I took out a loan of 3,000 from my credit union and fell behind in payments when I became unemployed. The debt resulted in charge off status and remained with a collection agency. As of 3/09, I agreed to settle in a civil court action which I initiated, and instead of the collection agency accepting my full settlement amount, they accepted full payoff in installments of $100 monthly. I went to my credit union to inquire if I have access to my checking and savings account for direct deposit and direct payment to the debt monthly, and they have denied me access until the debt is paid in full. Can I do anything about this?
It's possible that the settlement you reached with the collection agency didn't include the credit union as a party, so any contractual liability you have to the credit union is probably still fully effective, unless the debt was actually sold to the collection agency. State contract laws can influence your position and rights. Check with an attorney for advice.
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It's possible that the settlement you reached with the collection agency didn't include the credit union as a party, so any contractual liability you have to the credit union is probably still fully effective, unless the debt was actually sold to the collection agency. State contract laws can influence your position and rights. Check with an attorney for advice.
