Navy Federal Credit Union

[Eppie1983]

Hey all,

I just called NFCU to see about getting the bankruptcy code taken off my account now that mine was discharged and even off my credit report. The woman I talked to on the phone basically told me that because I "burned" them in the past it would always be there. That put me into a fit of rage and I wont be using them for anything anymore ever. Sounds like I would never get any accounts with them ever again now that I have burned them this time. Anyone else have that response and were any of you able to get an account with them after bankruptcy? Thanks and hope everyone had a great holiday weekend.

[JoeRockhead]

It's fairly well known that NFCU won't extend any more credit to anyone that has burned them in the past, unless, and until they are paid back they won't even consider it.

[Cowboys4Life]

"Anyone else have that response and were any of you able to get an account with them after bankruptcy?"

I filed BK in 2018 and did not have NFCU account(s) then.  A long forgotten personal loan with a $632 balance from the 80s to NFCU was IIB by NFCU on their own.  Several years after discharge they did allow me to open checking and savings but no credit.  Not even a secured card.  I confirmed with their BK department that while the loan was long past SOL for anything and didn't have to be IIB by them or me and while legally they had no avenue to collect it until it was cleared up I would get no new credit with them.  I paid the balance and a few months later was given an unsecured credit card with a small limit.  Recently they increased it dramatically on their own without my asking for a CLI due to my excellent management of the account.  

As the other poster said:  NFCU is known for their hard core policy that as long as you owe them money regardless of the reason they will not issue new credit.

[GZG]

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@Eppie1983 wrote:

Hey all,

I just called NFCU to see about getting the bankruptcy code taken off my account now that mine was discharged and even off my credit report. The woman I talked to on the phone basically told me that because I "burned" them in the past it would always be there. That put me into a fit of rage and I wont be using them for anything anymore ever. Sounds like I would never get any accounts with them ever again now that I have burned them this time. Anyone else have that response and were any of you able to get an account with them after bankruptcy? Thanks and hope everyone had a great holiday weekend.

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pay them off in full and they will gladly offer you credit again, assuming your post bk credit is good 

is that a worthwhile investment? probably not, but if you want it, the option is there. 

[MileHigh96]

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@Eppie1983 wrote:

Hey all,

I just called NFCU to see about getting the bankruptcy code taken off my account now that mine was discharged and even off my credit report. The woman I talked to on the phone basically told me that because I "burned" them in the past it would always be there. That put me into a fit of rage and I wont be using them for anything anymore ever. Sounds like I would never get any accounts with them ever again now that I have burned them this time. Anyone else have that response and were any of you able to get an account with them after bankruptcy? Thanks and hope everyone had a great holiday weekend.

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It's not just NFCU, almost without exception, credit unions will never extend you credit once you have burned them in BK unless and until you pay what you owed them.  There may be some exceptions out there, but I don't know of any.

[Lurker22]

I will say NFCU is very thorough - I wasn't a member when I filed my 13 but became one shortly there after, about 1/2 through my 13 all of a sudden the BK Banner the OP references appeared, I called to inquire since I didn't IIB them and was informed the banner would remain while the 13 was active and I could not obtain any credit (but they did provide me with an nRewards card about a year later) but since I hadn't IIB'd them it would come off after discharge and it did.

As mentioned above, the majority of CU's have a similar rule, once they incur a loss they will never issue credit again (most will close your account but NFCU doesn't go that far) - also as mentioned the OP will need to decide if it's worth voluntarily paying them back in full or not (I IIB'd the Delta CCU - when I inquired about repayment their BK department just laughed and said it woudnl't make any sense for me to do it but they'd gladly accept the $ and I'd be in good standing again... they were right, the benefits just wounldn't outweigh the repayment so I remain unable to have any accounts with them) 

[cashorcharge]

Credit Unions, unlike banks are made up of members...so you didn't just burn NFCU, you burned the collective members of said CU...so it is 100% probably that a CU will not reissue credit to you in the future until you make the membership whole by repaying your obligation.  While, like banks they suffer losses and write things off...they do not allow themselves to be in that position a second time.

[dubpeezy]

Yea, NFCU will not extend credit after being burned in BK. Unfortunately, I burned NFCU on a couple of credit cards in a BK in 2017. I have rebuilt my credit and there are only a couple of stragglers on my EQ credit report that will age off in a couple of months. The stragglers...The NFCU credit cards. They still constantly update and report the balance owed. It's the only thing messing up my score due to it messing with my my utilization (at im 100% utilization due to the NFCU reporting). They won't lend to you AND they will inflict maximum damage until paid or it ages off your report. Thank goodness that is only a couple more months for me.

update: well, same day I posted this the negative NFCU items aged off my report😂 finally clear of bankruptcy and no more negatives. Christmas came early!

[brendini]

I am curious:  Why did you leave the balance reporting on your credit report? 

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@dubpeezy wrote:The stragglers...The NFCU credit cards. They still constantly update and report the balance owed. It's the only thing messing up my score due to it messing with my my utilization (at im 100% utilization due to the NFCU reporting). They won't lend to you AND they will inflict maximum damage until paid or it ages off your report. Thank goodness that is only a couple more months for me.

update: well, same day I posted this the negative NFCU items aged off my report😂 finally clear of bankruptcy and no more negatives. Christmas came early!

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If disputes didn't remove it, then filing a complaint with ConsumerFinance.gov would have held them accountable for violating the requirement to report a zero balance if it is discharged through BK. 

[dubpeezy]

Ahhh...the reason they were able to report is because I filed Chapter 13. I made payments for a few months , then gave up. The case was dismissed (not discharged), so the stay was lifted and the creditors could technically resume collection activities.