BIG Navy Federal charge-off, which way to go?

[centex]

9 hours ago, ON-MY_way said:

After several calls it's a no-go on receiving in writing what they say on the phone.  "All accounts are separate."  "If you settle as agreed, then no outstanding debt for this account."  "NFCU does not cross collateralize."

 

1) calls from you or calls from a licensed attorney?

2) Calls are generally not going to be binding

3) There are reasons why Agreements need to be reduced to writing

[ON-MY_way]

9 hours ago, cv91915 said:

Welcome to the lying, abusive world of this sh1tty kredit youynun.

 

 

 

 

 

 

 

 

I know!  I couldn't believe every person in their collection dept has the audacity to say, "We don't cross-collat" when it's clearly in loan terms and mentioned repeatedly throughout internet searches.  I guess when you cross NFCU you see a different side of things.  I tried calling to get to loan/underwriting dept.  Once there I gave my member number and put on hold... minute later... collection dept on the line. "Mr OMW, we do not cross collat loan products."

 

[ON-MY_way]

9 hours ago, PotO said:

 

If you accept their offer to settle the charge-off, I doubt they will attack the title on your car.  Once you pay the settlement agreement, you owe them nothing.  If you owe them nothing, they have no reason to go after your car.

This is basically what the dept. head says (He leaves everyday at 4pm while the dept is open till 6pm... he MUST be the head honcho 😄) .  Once settled, all collection activity will cease as both parties agreed to the settlement amount.  

 

If they won't put it in writing, get it on tape.  You know where at the beginning of all your calls they say "This call may be recorded and monitored"?  I take that as them giving me permission to record the call.

I was thinking about that after reading another forum thread on similar issue.  I'll work on a simple opening script of my own.

 

One thing about your situation has me wondering ... you owe them $25k on a defaulted credit card from 2018 and you still have a credit card with them in good standing??  That seems strange.  

Yes, they used that as example when talking on the phone about each loan product is separate. $3k CC was my first with them, then a year later I was approved for $25K cc.  I actually use the 3k cc for everyday purchases and carry a balance on it... at one point it was maxed out too but I've paid it down...never late once.   I wonder sometimes if I keep a 0 balance on it and rarely use it if they'll just one day close the account.  hmmm.

 

[ON-MY_way]

5 hours ago, Toast73 said:

I'm in the same pickle with NFCU, except the balance is $5800-ish.

 

Problem is, they were IIB.

 

From what I have read in various places online, you will never get an NFCU card, CLOC or personal loan unless they are PIF.

 

If there is evidence to the contrary (like offering to settle in exchange for erasure of debt), please do tell me.

Yep, if you 'settle for less' it will reflect this on your credit reports and like someone mentioned earlier in this thread, you're pretty much dead in the water for any other loan or credit products going forward.  Sure you can apply but somewhere along the processing (after the hard inquiry) you'll get a denial with the reason, "You caused NFCU a loss".   If having a future relationship with NFCU is worth $5,800 then work out a plan.  It's my understanding they don't set a time frame to  pay off charge off, just don't miss any agreed payment plan you setup with them.  

[ON-MY_way]

4 hours ago, centex said:

1) calls from you or calls from a licensed attorney?

2) Calls are generally not going to be binding

3) There are reasons why Agreements need to be reduced to writing

I spoke with a bk atty about my case...paid his consult fee.  He basically was honest and said he charge $600 per debt and since he felt I negotiated a great offer with NFCU there wasn't much he could do that I can't do on my own.  Could NFCU get 'nervous' when an atty contacts them and rescind the settlement offer?   

[ON-MY_way]

I have the settlement funds sitting in a NFCU Business LLC account.  I plan to call NFCU Collections and remind them this phone call is being recorded.  Get the statements on no adverse effect on other NFCU accounts after settlement and then do a Member-to-Member transfer (instant) from biz account to personal account so they can withdraw the funds while on the call and  put this matter to rest. 

How does that plan sound?

Edited November 12, 2020 by ON-MY_way

[ON-MY_way]

10 hours ago, PotO said:

 

One thing about your situation has me wondering ... you owe them $25k on a defaulted credit card from 2018 and you still have a credit card with them in good standing??  That seems strange.  

I was curious on why you felt this way.  Have you seen other instances that differ?

 

[StarkRaven$]

15 hours ago, PotO said:

If they won't put it in writing, get it on tape.  You know where at the beginning of all your calls they say "This call may be recorded and monitored"?  I take that as them giving me permission to record the call.

Smart.

[PotO]

6 hours ago, ON-MY_way said:

I was curious on why you felt this way.  Have you seen other instances that differ?

 

I have never seen an instance such as you have described, especially with Navy.  In fact, your story smells extremely fishy.

 

It's virtually impossible for any credit card issuer in America to let you keep an active credit card with them when you have another with them in default, especially for $25k.  Hell, even were the default for $25 they would close down all of your accounts. 
 

It makes no sense that a credit union that bans people for life because they caused them a $5 loss will allow you to keep a credit card with them when you caused them a $25k loss.  Even having access to any type of deposit accounts at Navy -- personal or biz -- is a minor miracle.  
 

Almost every bank will shut you down when they even see you've defaulted on another bank's credit card.  Letting you keep one of their own cards when in default on another of their cards?  Not going to happen.  I'm calling b.s. on your story.  

