Credit Union wants me to close my acct!

What is the name of your state? FL

Here's the story.....I had a personal loan (1600) with my credit union that was automatically withdrawn from my paycheck every 2 wks. I currently owe about $900 on the loan. Anyway, when they got the notice that I had filed Chap 7, they could no longer withdraw the $$ from my acct., so I continued to make the bi-weekly pmts on my own. I signed a reaffirmation agreement with them, but after having my first reaffirmation hearing for my car loan and being denied for that, there was no way the judge was going to give the ok to reaffirm a personal loan! Also, from what I later learned, this particular judge does not believe in reaffirmations. So I decided to rescind the agreement with the credit union. I sent a copy of the letter to the credit union, their lawyer and the bankruptcy court. I had a pmt. due 10 days ago, but didn't pay it. Well, I just found out today that the credit union put a hold on $45 (which is the bi-wkly pmt). I called them and they said their computer system automatically does that because the pmt is 10 days past due. I also received a late notice in the mail from them yesterday. I told her that I was not going to pay the loan and asked if she got a copy of my recession letter, which she said she did. She said that I would have to close out my acct. with them (I've been a member for almost 5 yrs) because I filed bankruptcy. I told her I would be in tomorrow to take out my money PLUS the $45 they have on hold. She said ok. I guess, what I need to know is, can they legally make me close my acct.? I've never heard of a bank doing something like that! BTW, I just open up a new account with a bank today. Sounds like discrimination to me!!!

[Elmo-1]

It is discrimination, but it's totally legal. They're allowed to discriminate by risk since that's the business they're in. If you file and it costs them money, they're not obgligated by any law to keep you on as a customer. Same thing's done everyday by cc companies.

[dave7250]

Just wondering why they wouldn't let you reaffirm a car loan. Did they give any reason?

[Ladynred]

Its entirely up to the judge in BK court. If the judge feels that reaffirming would be detrimental to your 'fresh start', then a reaff is likely to be denied. The poster's judge apparently disapproves of reaff's across the board.. and the judge is within the laws to do so.

Hi Dave,

No, the judge didn't give a reason, all he said was "there is absolutely no reason why you should reaffirm". As a matter of fact, he denied everyone....about 20 of us, one at a time. Before that, he read us our rights & told us all about the BK laws and said to all of us "why would you want to reaffirm and get locked into an agreement with a creditor, when that's what got you into this mess in the first place" After listening to him I totally reconsidered & changed my mind anyway about reaffirming. He was very honest & really stuck up for us "the people"....the creditors that were there were not very happy to say the least. After the judge handed down his ruling to me, I asked him if they could take my car and he said absolutely not, as long as you continue to pay on it. I wonder now....why do people sign reaffirms anyway....if you want to continue to pay on a loan, just do so without signing a reaffirm...the reaffim only protects the creditor!