Credit Union Credit Card

[Senior Citizen]

I am in default . They want a default payment of X dollars on a certain date and another payment the following week. This will be an excess of over 1K. I do not have the money. They say, without payment may result in my membership privileges being revoked. I have a checking account with direct deposit. What money comes in goes out with a auto deduct for car loan.(From them). Also a savings account with 10 bucks in it. My Question , what privileges would I lose? Sometimes my wife goes there and writes a check for cash. Of course we write checks for bills etc. We also get a little interest an the accounts. PS: The card is in my name not my wife.

[GoingDown]

Start getting your monthly income checks deposited to a different bank or have them mail them to you. Stop using that account. Abandon that sinking credit union account-- if you can't afford to pay them, then you shouldn't make any further payments to them. There's no sense in throwing good money away on something you can't pay.

Then weigh your options. Do some research on this forum, and talk to a few bankruptcy attorneys. If bankruptcy is the right solution for you, then file for bankruptcy when the time is right. I have to wait for quite awhile before I can file, but after I get past the "look back" period, I'm to file for bankruptcy myself.

[Senior Citizen]

Will be in a new bank by Monday and have my S/S check sent there.

[SinkingFast]

If you speak directly with Soc Sec, you can get the Dir Dep changed over real quick.

My Mom moved her accts when we moved. While we were at the Bank, the Bank Officer/Rep that was assisting us got on the phone to Soc Sec for Mom. She explained who she was then handed the phone to Mom who spoke with the Soc Sec rep. When they finished their chat, Mom handed the phone back to the Bank rep, who gave Soc Sec Mom's new acct info and some other stuff. That was around the 10th of the month. The very next Soc Sec deposit went right to the new bank. It went really quick and very smooth too.

[StaciMM]

A CU can apply a balance in checking/savings to an amount owed for a credit card or any other debt. Your membership agreement most likely states that all accounts are cross - collateralized. (Or something like that!)

One thing-they might apply car payments to the credit card, putting your car loan into default. I'm not sure if they CAN but its something to be aware of as a possibility.

[Senior Citizen]

A CU can apply a balance in checking/savings to an amount owed for a credit card or any other debt. Your membership agreement most likely states that all accounts are cross - collateralized. (Or something like that!)

One thing-they might apply car payments to the credit card, putting your car loan into default. I'm not sure if they CAN but its something to be aware of as a possibility.

Note 3rd paragraph (B)RIGHT TO REPAYMENT OF INDEBTEDNESS - You each agree that we may (without prior notice and when permitted by law) charge against and deduct from this account any due and payable debt owed to us now or in the future, by any of you having the right of withdrawal, to the extent of such persons' or legal entity's right to withdraw. If the debt arises from a note, "any due and payable debt" includes the total amount of which we are entitled to demand payment under the terms of the note at the time we charge the account, including any balance the due date for which we properly accelerate under the note.

In addition to these contract rights, we may also have rights under a "statutory lien." A "lien" on property is a creditor's right to obtain ownership of the property in the event a debtor defaults on a debt. A "statutory lien" is one created by federal or state statute. If federal or state law provides us with a statutory lien, then we are authorized to apply, without prior notice, your shares and dividends to any debt you owe us, in accord with the statutory lien.

Neither our contract rights nor rights under a statutory lien apply to this account if: (a) it is an Individual Retirement Account or other tax-deferred retirement account, or (b) the debt is created by a consumer credit transaction under a credit card plan (but this does not affect our rights under any consensual security interest), (c) the debtor's right of withdrawal arises only in a representative capacity, or (d) the debt is created by a home equity loan. We will not be liable for the dishonor of any check or draft when the dishonor occurs because we charge and deduct an amount you owe us from your account. You agree to hold us harmless from any claim arising as a result of our exercise of our right to repayment.