Past BK and my local CU

[Anonymous]

In reading all the advice in these forums about CUs being a great place to build credit, I went to my local CU to open a share account and get started. They refuse to deal with me because of a BK 16 years ago when I was going through a divorce, I held a credit card and an auto loan from the CU and it was discharged as part of the BK. They said I would have to pay off the still outstanding balances before I could rejoin.

Is it legal to try to collect on a debt after it has been charged off? Odd thing is I got a car loan with them last year, because they didn't catch it, and I paid it off early. Never late. This time around they won't even talk to me. Wouldn't bother me much except they are the biggest CU in western Massachusetts and their product line up is stellar.

Opinions?

[tray]

Hi, can you try joining another credit union and see what happens.

[Anonymous]

Yes, thanks. I am checking out others in the area. There are only a few to choose from though.

CB

[Jazzzy]

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@Anonymous wrote:

In reading all the advice in these forums about CUs being a great place to build credit, I went to my local CU to open a share account and get started. They refuse to deal with me because of a BK 16 years ago when I was going through a divorce, I held a credit card and an auto loan from the CU and it was discharged as part of the BK. They said I would have to pay off the still outstanding balances before I could rejoin.

Is it legal to try to collect on a debt after it has been charged off? Odd thing is I got a car loan with them last year, because they didn't catch it, and I paid it off early. Never late. This time around they won't even talk to me. Wouldn't bother me much except they are the biggest CU in western Massachusetts and their product line up is stellar.

Opinions?

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While I'm not an attorney, I believe they can still collect. The charge-off process is basically an accounting procedure they have to do to get it off their books. It doesn't mean you don't still owe it.

People also get confused about the statute of limitations. If the SOL has passed, all that means is that they can no longer sue you. It doesn't mean you don't still owe it.

Also...another confusion comes when something drops off the credit report because the date of first delinquency has passed. That also does not mean that you don't still owe it.

Sorry. You may want to consider visiting with them about what it would take to settle the debt. Would they negotiate?

[Anonymous]

 Would they negotiate?

They won't negotiate. I think I'm going to leave this one alone. They admit that they cannot actively pursue the moneys owed because the debt has been discharged by the BK.

I'm going to explore other avenues.

CB

[Jazzzy]

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@Anonymous wrote:

 Would they negotiate?

They won't negotiate. I think I'm going to leave this one alone. They admit that they cannot actively pursue the moneys owed because the debt has been discharged by the BK.

I'm going to explore other avenues.

CB

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I apologize. I missed the BK part. I responded without all the details planted in my mind.

You're right. No, they can't collect.

They can still decline to do business with anyone they chose...and, unfortunately...that is the choice they've made with you. The one thing you might try is sort of a GW letter to their CEO. The decision can be changed from the top down.

[Anonymous]

Thanks LynetteM,

Any and all input is greatly appreciated.

CB