In this case, Capital City First National Bank held a properly perfected secured interest in the debtor’s Mazda vehicle. The debtor filed a Chapter 7 bankruptcy and, although he owed more than $10,000.00 on his loan to the bank, he did not reaffirm that obligation or redeem the collateral. The debtor did, however, continue to […]
Archive for National
Credit Union Breach of Contract
Tom Winfree filed a complaint against Educators Credit Union (hereinafter ECU) and its then wholly-owned Credit Union Services Organization of Middle Tennessee, Inc. (hereinafter CUSO), for lost insurance commissions resulting from defendants’ alleged breach of contract, unfair competition and tortious interference with Plaintiff’s other contracts. The facts are undisputed: Plaintiff, Tom Winfree, entered into a “Memorandum […]
Loan Application: Unreasonable Reliance
In this case, the debtor borrowed substantial funds from Barnett Bank of Marion County as a long time customer without any account problems. The debtor’s continued good terms with the bank allowed him to obtain several loans. Each time the debtor borrowed money, the bank required the debtor to complete a new financial statement disclosing […]
Bank Violates Truth in Lending Act
Security State Bank of Hamilton issued a loan of nearly $17,000 to Jerry and Henrietta Marshall in exchange for the Marshall’s pledge of a security interest in the debtors’ new car. Debtors signed the promissory note and pledge of security. The bank’s personnel, however, failed to identify the pledged security on the Truth-in-Lending disclosure. Debtors’ […]
Fair Debt Collections Practices Act Violation by Attorneys
Here, in this case, the U.S. Federal Court of Appeals held that a collection attorney violated the Fair Debt Collection Practices Act (FDCPA) by writing a letter to the debtor stating that the debtor had failed to comply with payment arrangements. The creditor obtained a judgment against the debtor and the debtor was to make $20.00 […]
Student Loan: No Undue Hardship
Here, debtor failed to prove “undue hardship” in order to obtain a discharge in bankruptcy for his student loan. This debtor owed less than $1,800 on a student loan at the time he filed a Chapter 7 bankruptcy and sought to discharge the loan and extinguish that liability. A debtor may discharge a student loan in […]
CU Employee & Unemployment Compensation
In this case, Janet Boyles was employed by Energy Family Credit Union as a loan processor. Boyles was discharged from employment and applied for unemployment compensation benefits. The Wisconsin Department of Labor and Industry ultimately denied the former employee’s request for compensation for the first seven weeks, and found that the loan processor was discharged […]
Student Loans: Preferential Treatment Prohibited
 The Bankruptcy Code provides, in part, that a student loan issued by a nonprofit institution, such as a credit union, and insured by the federal government, shall not be discharged in bankruptcy, absent a showing by the debtor(s) of true hardship. The Bankruptcy Code further provides that a Chapter 13 repayment plan may not unfairly […]
Nondischargeable Debt: Fraudulent Loan Application
Fraudulent loan application results in Nondischargeable debt. In this case, two debtors applied for and closed on a mortgage with American General Finance, Inc. (hereinafter “American General”). The debtors represented to American General that they only had one mortgage on their residence. American General intended to grant the debtors a loan secured by a second […]
No Credit Union Liability – Credit Life Insurance
In this case, the estate of a deceased credit union member brought suit to recover life insurance proceeds against the credit union and its group life insurer (CUNA Mutual) that issued a certificate of insurance to the member. Here, Mr. Hall applied for membership at HAPO Federal Credit Union. He completed the application, listing his occupation as […]