Credit union refusing my car payments!!

[inpain66]

I am 30 days late on my personal loan with my credit union.

Today I tried to make my car payment online with the credit union and the transaction was denied. I called them and they said that they will not accept my money for the car payment until I pay what I owe on the personal loan.

I already have my lawyer but did not tell my bank or creditors yet. I pulled all of my money out of the credit union and put it into a new bank today. I figure my days with the credit union are numbered and I have to protect the little that I have. Good idea?

If the credit union is acting like this now then will they refuse to let me keep the car?

Should I start looking to finance a different car ? MY FICO is like 500 now and I do not think anyone will lend to me.

ONly good news is that I will be paying my lawyer in full on Tuesday. NO idea when he thinks I should file though...

[liz417]

Credit Unions can be difficult to work with when you file BK. They usually want you to reaffirm loans you have with them. I would definately have a "plan B" for a good used car just in case they try and make you reaffirm the personal loan in order to keep the vehicle.

Good Luck!

[AngelinaCat]

Our CU worked with us, although we had some of the same type of angst when we first filed, and even though our attorney's assistant talked to the CU the day we filed, we still had problems, as pwperwork made its way through the mails.

If you have a good history with your CU, you may be able to work it out with a person in the BK department.

We reaffirmed a car loan and Overdraft Protection loan, and they were okay with that.

But as Liz said, each CU is different. You were wise to pull your money out and put it elsewhere. Just make sure that the 'elsewhere' is not an institution where you have CC debt.

[debtmonster]

Plan B is start hitting www.autotrader.com and put in parameters for a low mileage car for the lowest price within 300-500 miles from your zip code. That's what I will do if they take my car without me reaffirming it. I am just glad I have a garage so the repo man can't take it.

[inpain66]

This is a nightmare. I have no money for another car unless someone gives me a car loan. I was never late on my car loan with the CU. I really do not want to lose my car because if I do I will have no job!

[StartingOver08]

Inpain, it sounds like you are dealing with the CSR.

Have you actually filed yet? Once you file, it goes to the BK dept. Believe it or not, they are much more reasonable to deal with than the CSR's. You can talk to a living, thinking, human being. The CSR's are just phone drone's with scripts that have no power to do anything other than read the next line.

I know it is stressful right now, but once you file you will be able to make an arrangement with the CU most likely. They really were the best of my creditors and removing the cross collateralization (which is what they are referencing right now) was easily accomplished. The CU's are privately owned - they will not take down two loans if they can get paid on one of them. That is directly opposite of the banks - they are usually all or none.

[debtmonster]

Don't forget that you can go to http://www.722redemption.com/debtor_redemption.aspx after you file bankruptcy. In my case, I am about $6,000+ upside down. Once I file Ch. 7, I can re-finance it using the people in the web site and they strip off the negative equity and refinance at a much higher rate. My credit score is around 489 right now and they will do it. My payments are $309 right now for 48 more months at 5.9%. They said they would knock off the payments to around 30 at 24% for around $327/mo. So my payment goes up a small amount, but I am knocking off 18 payments and I can pay the car off sooner. At least I'd be owing $6,000 in principal instead of $12,000+ on the car I have now. That would be another option for you instead of having to get a whole new car. It's easier to keep the one you have now and just get it re-financed as a 722-redemption.

[bcvw]

This morning I stopped by the CU drive-up (before lobby hours) to make my 2nd mortgage payment and they wouldn't accept it because "the screen says we have to call management." The CU is included in our BK (car, LOC, and CC), but the 2nd mortgage is paid outside the plan. I left the check there and told them to figure it out and call me back.

Later today, they called and said the payment had been accepted and they were sorry. Go figure.

[Bell30656]

Unfortunately due to the cross-collateralizion clauses that were in all the paperwork that you signed on each loan, the credit unions will not be giving you the title to the car even if you pay it off. That's right, if you don't pay for the loan, credit card or whatever... you don't get to keep the car. Aren't credit unions wonderful?

[StartingOver08]

Unfortunately due to the cross-collateralizion clauses that were in all the paperwork that you signed on each loan, the credit unions will not be giving you the title to the car even if you pay it off. That's right, if you don't pay for the loan, credit card or whatever... you don't get to keep the car. Aren't credit unions wonderful?

BUT YOU CAN NEGOTIATE THE CROSS COLLATERALIZION OFF THE LOAN IN YOUR REAFFIRMATION AGREEMENT. BTDT. You get the title when it is paid, I put it right in the agreement, in writing agreed, accepted and signed by the attorney, myself and the CU and filed with the court.

[pookieny]

Plan B is start hitting www.autotrader.com and put in parameters for a low mileage car for the lowest price within 300-500 miles from your zip code. That's what I will do if they take my car without me reaffirming it. I am just glad I have a garage so the repo man can't take it.

Be warned though, my neighbor did that and the repo guys called the cops it ended up being a big spectable.

[debtmonster]

I have a friend who didn't pay on a Mazda RX-7 for 2 whole years and they could not repo it. He kept it in the garage. One day he left the garage door open. The repo man came, entered the garage and proceeded to start the car and back out. My friend hear the noise and brought out his gun and pointed it at the repo man's head and said to get out or he will die. The repo man got out and told him that he was going to call the cops for doing that. He left and shortly after, the guy came back with a sheriff. He told the sheriff that he pulled a gun on him. The repo man explained to the sheriff that he entered the dwelling to take the vehicle. The sheriff explained to him that he was in his right to put a gun to him since it was inside the garage of the property and not out in the open. The repo man left all pissed off and did not get the car. The sheriff told him he would have to wait until the car was either out in the open or outside the property.

The bank was getting impatient. Then one day the guy had some stuff going on for sale and the bank sent over an undercover representative over to find out what the guy was currently doing for a living. He explained that he was a photographer. The undercover bank rep told him that they would be interested in his work and gave him an address to meet him downtown. Well, he ended up driving the RX-7 down there instead of his other beater car. The place he was supposed to meet was on the 6th floor of some building. The suite number did not exist. He knew he had been had. He ran back down the stairs and by the time he got out to the parking lot, the repo man had his car in tow.

But at least he stalled them for 24 months!

I used to work at a finance company as a programmer. I remember working on the database and seeing cars being on the road for over 2 years without being paid and the call center had a hell of a time tracking down the people who took out the loans.

[subking]

Wow never heard of refusing payments before. My bank won't let me pay my car payment(not reaffirmed) online anymore but they take my payment at the bank no problem and provide a reciept of payment.