[StarkRaven$]

1 hour ago, PotO said:

I have never seen an instance such as you have described, especially with Navy.  In fact, your story smells extremely fishy.

 

It's virtually impossible for any credit card issuer in America to let you keep an active credit card with them when you have another with them in default, especially for $25k.  Hell, even were the default for $25 they would close down all of your accounts. 
 

It makes no sense that a credit union that bans people for life because they caused them a $5 loss will allow you to keep a credit card with them when you caused them a $25k loss.  Even having access to any type of deposit accounts at Navy -- personal or biz -- is a minor miracle.  
 

Almost every bank will shut you down when they even see you've defaulted on another bank's credit card.  Letting you keep one of their own cards when in default on another of their cards?  Not going to happen.  I'm calling b.s. on your story.  

Especially a credit union (cross-collateral utilization).

 

.https://www.billsbills.com/complete-guide-bankruptcy/credit-unions-nasty-cross-collateral-clause

 

 

[PotO]

2 hours ago, StarkRaven$ said:

Especially a credit union (cross-collateral utilization).

 

.https://www.billsbills.com/complete-guide-bankruptcy/credit-unions-nasty-cross-collateral-clause

 

 

 

Especially Navy.

 

Navy is THE meanest SOB this side of Mars.  If you default on one of their cards they will never -- yes, never -- allow your second card to remain usable.  And not just Navy.  Any bank in America.  

[ON-MY_way]

3 hours ago, PotO said:

 

Especially Navy.

 

Navy is THE meanest SOB this side of Mars.  If you default on one of their cards they will never -- yes, never -- allow your second card to remain usable.  And not just Navy.  Any bank in America.  

Not surprised you feel this way, but I guess the old adage, 'never say never' applies in my case.  All 3 of my personal and 2 business accts are intact along with the cc.   I could show a redacted screenshot of the NFCU nRewards acct, but I'd hope my word and long standing member here would suffice.  #NoBS

 

Edited November 13, 2020 by ON-MY_way

[PotO]

1 hour ago, ON-MY_way said:

Not surprised you feel this way, but I guess the old adage, 'never say never' applies in my case.  All 3 of my personal and 2 business accts are intact along with the cc.   I could show a redacted screenshot of the NFCU nRewards acct, but I'd hope my word and long standing member here would suffice.  #NoBS

 

 

Unless there is proof and a logical explanation ...

 

... pants on fire.

[ON-MY_way]

4 hours ago, StarkRaven$ said:

Especially a credit union (cross-collateral utilization).

 

.https://www.billsbills.com/complete-guide-bankruptcy/credit-unions-nasty-cross-collateral-clause

 

 

Quote from link:
What happens is that later on, when you pay off the loan obtained to buy the car or truck, or wish to sell the car or truck, because of the cross collateral language in your contract, the credit union does not have to give you back your title if you have any other outstanding loans and accounts with them, at least not until you pay those loans and accounts in full. 

This blog post is why I posted here.  What I've learned since posting and thanks to all the comment and help here is that ONCE you settle that dilenquent/charge-off account... whether settled for less or paid in full, then that account will be zero balance remaining and no other collateral is held against it.    It's interesting the author didn't include 'delinquent' in reference to accounts as I'm sure many have paid off their auto loan and received the title when they still had a balance (in good standing) on a credit card with the same institution.   

[StarkRaven$]

3 hours ago, PotO said:

 

Especially Navy.

 

Navy is THE meanest SOB this side of Mars.  If you default on one of their cards they will never -- yes, never -- allow your second card to remain usable.  And not just Navy.  Any bank in America.  

I have read sooo many posts about this very issue with NFCU.

[ON-MY_way]

1 hour ago, PotO said:

 

Unless there is proof and a logical explanation ...

 

... pants on fire.

...miracle on ice.  If that's the case, then I can live with the doubt you have. 

[ON-MY_way]

1 hour ago, StarkRaven$ said:

I have read sooo many posts about this very issue with NFCU.

Fair enough, don't jinx me.

[StarkRaven$]

1 hour ago, ON-MY_way said:

Fair enough, don't jinx me.

I wish you luck but just be forewarned. 

[ON-MY_way]

1 hour ago, StarkRaven$ said:

I wish you luck but just be forewarned. 

Thanks.  I very well may update here once the vehicle loan is paid in full.  I'm thinking it may be a good to keep small balances across my accounts and cc until my credit profile is strong enough on it's own.

 

[ON-MY_way]

Update #1

 

I settled the charge off back in November 2020 and my CRs now report zero (0) balance with 'Settled for less than owed' remark.  Saw a score boost and still have my personal and business deposit accounts along with NFCU Rewards cc.... and auto loan ($4k).   I did receive the settled account letter from NFCU.

Should I still refi the auto loan with another lender or just pay the auto loan off in the next couple months with NFCU and get the title given this settlement letter and reports reflecting paid charge-off.   It'd be great to not have to go through a loan app and incur a HP along with a dent to AAoA.  

Edited January 27, 2021 by ON-MY_way

[ON-MY_way]

Update #2

 

YAY! 
I went ahead and paid off the auto loan.  NFCU removed the lien and I received the free & clear auto title today.   Such a relief to conclude that chapter of debt and being able to maintain the use of my NFCU Visa, personal and business banking accounts.  

[cv91915]

Congrats on getting this resolved, and thank you for posting the outcome.