QUESTION
Is it fair for me to lose my credit union membership if I lose my property?
Asked on Jul 25th, 2011 on Bankruptcy - California
More details to this question:
I was once a member of a local Credit Union. I filed Bankruptcy and was told because they had a 2nd on my home and a boat loan that I could no longer be a member of the credit union. Ok I understand that was until I was told by several people that other people that have lost their properties are still members. My son still has his account there and they asked him to remove my name from that account. I am a Real Estate Broker in this town so I see and have access to a lot of information. The appraiser that works for the credit union also lost her property but yet not only is she still a member but she still does their appraisals. There are several other people who have lost properties and are still members. I feel discriminated against. Is this fair?
9 ANSWERS
It may not seem fair, but it is legal.
Answered on Jul 29th, 2011 at 8:39 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Credit Unions are a strange breed, and are held to different standards. If your case was the same as the others you mentioned, I'd see a lawyer and sue for discrimination (one can't be discriminated against for filing BK). However, if you surrendered your property and they took a loss, they will treat you differently. They're known for such ploys as freezing your accounts, not allowing you to do business except inside the building, not using electronic banking, etc. So check a bit into the circumstances of these others and then look to your lawyer to sue or to refer you to one who can.
Answered on Jul 26th, 2011 at 12:47 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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I cannot tell you what is fair because, like beauty, fairness is in the eye of the beholder. I can tell you that it is legal and the credit unions do it often, some more than others. I can also tell you that there are plenty of fish (credit unions and banks) in the sea and you should just go to the credit union/bank next door or on the next block and open your new account. You don't want to bank where you are not wanted. I am sure they were not giving you anything that any other bank or credit union would not give you. I do think it is a business mistake for the credit union to turn down business to punish you for the bad loans they made (a business decision) as if that were going to persuade other members from not filing for bankruptcy when required.
Answered on Jul 26th, 2011 at 10:41 AM
Glen Edward Ashman
Most credit unions have policies where if you cause them a loss you cannot be a member. You have no right to be a member in such a case.
Answered on Jul 26th, 2011 at 7:49 AM
Samuel Lee Tucker
Most credit unions have a policy that restricts membership if the member caused a loss to the credit union.
Answered on Jul 26th, 2011 at 6:36 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Usually a credit union will no longer do business with you after they have suffered a loss in your bankruptcy. You do not have a right to make them do business with you. Find another credit union.
Answered on Jul 25th, 2011 at 2:23 PM
It is common for credit unions to cancel the membership of anyone who causes the credit union to sustain a loss. Banks usually do not require their depositors to close their accounts if they cause the bank to sustain a loss, such as by not paying their credit card and filing bankruptcy. I find both policies to be fair. In general, banks and credit unions both retain the right to close the account of any depositor if they feel that it is in their best interest to do so.
Answered on Jul 25th, 2011 at 1:57 PM
Bankruptcy Chapter 7 Attorney serving Miami, FL
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Shmucher Law, PL
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Most credit unions have a boiler plate agreement that each member must sign upon opening up an account. Usually the boiler plate language states that the credit union has the right to ask the debtor to leave the credit union of he or she files for bankruptcy.
Answered on Jul 25th, 2011 at 1:27 PM
Bankruptcy Decision Attorney serving San Diego, CA
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Law Office of Daniel G. Shay
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It happens all the time. I tell my clients it is up to the Credit Union. Banks are different.
Answered on Jul 25th, 2011 at 1:23 PM