan 4000 for over 33 years. I figure i paid it off 10 times for the interst i paid. I am happy with a regular bank so far.

[DYLAN150]

Good for you and thats the right way to handle things. Nice going!

[Pandora]

congrats on getting the account - hopefully the lemons will stay on the tree ;)

[MeLLE159]

Yea I know what you mean. I've never with a CU til now so hopefully life doesn't hand me any lemons.

[Pandora]

Well for starters there member owned which means you have a stake in it. They have lower fees regarding overdrafts, and better interest rates on savings. Plus some have really have really high customer service. And are willing to work with you once you've proven to smart w/credit after BK.

all true... unless / until you have an issue, then CU are like the anti-christ LOL! We were with our CU for over 20+ years - never late, all loans paid on time and paid off early. Life was good.... then in 09 - hubby lost his job - CU held our 2nd mortgage and that's all she wrote. Refused to work with us at all - which resulted in our having to file CH. 13 to strip the 2nd.

Ironic thing is - had they just lowered the rate to what the current rate was at that time, or extended the loan out 5 years at the rate it was at, they would've received every dime owed and thensome (extra interest from extending it out) - and we wouldnt of had to file BK. Now they can get pennies on the dollar - they had their chance.

[MeLLE159]

Well for starters there member owned which means you have a stake in it. They have lower fees regarding overdrafts, and better interest rates on savings. Plus some have really have really high customer service. And are willing to work with you once you've proven to smart w/credit after BK.

[chicagoannie]

Great news! May I ask - what is the benefit/motivation to be in a CU versus a regular bank? What advantage does it offer? Tks!

[MeLLE159]

I was declined membership at a CU due to BK. Wrote letter asking for reconsideration of membership and to open a checking/savings account to start a banking relationship. I have only been w/banks up to this point. A manager reviewed my info asked how long I've been at my job, how much I make per year, and when I will be discharged? I provided that info to them by email yesterday and they offered to make exception to open accounts. I'm so excited to start a relationship with this CU.