Credit Disability Benefits Refused

[ashleighw]

Through my Federal credit union, I purchased a vehicle 7/99, on which I took credit disability insurance from CUNA Mutual Ins. On 10/99, I was suprised when Social Security declared me disabled, retroactive to 2/98. I had worked until August 1999, and was working when I bought the car. However, CUNA said they would not pay for the car purchased 7/99 and would instead go back and pay off my previous car, which I'd already traded in 4/99!! In paying off the previous car, they saved themselves about $8000. I am now faced with bankruptcy, can't sell car (owe too much), and feel completely betrayed by credit union and insurance company, as both were uncooperative and gave different and vague answers. Credit Union is in Maryland; I now live in North Carolina. I have continued to pay the disability premium in case CUNA changes their mind. I sent all info to the Virginia Insurance Commission (lived in Richmond) in 1999; they took 9 months and denied my claim because they said I didn't have a POLICY NUMBER for the car purchased in 7/99! CUNA wouldn't give me the number, and said I'd have to get it from the credit union, who said the same thing about CUNA. So I had no number, so the Insurance Commission denied my claim in spite of my having sent them a lot of good documentation. My disability is clinical depression and fibromyalgia; this situation is certainly not helping either of them, but I am attempting to maintain a good attitude and pray for a right outcome.

 

[ALawyer]

Knowing how SSD works, it seems to me YOU claimed disability and applied for the SS disability benefits BEFORE you purchased the car and thus you were claiming you were then disabled. While the SS benefits (congratulations, fibromyalga is not something SS is inclined to pay on) may have come as a surprise, if you were disabled at the time you applied, I don't see why you are entitled to benefits as you likely made mistatements on the application. I have trouble seeing what the case is about. Sue them all in small claims court if you think you have a case.