Here, the debtor, a physician, borrowed money from the bank and promised to secure that loan with a pledge of a $50,000 bond that the debtor could not locate at the time of the loan. The bank agreed to loan the money as long as Dr. Bercier brought in the bond at a later date […]

In this case, the Court addressed whether several employment contracts entered into between the Credit Union and its CUSO were enforceable. Here, the Credit Union desired to sell disability insurance to its members, but the regulations for federal Credit Unions prohibits any activity of this nature for profit. Hence, the Credit Union formed a CUSO […]

Debtor submitted a materially false loan application causing financial loss to the creditor, but the Court found no “reasonable reliance” by the creditor on the loan application and discharged the debt in bankruptcy. Here, the court held that creditor ITT Financial Services (ITT) had not reasonably relied on the debtor’s false loan application and the court discharged the […]

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 […]