A clerical error at the New York Department of Motor Vehicles did not invalidate a Michigan Credit Union’s lien on collateral pledged as security.   Norway Community Credit Union issued a loan to debtors secured by their Chevrolet Corsica automobile.   [T]he credit union, located in Michigan, properly perfected its security interest in the vehicle […]

In Cincinnati Central Credit Union vs. Yuvonne Goss et al., this Ohio court noted that this case presents a common occurrence in the world of banking and one which the courts can resolve equitably. Here, one Terrence Fitzgerald made payable his check for $4,000 to New Look Auto Trim and Upholstery and delivered it to […]

The Fair Debt Collection Practices Act (FDCPA) prohibits a debt collector from communicating with third parties, such as a debtor’s employer, and conveying information concerning the debt.   Here, an attorney sent a letter to debtor demanding payment to be made within 72-hours, and sent a copy of the letter to debtor’s employer.   The […]

Court rules credit card debts not listed in bankruptcy schedules were not discharged.  Here, debtor filed bankruptcy against her creditors and inadvertently failed to list NCNB National Bank of Florida. The bank had no knowledge of the bankruptcy filing. Three years after the debtor’s discharge in bankruptcy, debtor petitioned the court to reopen the case […]

Credit Union Board Member and Manager Pledged Embezzled Funds as collateral for Credit Union loan.    Rebecca Caldwell was the manager, secretary and treasurer of Avondale Mills Bevelle Employees Federal Credit Union. She also served on the credit union’s Board of Directors. Caldwell took a blank Certificate of Deposit from the credit union and directed […]

In this case, the U.S. Bankruptcy Court for the District of Rhode Island held that Equitable Credit Union acted properly when it repossessed debtor’s mobile home after the bankruptcy court discharged debtor and the bankruptcy stay had been lifted. The debtor borrowed money from the credit union and granted a security interest to the credit union in his […]

In this case, the court upheld a lower court ruling in favor of the credit union. Here, debtors McClellan and Hoyt, were, respectively, the president and secretary of Calistoga Court Club, Inc. Calistoga applied for and received a loan for $30,420 from a predecessor in interest to Mountain America Credit Union. The loan went into default and […]

A Supreme Court of Rhode Island opinion held a credit union liable to its member for the credit union’s negligent misrepresentation to the member regarding life insurance on the member’s loan.   …[H]ere, the Court held that the credit union’s loan officer had misled the debtor upon inception of the loan by representing that there was life […]

This case held that a credit union’s “freeze” on a bankrupt members’ account violates the bankruptcy court’s automatic stay if the member’s loan secured by the deposit is not in default. In this case, the debtors previously borrowed funds from the credit union and granted to the credit union a security interest in their deposits […]

Court dismissed a suit brought in this action against a credit union for discharging its President and CEO. In this case, Nevada Federal Credit Union held a regularly scheduled meeting and voted 5-2 not to renew the employment contract of Robert Street, its then President and CEO. After obtaining legal advice, a second meeting was […]