In this case, the court dismissed a wrongful discharge action against the credit union.   Here, P. Douglas Maier filed suit against the credit union alleging that he had been terminated from his employment at the credit union due to the fact that he is one-quarter Native American. Maier was initially employed at the credit […]

Here, the bankruptcy debtor was employed by the First Heritage National Bank. Prior to debtor’s employment at First Heritage, he was employed at an affiliated bank as a loan officer, supervised employees, approved customer checks and generally managed the day-to-day business of the bank. The debtor-employee borrowed money from First Heritage on several occasions.  Although all of […]

In the case of the Minnesota League of Credit Unions v. Minnesota Department of Commerce (Supreme Court of Minn., Case No. C7-90-2054), the Minnesota League of Credit Unions, hereinafter referred to as the “League”, challenged a legislative restriction on any credit union promoting and soliciting membership in eligible groups entitled to credit union membership. Historically, […]

In this case, a member of Alpine State Bank stole checks from his employer.  He then placed a stamp on the reverse side of the check indicating “for deposit only” to the member’s account. The bank processed each deposit and the member continued to make additional deposits of misappropriated checks over a sixteen month period, […]

False Credit Union Loan Application results in nondischargeable debt for Credit Union. Here, debtor applied for several loans at the Credit Union, and on all but the last application, the debtor listed a mortgage debt on her residence. Each of the loan applications were denied due to an unacceptable debt to income ratio, except for the […]

In the case, the credit card issuers sought to determine that the Chapter 7 debtor’s cash advances were nondischargeable. Here, debtor incurred more than $11,000 in cash advances on his Chevy Chase Visa card and another $5,000 on his Citibank credit card within ten months prior to filing for bankruptcy. The debtor was current with his […]

In this case, the Bankruptcy Court denied the Debtor’s Discharge due to debtors failure to maintain records under Section 727(a)(3) of the Bankruptcy Code. Section 727 exempts from discharge any debtor who has: . . . failed to keep or preserve any recorded information, including books, documents, records, and papers, from which the debtor’s financial condition or business […]

Credit Union Violates Fair Trade Practices Act in collection actions against debtor.   The Internal Revenue Federal Credit Union granted a loan to Patricia Johnson. The loan went into default and the credit union sent the matter to a collection agency for further action.   The collection agency sent a demand letter to the debtor, […]

The court found that a former employee of ENT Federal Credit Union (ENT) experienced sufficient stress in her position at ENT to warrant a finding that the employee’s disability was compensable. In this case, the employee (Paterson) worked for ENT for 14 years without incident. She was a highly regarded employee. Management, however, decided to […]

Here, debtor applied for and received a loan from Shawmut Bank. Debtor’s loan application represented that the debtor was the sole owner of certain real estate; in fact, the debtor’s wife was also titled on the property. Debtor filed an individual Chapter 7 bankruptcy and listed the bank’s debt in the bankruptcy schedules. The bank […]