Credit Union closing my checking account

[DEBTCHAINS]

I'm so ticked off.

My CU has told me they are closing my checking account due to a "loss" on my account.

I had a line of credit for $500 that had like $450 due, I was paying payments on it like clockwork up until our BK. (we're discharged now. )

I wanted to keep this open at the time we filed, thinking I didn't want anything from the CU to be affected, but whatever, we still had to reaffirm our cars, so they knew, and we were told all unsecured should be included.

So, I call the CU and ask if I can make payments on the loan again, even if it makes no financial sense for me to do so, in order to keep my checking account open. They tell me no, that I need to pay it all off at once to have it reinstated. UNREAL. So much for a CU being about the customer, they're just a bank like anyone else.

Now, do I pay this just to reopen my account? (they said I can keep my savings by the way) or do I say FU and try to find a bank that will give me a checking account? Any suggestions?

[pcbuilder481]

why would you pay a debt thats been discharged, thats what the whole point of bk is, so you dont have to pay the debts.

[DEBTCHAINS]

Well, having a checking account and a debit card is also part of my new life. (no credit cards) and having to try to find a bank that will give me those things, might be an issue.
$500 in payments might be worth the peace of mind. I'll be calling banks this week to see what my options are. If it's no problem, I won't think twice.

[ccsjoe]

Shouldn't be a problem to open a basic checking account anywhere else. Most basic checking accounts nowadays come with a Visa or MC branded debit card, so I really don't see any issues there. If the CU wants to play hardball, let them. Go accross the street to the next bank and open there.

[SMinGA]

CU's tend to operate in a word of their own, and its not unusual they would cut off your checking for the defaulted/BK'ed account. And no guarantee they would reinstate your checking even if you paid it off.

Time to move on, I say. Look for another CU (I know, there fees and services tend to be better) or bank.

[DEBTCHAINS]

Thanks for the advice. My wife's CU is still okay, and I have a joint account, so it's not as big a deal as I once thought. I guess just feel kinda betrayed. I've been there 16 years! There's no reason for me to pay them back just to hold a checking account, so they can take a hike.

[HHM]

Yep, CU's are all warm and fuzzy when in good standing, but file BK, and CU's treat you as a leper.

It is par for the course and is to be expected. But as was mentioned, you won't have a problem getting an account at most banks.

[ssmdem]

CU's tend to operate in a word of their own,

That's the truth!! Most of the banks around here offer a free account with a direct deposit - so luckily we have options. We've been members of two different credit unions in the past and NEVER again. One said I needed to lower the deductible on my car insurance to have it refinanced through them. ?????? And another, we closed an account because the loan it was tied to had been paid off. Went back several months later to open a new account, and they refused and said once you close an account with them, you can't come back. They just make up the rules as they go along. HATE Credit Unions!!!

[conchfs1]

DEBTCHAINS,

I feel your pain. I was with USAA and was told I will no longer be able to conduct banking with them, even after I sent my $283 to pay up my checking account that was hit by interest. It's all about $$ now and what you have to offer them.

Good luck to your family.

[Floridagail]

My Gtecu, stopped my debit card once I filed. I called them, they said card was stopped due to bankruptcy filling . Account will stay open. After discharge If I reaffirmed a separate personal loan they would give back the debit card. My credit was already wrecked with them. I had opened another bank account already in case i needed one. So I left them after 40 yrs. I also reaffirmed my car and paid off after discharge. It still shows bankruptcy on that account no credit for paying off the car 9000 on credit report. ( Then the car died. ) On bright side I have fresh start.

[Pandora]

Yep, CU's are all warm and fuzzy when in good standing, but file BK, and CU's treat you as a leper.

aint that the truth Try having a 2nd mortgage with one and trying to strip it off.... good lord - not only are you a leper - you're king of the damn colony!

[df04527]

My Gtecu, stopped my debit card once I filed. I called them, they said card was stopped due to bankruptcy filling . Account will stay open. After discharge If I reaffirmed a separate personal loan they would give back the debit card. My credit was already wrecked with them. I had opened another bank account already in case i needed one. So I left them after 40 yrs. I also reaffirmed my car and paid off after discharge. It still shows bankruptcy on that account no credit for paying off the car 9000 on credit report. ( Then the car died. ) On bright side I have fresh start.

This is interesting - we are also with this cu (and for about 35-40yrs too). The strange thing going on here is our daughter is filing the bk7 -- I have an account at this cu that has always had her name on it as co-owner -- she is using this account now.

Are they going to shut down that account?

The other thing is SHE is the co-signer on her truck loan that is with them - and i just re-negotiated and re-financed that for her. That loan is my name first and hers second (they needed to use my credit).... so i ended up being first on the loan...

How will that get handled?

thanks for any insight - i just found this interesting as it's the same cu. She has not filed yet - we are weighing options and researching.

This is a great site - by the way.

[Floridagail]

They will cancel her debit card, but but not close the account.
She has to list them since she is co-signer, on the loan. so they will get notice. If she is current and paying then My guess is they will do nothing on it, since you are on loan too, she can just keep paying.
If she has checking they will stop debit card until from working. If she have any other loans there in her name? They will expect it to be confirmed or they will not reinstate the debit checking account card. I called them the bankruptcy dept at CU was very nice to me, asking me to think about paying them to rebuild my credit.
of course they told me the debit card was a credit union perk , they could stop. They would not close my account, so I closed it.

[df04527]

Thanks Flagal -- this is not good. That co-signer thing is what is bothering us. I was told that IF it appears on her credit report you have to report it. IF it does not appear on her CR - then you don't have to report it as a debt or an asset. This co-signed loan does NOT appear on her CR.

Any comments on that? I also was told something about the DMV records for the vehicle -- I am first on the registration, she is second.

The co-signer debt also JUST got refi'd with GTEFCU AND the 2k that she owed on one of their cards (over 120 late) was rolled in to the new refi. So that new loan is just now due for it's first payment this month.

We've not talked with an attorney yet and certainly will ask these questions when we do -- was just trying get some real life reasearch done first but have found this could be a show-stopper.

Thanks for your response.

[StartingOver08]

Someone is not giving you correct info...

Thanks Flagal -- this is not good. That co-signer thing is what is bothering us. I was told that IF it appears on her credit report you have to report it. IF it does not appear on her CR - then you don't have to report it as a debt or an asset. This co-signed loan does NOT appear on her CR.
Any comments on that? I also was told something about the DMV records for the vehicle -- I am first on the registration, she is second.

The co-signer debt also JUST got refi'd with GTEFCU AND the 2k that she owed on one of their cards (over 120 late) was rolled in to the new refi. So that new loan is just now due for it's first payment this month.

We've not talked with an attorney yet and certainly will ask these questions when we do -- was just trying get some real life reasearch done first but have found this could be a show-stopper.

Thanks for your response.

I had GTEFCU when I filed. They are cooperative in their BK dept, but if you cause a loss then you will not be allowed to have an account as a previous poster indicated. I did reaffirm a small auto loan with them that has since been paid off and they reported on time payments the entire time so to the poster that paid off her vehicle through them, contact them to make the corrections.

As to the above statement where you only have to report debt that shows on the credit report - that is not correct. The filer has to list all of the debt owed and all of their assets. There is no exception for debt listed on or off the credit report.

The Trustee will check DMV for vehicle registrations, at least mine did. You do not want to leave any information off of the BK filing.