Author Topic: Credit Union Loan  (Read 193 times)

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Shylock

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Credit Union Loan
« on: March 19, 2015 07:17:32 PM »
A collection agency contacted me about a line of credit / overdraft protection from a small local credit union. The CA said the credit union will seek a judgement soon since the loan is close to the SOL. I looked up the credit union's legal activity in different so-cal counties and they have filed several lawsuits in the past.  The documentation the CA sent me seems very thorough.

Loan Amount: Around 1K

Anybody have any success negotiating credit union debt?

Brunothe JDBKiller

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Re: Credit Union Loan
« Reply #1 on: March 19, 2015 07:39:50 PM »
It's no different than any other kind of debt, except they have better records. Most likely they will beat you in court. For 1K I'd be looking to make some sort of deal unless you are collection proof and will remain that way.
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

kevinmanheim

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Re: Credit Union Loan
« Reply #2 on: March 19, 2015 08:01:54 PM »
I would call the CU directly and set up payment arrangements to avoid the lawsuit.

If they sue, you will be liable for attorney's fees and interest, plus there will be a judgment on your credit report.

Shylock

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Re: Credit Union Loan
« Reply #3 on: March 19, 2015 09:34:30 PM »
I agree with what you guys are saying. The attorney they use is also experienced. The attorney has practiced law for over 30 years, has won industry awards related specifically to credit union collection practices, and went to Stanford undergrad. This versus some of JDB attorneys I've looked up on the BAR website that have just graduated from 2nd tier law schools.

Do I have any chance of negotiating a reduced one-time settlement amount?

kevinmanheim

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Re: Credit Union Loan
« Reply #4 on: March 19, 2015 10:36:24 PM »

Do I have any chance of negotiating a reduced one-time settlement amount?
Do you have the cash?

If so, they may consider a reduced amount. However, you may find that the CU bans you.

Personally, I would make the credit union whole, even if it takes a year or two.

Shylock

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Re: Credit Union Loan
« Reply #5 on: March 19, 2015 11:27:41 PM »
They closed any accounts I had with them when they declared the loan in default. I'm assuming they've banned me on any future accounts. Why would you personally make them whole? Thanks in advance for your advice.

kevinmanheim

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Re: Credit Union Loan
« Reply #6 on: March 19, 2015 11:29:19 PM »
Why would you personally make them whole?
Because they are a small, local credit union.

CleaningUp

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Re: Credit Union Loan
« Reply #7 on: March 20, 2015 01:25:59 AM »
Small, local credit unions tend to be pretty determined to get their money back.

Why?

Because they are both small AND local.

Best to get into an agreement you can live with now instead of having a payment regime imposed on you by a court.



The Litigator

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Re: Credit Union Loan
« Reply #8 on: March 20, 2015 01:29:13 PM »
Why?

They will never do business with you again. I would just move on and call their bluff for $1k.
I am not an attorney. Whatever I say is from personal experience.