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Old stuff keeps rising up daily!

Regular Contributor

Old stuff keeps rising up daily!

Today I decide to go open a new checking account at a credit union, to get away from BOA.  Unfortunately, the new CU merged with an old CU, where I had an auto loan that got repossessed in the 90's.  There is a balance that was charged off.  They won't let me open a checking account unless I set up direct deposit and a payment arrangement.  Well, I said I was not comfortable with depositing my whole paycheck there, which they understood.  So, we agreed on a savings account, direct deposit agreed upon amount of payment, have the small payment taken out every month.

 

Since I had to make a $5.00 deposit to open the account, and had no cash, I left to go get some from BOA.  But upon thinking for a second, thought that if I made a payment it would reset the SOL.  I don't mind paying them off, but will not have the cash to PIF.  I am NOT however, willing to get sued.  At the time of the charge off, I was on disability and my checks were not garnishable.  Now I am retired, and they are.

 

They would probably agree to put in writing that as long as I continue making payments they will not try to sue me, but not sure that I would even trust that.

 

This CU handles their own mortgages in-house and they do not sell them.  I ultimately want to get a mortgage from them.

 

Advice?

Message 1 of 4
3 REPLIES
Moderator Emeritus

Re: Old stuff keeps rising up daily!

IMO, any chance to pay off old debts the better. YMMV on your state's laws as to whether a payment resets SOL. If you opt for payments then don't stop until paid.

Message 2 of 4
Highlighted
Regular Contributor

Re: Old stuff keeps rising up daily!

I agree with you llecs.  I want to pay it off, I just don't want to get sued in the interim when I have an almost clean credit report.  Although I guess a clean CR means nothing if you already defaulted on a loan at the place you want the mortgage from.  (and rightfully so)  ;o)

Message 3 of 4
Moderator Emeritus

Re: Old stuff keeps rising up daily!

If concerned they might break the agreement, definitely get it in writing.

Message 4 of 4