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Credit Union Visa gone to collections

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Hello all, we're in the midst of Dave Ramsey'ing our way out of debt. Baby steps...

My husband entered our marriage 20 years ago with two loans at our local credit union: a visa and a personal loan. Over the years, they more than got their money back. This is interest. 

 

We had been making minimums on both, when suddenly the Visa disappeared from our online account. A few weeks later, the credit union called and asked us to pay in full ($5200). I told them I couldn't do that, and questioned why they would do this, after all we were at least making minimums before. I told them we'd have to pay off the other loan first (we have about $1000 left), then we can start stockpiling for the visa. 

 

Now it's gone to collections. I haven't talked to them yet.

Shall I stockpile a fraction of the $5200 and then go back to them and make an offer? 

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What is the rest of the story...it sounds like the actual statement minimums were NOT being paid in a timely manner.  That is the only reason that even a memberlicious entity would have closed and demanded payment in full (unless you had defaulted on ANOTHER product with the same entity since credit unions cross-collateralize.

 

DR shenanigans get A LOT of people in trouble.  

 

You ALSO need to be aware that MANY CU's are quick to move to litigation.  They have members to whom they are responsible and so they are not willing to simply write off an account since that impacts ALL of the members...

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On 1/8/2020 at 1:48 AM, bluskeyz said:

Hello all, we're in the midst of Dave Ramsey'ing our way out of debt. Baby steps...

My husband entered our marriage 20 years ago with two loans at our local credit union: a visa and a personal loan. Over the years, they more than got their money back. This is interest. 

 

We had been making minimums on both, when suddenly the Visa disappeared from our online account. A few weeks later, the credit union called and asked us to pay in full ($5200). I told them I couldn't do that, and questioned why they would do this, after all we were at least making minimums before. I told them we'd have to pay off the other loan first (we have about $1000 left), then we can start stockpiling for the visa. 

 

Now it's gone to collections. I haven't talked to them yet.

Shall I stockpile a fraction of the $5200 and then go back to them and make an offer? 

 

Something is missing here.  As long as you were making the timely minimum payments due, they will not accelerate the loan and demand immediate payment in full.  

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