NFCU collections not reporting

[Flossininmy64]

I have a question regarding 3 accounts I have with NFCU. An NFCU credit card with a 17k limit, a personal LOC of 15k, and an auto loan. The auto loan is currently in good standing; however, the credit card and LOC we’re both charged off back in 2015. I have received letters from NFCU about settling the CC and LOC accounts for less than the amount owed but have never been able to act on them due to limited income. Fast forward to today, I’m just noticing that those NFCU accounts that are charged off are not appearing as collection accounts on my credit reports and when I log in to the NFCU website to pay on the auto loan each month, it no longer reflects those 17k and 15k balances I owe. What will ultimately happen with my relationship with NFCU and my credit future with others? Thanks.

[Anonymous]

I have an old CO with them. In my experience they never sold the account to a CA but did offer settlements directly. They are very vindictive and do keep reporting status every month to keep it fresh. If the CO accounts are missing from your report I would consider myself extremely lucky and not wake the sleeping giant.

As an aside if you have credit accounts with NFCU I would strongly recommend against having any sort of deposits with them. A few years ago they settled with the CFPB for (among other things) raiding checking accounts of members behind on credit card payments to make payments without consent. I remember being told by a rep that “if you owe us money and we look in your checking account and see that you have the money then that money is ours”, even if that means you now can’t make rent. As an added insult, in my case they even applied the money they owed me from the CFPB settlement as a “payment” to my 4 year old CO account.

[Flossininmy64]

Thank you, arbitrary! I’m just paying monthly on my auto loan and keeping quiet. Vindictive for sure!

[Remedios]

Hi and welcome to both of you 

I am not sure how CUs operate in those situations, but i am sure other members will be able to address that part 

I just wanted to address the "vindictive" part. They are not. They are very accepting and welcoming with rebuliders. 

You owe them money. Them trying to recover it is hardly "vindictive". 

Good luck! 

[Anonymous]

Call it what you want but in my experience NFCU is definitely not pragmatic nor results oriented in how they go about recovering their money. I had 2 cards with roughly the same balance go bad at the same time: NFCU and a BofA. The difference in how they handled it was night and day.

NFCU raided my checking account causing my rent check to bounce (woohoo more fees!) and offered 6 months of reduced minimum payments with deferred interest (still at the 29.99% default rate) in exchange for closing the account and going through a demeaning “budget analysis” where they went over my expenses and determined that I needed to cut back on (no joke) groceries. Foolishly I agreed to the reduced payments and pushed out my eventual DOFD by half a year. After the 6 months the minimum payments went back up and I was told I couldn’t get reduced payments again for another year. Can’t afford it? Tough luck.

So what about BofA? With one phone call at 30 days late they offered to close the account and put me on a 5 year repayment plan and fix the interest rate at 4.5%. 5 years later they had every cent back with interest.

BofA looked at the situation and figured out how to get its money back. NFCU looked at the same situation and decided it was a lost cause.

[RobertEG]

If the creditor is now stating that there is no longer a debt balance with them, that is pretty clear suggestion that they have, in fact, sold the debt.  

The new owner can report their collection at any time, so it could pop up.

I would suggest calling NFCU and making inquiry as to whether they do, in fact, still own the debt.  If so, paying them now may preclude any addtion of  a new collection.

Until you have resolution of who currently owns the delinquent debt, you are kinda flying in the dark as to how to deal with future actions in attempt to collect the debt.

[simplegirl]

I have to agree they are very vindictive. I would not trust them but since you have another product with them I would not ignore it either.