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Old 01-11-2019, 09:25 AM
 
255 posts, read 131,089 times
Reputation: 159

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Quote:
Originally Posted by mathjak107 View Post
most credit unions are not the nice guys you think they are when it comes to loans .

the cross collateralization used by many credit unions can be quite a shocker to those who don't read or understand the differences between a bank and a credit union.

When you take out a loan to buy a large item, such as a car, you give the lender a security interest in the item. This means that if you don't make your loan payments, the lender can take the item and sell it to satisfy the debt.

When you borrow money from a credit union to buy something, the loan agreement usually contains a clause that says that not only is the property collateral for the loan you're obtaining to buy it, but it will also be collateral for any other loans you take out through the credit union. That includes credit cards and personal loans.

you buy a car by taking out a loan from your credit union. The loan agreement for your car loan contains a cross-collateralization clause. you later open a credit card account with that credit union and uses it to pay for some vacations. After three years, you pay off your car loan, but you still have a balance due on your credit card.

you lose your job and stop making your credit card payments. The credit union can repossess your car and sell it to pay the credit card debt.

credit unions also have an advantage over banks in that they pay no income taxes .. in theory they are considered non profit , if you can believe that one .
Are you sure about this? That sounds awful.
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Old 01-11-2019, 09:36 AM
 
192 posts, read 65,467 times
Reputation: 423
I also bank with Chase and have had no problems with them at all. I keep the minimum balance to get everything for free but it's a pretty low number.


I do wish their investment people would quit calling us. If I wanted their services, I know where to find them.
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Old 01-11-2019, 10:20 AM
 
3,831 posts, read 2,698,559 times
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Quote:
Originally Posted by don6170 View Post
At most credit unions, members are the owners. As an owner, you should have input into how things are run. Contact the board members, attend the next meeting, etc to try to affect change, or decide to take your business elsewhere.
True, we have home and business accounts at our CU and a bank for international wire transfers, pretty much the only thing our CU can't do.

When the CU started mobile deposits, they didn't allow it for business accounts. I called the CU, they had a meeting and called me back the next day to say they changed the policy and would allow it.
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Old 01-11-2019, 01:05 PM
 
70,532 posts, read 71,041,142 times
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Quote:
Originally Posted by Jlong2315 View Post
Are you sure about this? That sounds awful.
absolutely , credit unions are notorious for it. just google it
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Old 01-11-2019, 02:06 PM
 
Location: Aurora Denveralis
7,911 posts, read 2,752,181 times
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Quote:
Originally Posted by mathjak107 View Post
absolutely , credit unions are notorious for it. just google it
As opposed to fine, upstanding, customer-conscious firms like Wells Fargo and B of A, whose list of ways to get you with fees, fines and charges fills a book, half of which is secret until you trip the line.
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Old 01-11-2019, 02:11 PM
 
70,532 posts, read 71,041,142 times
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irrelevant ... we are talking credit unions and standard policy . what wells fargo did is NOT the policy of banks in general .
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Old 01-11-2019, 02:38 PM
 
Location: Aurora Denveralis
7,911 posts, read 2,752,181 times
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Quote:
Originally Posted by mathjak107 View Post
irrelevant ... we are talking credit unions and standard policy . what wells fargo did is NOT the policy of banks in general .
Wells Fargo has been a predatory institution since I worked in California banks back in the 1970s. BofA was just a huge indifferent corporation; Wells actively sought younger customers it could gouge. That it culminated in a company-wide secret program to gouge on an industrial scale was in no way a surprise to anyone who knew the company's retail history.
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Old 01-11-2019, 02:47 PM
 
70,532 posts, read 71,041,142 times
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i agree , wells fargo deserves what they get from the fall out
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Old 01-11-2019, 04:43 PM
 
1,025 posts, read 500,326 times
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Quote:
Originally Posted by Jlong2315 View Post
Are you sure about this? That sounds awful.
This is absolutely true.

I have a friend whose wife recently died. Both of them did most of their financial business through the same credit union. Both are/were uncontrollable spenders. The mortgage was in both their names. The deceased spouse had a home equity loan and credit card, to the tune of 6 figures, in her name only. My friend figured only the home equity loan was secured.

Wrong. The credit union informed him he was responsible for the 5 figure balance on her credit card, or a lien could be placed on the house. My friend is contacting an attorney, but I don’t think it will help, from what I’ve read.
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Old 01-11-2019, 04:46 PM
 
70,532 posts, read 71,041,142 times
Reputation: 48106
Credit unions are only your friend until they are not
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