Personal Loan at a Credit Union

[KYStepmom]

My husband and his first wife had a personal loan together through his credit union. They also had a car loan there. In the divorce he was left with the personal loan and she got the car loan. He paid the monthly payment on it in July by going into the credit union and paying it. We found out today that instead of applying the $150 to the personal loan they applied it to his ex-wives car loan. She has since July re-financed the car and paid off that loan. The Credit Union told my husband that they can't/won't do anything to fix this and if he wants to get his $150 back to be put toward the personal loan he'll have to get it from his ex-wife (not likely to happen ). They also mentioned something about the car loan being a joint account back in July, even though they were divorced and legally the obligation is hers, and therefore it isn't their fault so they won't fix it.

Is there anything we can do about this? My husband plans on pulling all of his money out of his accounts there and moving to a new bank but he'll still owe that personal loan money. We're ok with paying off the loan, plan on doing it in the next few months, but we really feel like they need to fix this. They are currently reporting him as behind one months payment to the credit bureaus because they say he is a month behind when really he shouldn't be.

Oh and we're in Kentucky if that makes a difference at all.

[jk]

First, if you are only talking about $150, it isn't worth the hassle to really get that concerned about it.


Next

They also mentioned something about the car loan being a joint account back in July, even though they were divorced and legally the obligation is hers, and therefore it isn't their fault so they won't fix it.

The divorce cannot and did not change who is responsible for the loan at the CU (per the loan agreement). The CU was not a party to the divorce and therefore, the loan stays intact. Although the divorce court told the wife she is liable for the car loan, the husbands only recourse would be to sue the wife or file a contempt of court charge if the wife had not paid the car loan.

Just the same, if your husbands loan was a joint loan, it still is. Again, the same thing with the divorvce court applies here.

[aaron]

From a credit reporting standpoint, it would be wise to try to negotiate with the bank. He can see if they will agree to remove the delinquency from his credit report as it resulted from their error. But, for the reasons jk provided, he should also be prepared to pay the $150 to bring the account current. He may be able to recover the $150 from his ex-, but I would personally find the expense of money and time necessary to try to recover it in court to be in excess of the value of the amount at issue.