Is it fair for me to lose my credit union membership if I lose my property? 14 Answers as of August 01, 2011

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?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Credit Unions will terminate your membership if they suffer a loss. It may not be fair, but that is how they roll.
Answer Applies to: California
Replied: 8/1/2011
Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
It may not seem fair, but it is legal.
Answer Applies to: Michigan
Replied: 7/29/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
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.
Answer Applies to: Virginia
Replied: 7/26/2011
Ray Fisher Law Offices
Ray Fisher Law Offices | Ray Fisher
No, it is not fair.
Answer Applies to: Texas
Replied: 7/26/2011
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
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.
Answer Applies to: California
Replied: 7/26/2011
    Ashman Law Office
    Ashman Law Office | 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.
    Answer Applies to: Georgia
    Replied: 7/26/2011
    Tucker Legal Clinic
    Tucker Legal Clinic | Samuel Tucker
    Most credit unions have a policy that restricts membership if the member caused a loss to the credit union.
    Answer Applies to: Mississippi
    Replied: 7/26/2011
    Law Office of Harry L Styron
    Law Office of Harry L Styron | Harry L Styron
    This is not a bankruptcy question. I suggest you consult with a civil rights lawyer.
    Answer Applies to: California
    Replied: 7/26/2011
    Law Offices of Daniel Moulton
    Law Offices of Daniel Moulton | Daniel Moulton
    There is no law that says someone has to give you credit outside of public utilities. Discrimination is another matter and you should consult an expert in that area.
    Answer Applies to: Illinois
    Replied: 7/25/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    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.
    Answer Applies to: California
    Replied: 7/25/2011
    Law Offices of Michael J. Berger
    Law Offices of Michael J. Berger | Michael J. Berger
    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.
    Answer Applies to: California
    Replied: 7/25/2011
    Shmucher Law, PL
    Shmucher Law, PL | Ofer Shmucher
    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.
    Answer Applies to: Florida
    Replied: 7/25/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Credit unions do this all time. Read the clauses in their contracts.
    Answer Applies to: California
    Replied: 7/25/2011
    Dan Shay Law
    Dan Shay Law | Daniel Shay
    It happens all the time. I tell my clients it is up to the Credit Union. Banks are different.
    Answer Applies to: California
    Replied: 7/25/2011
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