Credit Union Unfair

[rch0303]

I sold a house back in Jan of 2022. The payoff was to my credit union. I also had a credit card with that credit union that had charged off. Evidently the payoff on the house included $2,000.00 (it was not disclosed) to make a payment on the charged off credit card. It started the clock all over on the three year statute of limitations. Is there anything I can do?

[CH-7-Mission-Accomplished]

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@rch0303 wrote:

I sold a house back in Jan of 2022. The payoff was to my credit union. I also had a credit card with that credit union that had charged off. Evidently the payoff on the house included $2,000.00 (it was not disclosed) to make a payment on the charged off credit card. It started the clock all over on the three year statute of limitations. Is there anything I can do?

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I think you are confusing the statute of limitations with the 7-year time to report a late payment or chargeoff.  Since the card was paid off, the SOL doesn't apply or matter. The 7 year clock starts the date that the account first went delinquent that led to chargeoff.   So that time was not affected by the card payoff date and it can't be reset.  

[rch0303]

The 3 year is related to legal action

[FireMedic1]

They took their money owed on the CO which CU's will do. Its called Cross Collateral. Now when did the first 30 day late occur which led to the charge off status? Its 7 yrs from that month/date for fall off. No reason for SOL. Its paid.

[rch0303]

The card was not paid in full.

[FireMedic1]

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@rch0303 wrote:

The card was not paid in full.

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"Evidently the payoff on the house included $2,000.00 (it was not disclosed) to make a payment on the charged off credit card."

[rch0303]

I understand what they did and why they did it... to give them another 3 years to take legal action. My question is what if any action I can take because of the deceptive nature of their actions.

[Brian_Earl_Spilner]

So I want to get this straight, you have a charged off card with them. They cross collateralized 2000 to put towards the card, but didn't take enough to pay it off? And you believe they did that to restart the SoL, which is why you're asking if you have any recourse due to what you believe to be an unethical, at best, action? 

[CH-7-Mission-Accomplished]

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@rch0303 wrote:

I sold a house back in Jan of 2022. The payoff was to my credit union. I also had a credit card with that credit union that had charged off. Evidently the payoff on the house included $2,000.00 (it was not disclosed) to make a payment on the charged off credit card. It started the clock all over on the three year statute of limitations. Is there anything I can do?

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Wait, so you owed more than $2K but they only took $2K?    How much did you owe on the card when they took the $2K?   And how do you know that they took less than they could have taken to pay off the account only so they could extend the statute of limitations and not get their money?   Something doesn't add up here so you need to clarify.

[GZG]

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@rch0303 wrote:

I understand what they did and why they did it... to give them another 3 years to take legal action. My question is what if any action I can take because of the deceptive nature of their actions. you agreed to this when you applied for membership, applied for the card, it's not deceptive

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they should have had the right to take all of it to cover the debt?

I wonder why they didn't?