Credit union kicks us while we're down

The BBQ Pit
1

The huz and I lost our jobs back in March–within a week of each other. Until that time, we’d been longstanding, loyal customers with our credit union, so we did what responsible consumers do: we called them to let them know what had happened and to talk about ways to prevent default on our 2nd mortgage and our line of credit.

Basically the answer to the “what can we do” question was “not much.” They were able to reduce our mortgage payments to interest only, but at $570 per month, we were still struggling to pay that. They wouldn’t do a thing about the line of credit, so we ended up defaulting on that in favor of frivolous expenses like the first mortgage, insurance, utilities and groceries.

So today I was getting ready for some job interviews I have out of town next week. Getting a haircut, printing my portfolio, maybe picking up a new skirt so I have backup in case of stains or tears. I pulled out my debit card at the salon, and it wouldn’t go through. Called the bank, and it turned out we had a balance of $0.57.

We did a little checking and found out that our bank helped themselves to the other $773 that had been there. Money we needed for things like prepping for and traveling to my interviews.

Legally they did nothing wrong. It was all in the fine print, and we didn’t have to authorize it even. But Jesus Christ! We’re trying desperately just to keep a roof over our heads while we find new jobs and these assholes take the only money we have! And most of what was in there was my husband’s unemployment check, so it’s doubly sleazy.

The huz got on the phone and raised hell, and ended up calling them assholes and motherfuckers before hanging up on them, so that wasn’t effective. I emailed the bank president and the local alternative newspaper, but I’m not overly hopeful.

So here’s a big FUCK YOU!!1!!1 to our credit union. Despite our many years of recommending them to friends and family, and the huge amount of business we’ve done with them over the years, they still felt like it was justified to steal from us.

From now on, we stuff our money in the mattress.

2

You had two mortgages and a line of credit? With two spouses working?

3

I know this ain’t MPSIMS, but do you have to kick them too?

4

I sympathize with your situation, but not your assignment of blame. You owe them money and they took what they could. Even a credit union, the friendly twin of the evil commercial bank, doesn’t operate as a charity. Stop making payments and the smiles and good will are going to dry up really quickly.

5

The situation certainly does suck, but the credit union did not steal from you. You say you defaulted on the line of credit. This means that you owed them money. They gave you money with the expectation that they would be paid back. They were not paid back. They saw that you had money in another account with them. They applied it to the debt you owed.

As I said, it does suck, and it is not a very nice thing that the credit union did. But nice does not cut it in business these days.

eta: What Vinyl Turnip says.

6

I work for a bank in Canada so the rules may be different but here it’s illegal for a bank to take an unemployment cheque. I had a client come in who was late on his visa bill and the money had been taken from his account. Once I was able to verify that the funds had been deposited by unemployment, we had to put the money back.

7

It does seem a little freaky that they could just take your funds without your permission like that, even if they do have the right to. That must have been a nasty shock. They could have at least notified you, preferably in advance.

Actually, my main thought is that it might not be the best strategy long-term for them. Job searches do require some funds, and it’s in their best interest that you get jobs. They don’t really have any way of determining what constitutes an investment in your future employment or not, though. And it apparently makes business sense for them to do this in the short term.

Sorry you’re going through all of this. I hope you and your husband find good jobs soon, and that this ends up being the low point of this time of your life for you.

8

Wow, tough room. :slight_smile:

Yes, I’m aware that the credit union isn’t a charity and that we still owed them money. But my point was more that we tried to do the right thing (work with them from the beginning) after years of making prompt and full payments, and they were not at all helpful. And then, without notice they yanked money out of our account. I know it’s not stealing, but it certainly feels that way when it’s gone and you haven’t OK’d it.

And friedo, yes, you are correct. No, it’s not the way we usually do things. It was a series of unfortunate circumstances that led us to that point. Your tacit judgmentalism is not needed.

9

Well, it could have been worse - many banks would have let your charge go through, then charge you overdraft fees, after which your balance would have been negative and you’d owe even more money.

Which I know doesn’t make you feel any better.

Good luck on the job search.

10

There was a bit on the Consumerist (which everybody ought to be reading) from a bank person about why we should all be glad for predatory overdraft practices, because… well, you’d have to read it to get the full effect.

Found it - The Consumerist is a great website but has a terrible search engine.

11

It took the banks and mortgage companies more than two years to realize that maybe foreclosing every delinquent mortgage was a bad idea, fiscally and morally.

My hope is that at some point, banks, credit unions, and other institutions will come to realize that taking their customers for every penny legally allowable is not a wise approach to business. Currently, banks make 50% of their profits from fees they charge their own customers. At some point, the outrage over this kind of profiteering will drive the market to offer other ways to bank, and the financial institutes who treated their customers like hosts ready for another parasite will find themselves out of luck.

I hope.

In the meantime, moonstarsun, I hope all goes as well as possible, that you land a job again soon, and when you do, you take your business away from the credit union which was unwilling to work with you.

12

It did drive the market to offer other ways: online banks. Most of them were tied to investment firms, and went under.

13

Um, you stole money from the credit union, when you borrowed money from them and didn’t pay it back.

14

Congratulations, Carol. I didn’t think it was physically possible to condense a volume of ignorant threadshit equivalent to the Pacific Ocean into a single sentence. I’m impressed.

15

Aren’t you glad you started this thread, moonstarssun? Now you’re a thief as well as a debtor!

Carol Stream, you’re all heart, honey.

16

Um, you’re a cunt. Your input is not needed, here or anywhere else. Fuck off.

17

Uhmm - I kinda thought reducing mortgage to interest only is a fairly decent move - you don’t really expect them to lend you MORE money, when you aren’t working and cannot pay it back right?

And yes, if I were you I would have taken all my money out in cash first, or at least put it into a place they couldn’t get at it.

Good luck on the interview though!

18

You’re not allowed to say that. You’re allowed to shit all over someone when they’re struggling, and you’re allowed to advocate molesting children, but you’re not allowed to say “Fuck off”.

To the OP - I wish you nothing but the best. If you need some help I suggest you ask Tuba and perhaps she will let you ask the dopers. I would be the first in line to donate some funds.

19

ITT: typical Conservative kindness.
Fuck off, asswipe.

20

Reminder:

[QUOTE=Restricted language in the Pit
]
The following expressions should not be directed at other posters.

cunt

fuck you and variants, e.g., go fuck yourself, fuck off and die

[/QUOTE]

Please avoid directing these expresions at other posters.
**
Gfactor**
Pit Moderator