What is the deal with banks revoking online access?

[budgetgal]

This is my first post. I am pretty new to the boards and am in the 60 day club, in the last 30 days. I have learned so much already reading through old and current posts. I didn't see this exact topic when I searched, so I thought I would post. My credit union that I only have a savings account with has revoked my ability to transfer money from my outside checking account into the credit union. Well, and also to do the reverse. So if I want to do transactions I have to go into the bank. I called and they said they did it because of a change in my FICO score. I have never had any loans or credit cards with them. Is this common practice? My other bank which is one of the major ones hasn't made any change to my online banking and access to my checking and savings there, so I'm really hoping that remains the case! Would love to hear if anyone else has had this happen and how long before you got your privileges back.

[AngelinaCat]

This is common practice for a credit union because a credit union is not a bank, per sé. It is a collection of members that have chosen to come together and pool their money for the benefit of other members. If you default on your loan, or declare bankruptcy, it is considered that by your actions, you have harmed the rest of the members.

We had this happen with our account at 'Hub's CU. He had been a member since 1964, and had always been in 'good standing'. But once we filed BK, the 'nastygram' came informing us that our accounts had been closed because of our 'bad faith'. 'Hub was on the phone with them for several hours before we were able to get everything resolved. We reaffirmed our car loan--were going to do it anyway as we only had between 10-14 months left, and we reaffirmed our overdraft protection account.

We were unable to do anything for about ten days, and charges came in and were bounced because of the closed status. As I said, 'Hub spent some time on the phone with them, and in the end, all turned out okay. The CU honored the bounced checks, and cancelled the NSF charges.

Good luck to you; I hope this has helped.

[budgetgal]

Thanks. I just have the one savings account with them. I think I will just let the dust settle for a bit and not worry about putting any more money in just now. My thinking was that it would be smart to build my savings account up with them in hopes of turning to them in a few years for a good rate on a car loan, but it sounds like credit unions aren't BK friendly like I had hoped...... Appreciate the quick reply.

[IamOld]

Credit unions can be very very...weird...in my very humble opinion...there are some very large ones that act worse than banks, and some that make up rules as they go along...well, hey that describes the financial "industry" doesn't it??

[jetsfan2010]

NFCU did the same to me after I filed. Received a letter in the mail that pretty much told me that my online access was revoked, my checking account closed, overdraft protection cancelled, and debit card no longer active. If I wanted to do anything with my savings account I had to go in to see someone.

I closed that account the next day, and ironically have had no issues with the 2 "big banks" I have accounts with since filing.

[budgetgal]

Thanks for the replies. Iamold it does indeed seem par for the course for the "industry". jetsfan2010 I bet a letter is coming. I only have a few hundred dollars in that savings account......I may go ahead and close it out too....that is if they haven't already done it for me! I find comfort that you have had no issues with the "big banks". Glad I kept my main checking and savings with one of those. Was hoping that credit union would be a friendly place to rebuild my credit with reasonable rates....but obviously not! They don't even want me depositing money there! Oh well..... Best of luck at your 341 meeting this week!

[AngelinaCat]

Hi budgetgal:

If I may be so bold to ask, please consider using complete sentences and paragraphs when posting. It is hard for some of us to read and discern meanings when sentences are run-on and thoughts/subjects separated only by dots.

Thank you

[budgetgal]

Hi AngelinaCat:

I didn't realize it, but looks like I do that a lot in my posts. Annoying to read. Sorry. I think I picked up that bad habit on Twitter! In any case, I will make an effort not to use the dots. I used to say um, or hmmmm a lot when talking and stopped that. I think the dots are my online version of that. Just a pause between thoughts. xo

[kjrmom911]

I must be lucky. I have had a Golden 1 account for years. I have a current car loan through them. They did not even blink when I went in just after filing to talk to them about my accounts. Nothing has changed. I was worried though, so prior to filing I opened up an account with Safe Credit Union. I love them. Yesterday I went in to get my cashier's check for the trustee and the teller was all about telling me about the new programs they have to help rebuild my credit. I told him I'm not quite ready to do that yet, but I will keep them in mind. I am guessing that since so many people are having hard times, the credit unions are starting to realize that this is not going away anytime soon.

[budgetgal]

kjrmom911,
Glad to hear some credit unions are keeping an open mind. I really wish mine was one of them, but grateful that my big bank seems ok. Once I get my discharge, I'll start searching this site for advice on rebuilding my credit. I hope to be in a position to get a car loan in a couple of years, so credit rebuilding will be one of my priorities along with building an emergency fund. Good luck to you in the process and thanks for the reply.

[JackBondLove]

USAA did that to me. I could not access the regular website, and only had access to their cr@ppy mobile website, which did not allow me to download documents, etc.

They were a defaulted creditor, as well as the bank for my checking account and my auto insurer. I was told by a collector for them that I would not be able to continue to get car insurance, so I switched to GEICO (who gave me a sweet deal for the time I would not be using the car because I would be abroad.) In any case, I didn't want to have to deal with the US mail to get auto insurance documents like in the dark ages. After the change went through, I got a call from USAA saying that no, they would allow me to stay insured, so I let them insure my home - which was hard to insure because my house is 90 years old (I had to buy a dirt cheap house to take advantage of the homestead exemption on the eve of BK) and has an open flame heater.

[ValleYum]

@JackBondLove - you can get your docs from the USAA mobile site. It's a bit tricky but if you need any help getting docs, feel free to PM me.