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  1. #1

    Exclamation Credit Union's Breach of Contract

    I have a complicated problem and I am not sure what I should do about it. I have been in banking/finance for 5 years now and I have always had good credit. I bought a Toyota Celica GT in 04 at 7.5% interest and a year or so later I saw a Credit Union advertising 4.9% for 04 and 05 models so I decided to go ahead and refinance. I was currently working for a different Credit Union at the time and I pretty much knew the routine so I had asked about getting the payoff information and I was informed that they had to call and verify that information for themselves. I signed all the documents and went about my way thinking I was saving some money. Three months into paying this new lender I get a call from the previous lender stating that I was going into collection status on my auto loan. I contacted my Credit Union and they informed me that they would get it taken care of and would just roll it into my current loan. They took all the information from me and told me they would handle it. Another couple of months go by and I receive another call stating I am still deliquent on my loan. I contacted them again and they again said that they would get it taken care of. Shortly after I receive a letter stating that failure to provide proof of ownership (title) caused them to change my interest rate to 12% for an unsecured loan. I went back and forth with them about the error all the while them saying they were taking care of it. I finally received a letter stating they had recieved my title and had reinstated my original agreed upon rate. After a few more weeks went by I thought I should call just to make sure and when I did I was informed that they did not have my title and I was still paying 12% for the loan. Then it got to the point where I couldnt get ahold of anyone and no one would call me back. Finally almost a year to the day I worked it out with the original lender, paid the remaining balance myself and recieved the title free of lien. I then contacted the Credit Union about refunding the interest due to their error and was informed that they would not so I told them they would not recieve another penny from me until they honored the original agreement. That was over a year ago. They sent me some letters stating they were going to file judment against me and so on so I contacted a legal aid who told me not to give them the title and that they had just won a case against that same credit union for a like instance. I didnt really even think much else of it until I saw my credit report a few months ago. I had dropped 200 points due to this loan which they were reporting as an usecured 20K chargeoff. I contacted their attorney liason told him I had no problem paying for my car if they would just honor the original agreement. He started threatening to sue me when I asked him about the consumer rights laws and then I asked him to fax over the section of the contract I signed stating they could not pay off the original loan and change the interest rate-which of course he never sent and has still not filed anything against me.
    so now my credit is shot, i've got a $20K unsecured chargeoff and car not worth 5K because its been wrecked and am looking at either correcting this by hiring a lawyer or filing bankruptcy. I am lost. Please help.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Credit Union's Breach of Contract

    You need to explain that better, and more concisely.

    You had a loan from the original lender. You paid that off at some point.

    You got a loan from the second lender. What did you do with that money?

  3. #3

    Default Re: Credit Union's Breach of Contract

    Okay,
    I refinanced with a FCU for a better interest rate. The FCU's payoff check sent to the original bank was short. It did not close out the loan. Due to the error on the FCU's part the original bank held the title to my car and I was charged a higher rate because the FCU did not recieve the title. After alot of back and forth, I paid the original bank what was short and recieved my title. The FCU refused to credit me back the high interest due to their error.

  4. #4
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    Default Re: Credit Union's Breach of Contract

    So you didn't borrow enough money to pay off the original loan. How was this the second lender's error, and not yours?

  5. #5

    Default Re: Credit Union's Breach of Contract

    Because I asked them if I needed to get the amount and I was told THEY had to do it. Then I was told they would correct it several times by just rolling it into the loan and THEY didnt. I was charged extra interest on top of a default on the previous loan (which was paid perfect until this) due to THEIR error and IM not paying for it. I will gladly pay what I did borrow at the AGREED interest, no problem.
    And talking with their attorney liason, THEY KNOW they did something wrong because its been over a year, and they jump and bark when I say attorney... Why havent they sued me yet?
    I think I should report them to the Better Business Bureau... someone said State Attorney General's office...

    I dont know. They NEVER honored the contract by not paying off the original loan to receive the title... and now are charging me. I just dont see how thats legal...

  6. #6
    Join Date
    Sep 2005
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    98,846

    Default Re: Credit Union's Breach of Contract

    "Because I asked them if I needed to get the amount and I was told THEY had to do it." - What does that mean? It seems obvious that if you didn't borrow enough to pay off the loan, the second lender is not going to make up the difference out of its own pocket.

    They may have done something wrong. I just can't figure out what that would be from your posts.

    You don't seem to have identified your state, and laws are different in each state. There's no reason why you can't file a complaint with your state's AG's office. The BBB will only be interested if this lender is a member.

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