08-13-2013 04:12 PM
My attorney failed to file my reaffirmation agreement with NFCU under my Chapter 7 filing but they did agree to the terms despite the case being discharged. However, I'm terrified that something is fishy with what they have in mind versus what I have been led to believe.
The document I received is on a PLAIN piece of COPIER PAPER. The only way I know it is from NFCU is because someone typed a line that says simpy, "NAVY FEDERAL CREDIT UNION, Creditor). It does not list any contractual / agreement information such as: the loan number, my account/ACCESS number, the VIN, the make & model of the vehicle, the interest rate, the payment mailing address, contact information, etc. In fact it doesn't even have a place on the paper for someone at NFCU to accept my signed agreement to include the person's name, title, and date.
It doesn't even list their or my recourse in the event of billing/balance disputes. In fact, they simply state that if I decide to NOT make a payment they can keep all monies paid and any priviledges extended to me would be void. Also, it doesn't list anything about once the monies are paid in full the transfer of ownership process.
This document is so NOT LEGAL in any way. Has anyone else encountered this type of situation and document with NFCU? What did you do? What was the outcome?
08-13-2013 04:44 PM
It actually sounds like a perfectly legal document that is pretty standard from most lenders (except Ford, they're jerks). I've seen a few of them.
The document is for informational purposes only, and is simply stating that despite no reaffirmation (which a judge probably wouldn't have allowed anyway) they're not going to take the car from you unless you start missing payments. Then they have the right to secure (repo) the veichicle to protect the value of the note. It's important to understant that the note is still in place against the title of the car, you're just not responsible for paying it. (In a round-about sort of way, the car is). The "priveledge" they're extending you is letting you hang on to the car... according to BK law, they really don't have to do that. Most lenders, except Ford, do that as a "courtesy" with the hope that they'll get more out of you over time than they would if they sold it at auction.
Once the note on the car is paid off, the creditor is under mandatory obligation (per the original note, which is NOT void) to release their interest in the title.
So, even though I haven't seen one specifically from Navy, it sounds perfectly normal and it's nothing to really worry about. It may even have the statement on there somewhere that says "if this debt was dicharged in bankruptcy, this is not a collection notice and is for informational purposes only". Most lenders do that, some don't. AFAIK, they really don't have to b/c it doesn't mention the loan # or balance.
So, just don't miss any payments and you'll be fine.
08-14-2013 08:57 AM
I think that document is perfectly fine and Navy Federal is trustworthy, so I wouldn't worry about it.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.