maximum time for a credit union to charge off your credit card account

[Anonymous]

What is the maximum time allowed under the law for a Credit Union to charge off your account?  Can they take over 9 months to do so?  Curious ... And if there is a legal limit, to whom do we complain?  Thank you

[Horseshoez]

---

@Anonymous wrote:

What is the maximum time allowed under the law for a Credit Union to charge off your account?  Can they take over 9 months to do so?  Curious ... And if there is a legal limit, to whom do we complain?  Thank you

---

I don't believe there is any limit; they can do pretty much as they please.

[Anonymous]

wow.  that's pretty awesome.  Banks I believe have to charge off by month 6.  Credit Unions can charge off whenever they feel like?  Feels a bit unfair esp if you are truly in trouble and they are hitting you with maximum penalty interest.  I was hoping that was not the case. 

[FireMedic1]

Creditors in the United States must charge-off revolving credit accounts after 180 days, while installment loans must be charged-off after 120 days of delinquency. If you were making payments that were less than the monthly minimum amount due, your account can still be charged off as a bad debt.

[Horseshoez]

---

@FireMedic1 wrote:

Creditors in the United States must charge-off revolving credit accounts after 180 days, while installment loans must be charged-off after 120 days of delinquency. If you were making payments that were less than the monthly minimum amount due, your account can still be charged off as a bad debt.

---

Does this apply to revolving credit accounts from all credit unions as well?

[gdale6]

---

@Horseshoez wrote:

---

@FireMedic1 wrote:

Creditors in the United States must charge-off revolving credit accounts after 180 days, while installment loans must be charged-off after 120 days of delinquency. If you were making payments that were less than the monthly minimum amount due, your account can still be charged off as a bad debt.

---

Does this apply to revolving credit accounts from all credit unions as well?

---

Yep

[Anonymous]

Wow.  well now this creates a bit of perplexing situation.  What if a credit union has gone 8 or 9 months and has NOT charge off the account?  Is there a governing body that you can file a complaint with?  Is it illegal to keep an account from charging off for so long?  

Trying to get an answer from the CU as to when they are going to charge off is also a mystery since they do not provide this information.  

It appears that this may be a ploy by the CU to simply string the debtor along and to rack up as many penalties as possible, am I right?  I wonder if there are any other "victims" of this ploy out there.  Maybe we can compare notes....

[dragontears]

I am a little confused by your question. It appears that you are under the assumption that once a lender C/O an account that they can no longer charge interest/fees?

Charging off an account is a bookkeeping measure by the lender and has nothing to do with the fees and interest you can be charged, those items are determined by the contract/state/local laws.

[FireMedic1]

When the board deems the loan a loss, they must charge off the loan to the ALLL account in compliance with full and fair disclosure requirements of Part 702 of NCUA Rules and Regulations. The credit union’s charge-off policy should address loans presenting a high probability of loss. Examples include the following:

A non-performing loan more than six months past due without a payment of at least 75 percent of a regular monthly installment within the last 90 days.

https://www.ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/loan-charge-guidanc... 

[Anonymous]

well, according to Amex, and it is possible that is unique to that one bank, they cannot charge interest/penalties once the account is charged off.  I'm not sure if that applies to all charged off accounts or to all situations.  

I'm just worried why a CU may take well past 6 months to charge off a card.  It seems unusual.  It may harm the debtor esp if the debtor cannot make payments and has to make a determination of which way to go.  

Based upon NCUA language, it appears that the CU may not have followed the rules ...