Please help with ? Re: charged off CC

[SDB74]

After a valain't fight my credit card with my local Credit Union was charged off. After the Chargeoff I noticed the deficiency was added to my auto loan with the same credit union even though it was a seperate account. Legal? Doesn't sound right, never heard of such in all my years of finance and management.

[SDB74]

I recently fell behind on all my debts after a valiant fight. I had a credit card and an auto loan with my local credit union which were 2 seperate accounts. After the credit card was charged off, a few months later I noticed the deficiency was added to my auto loan which was a totally seperate debt. Is this possible? Legal?

Thanils for any and all advice! 

[longtime_lurker]

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@SDB74 wrote:

I recently fell behind on all my debts after a valiant fight. I had a credit card and an auto loan with my local credit union which were 2 seperate accounts. After the credit card was charged off, a few months later I noticed the deficiency was added to my auto loan which was a totally seperate debt. Is this possible? Legal?

Thanils for any and all advice! 

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IIRC, many CU's (mine included) state that if you are in default with one account, you are in default with all of their accounts. Also, they can use the money in your account (a.k.a shares -Checking, etc.) to pay off the defaulted loan. So I think it's legal

[longtime_lurker]

11.  General Pledge of Shares:  I pledge my shares and deposits in the Credit Union as security for every advance under this Agreement. In case I default, you may apply these shares and deposits to the payment of all sums due at the time of default, including costs of collection and reasonable attorney’s fees. However, I retain full access to any and all shares on deposit not specifically pledged as collateral. No lien or right to impress a lien on shares and deposits shall apply to any of my shares which may be held in an “Individual Retirement Account” (IRA).

This is the clause of your loan that you need to look for in your loan documents.

This IS legal, I worked at MSUFCU.

Just showing you where the info is

[RushXTC]

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@SDB74 wrote:

After a valain't fight my credit card with my local Credit Union was charged off. After the Chargeoff I noticed the deficiency was added to my auto loan with the same credit union even though it was a seperate account. Legal? Doesn't sound right, never heard of such in all my years of finance and management.

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Mod Cut for an unnecessary remark.

There's already a reply in your first thread.

http://ficoforums.myfico.com/t5/Credit-Cards/Someone-please-help-with-Credit-Union-CC-Chargeoff/td-p...

[SDB74]

I'm sorry about double posts. I tried to delete and I'm obviously new. Thanks for the replies.
Mods please delete duplicate thread.

[longtime_lurker]

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@SDB74 wrote:
I'm sorry about double posts. I tried to delete and I'm obviously new. Thanks for the replies.
Mods please delete duplicate thread.

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No worries, best of luck to you!

Just a heads up, the rebuilding thread may be more useful on tips on moving on from here...I will say that CU's are usually much more understanding of situations and if you can get current you can probably at least GW the baddies off the other loan.

[gdale6]

Yes I would also say its legal, if your are current with the auto loan they are going to make you pay the CC balance in that loan before they hand over the pink slip, thisis why I never have a cc and an auto loan at the same CU.