ComplaintsforAccess Community Credit Union

• Initial Complaint

  11/13/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  My Name is **** ***** Arjon I have an account with Access Community Credit Union. I was divorced on 09/20/2023 I took a copy of the divorce decree to the bank and told them that the vehicle that was on loan with them had been awarded to my Ex-Wife and as stated on the Divorce Decree she was to keep up with her own payments on the vehicle. I opened a separate account due to the fact that I was told that money for her loan would not be taken out of my account since it was a separate account only with my name. On 11/08/2023 a withdrawal of 327.00 was taken out of my account. On 11/09/2023 I went to the credit union and explained to them that even though my name was on that vehicle it was my ex-wife sole responsibility to keep up with and maintain her expenses. They disputed that the divorce decree ordered by a Judge was Nol and void in regard to financial situations. I gave no one permission or no one from this credit union reached out to me telling me they would be withdrawing money from my personal account that is not linked to my ex-wife. On 11/09/2023 I closed out my account due to Access Federal Credit Union withdrawing money out of my account without notifying me or asking for my authorization. The employee told me that they could go into my account anytime and take my money for my ex-wife vehicle. I have a Divorce Decree that states different. I would like the Department who governs credit union (the nine-member Credit Union Commission) to be notified of the incident.

  Business response

  12/13/2023

  Divorce decrees do not supersede original contracts with lenders. If a court orders one party to pay a loan obligation, it doesn't releasee the other signer from liability on the account or loan if it was originally opened as a joint or co-signed account. The lender does not have to recognize the judge's payment orders as an amendment to the contract that both parties originally signed when the account/loan was opened. 

  Since both parties are liable, it is likely that the account is being reported to both parties credit report. If the account goes delinquent, regardless of the reason, the delinquencies report to both credit reports. 

  From the Consumer Financial Protection Bureau:
  **************************************************************************************************************

  A debt collector can generally contact you about a debt if your name is still on the debt or loan agreement, or if you’re otherwise still legally responsible for it. Check your state law and original loan or credit agreement.

  Divorce changes the relationship between spouses, but it doesn’t automatically change their relationship with creditors. A divorce decree or property settlement may allocate debts to a specific spouse, but it doesn’t change the fact that a creditor can still collect from anyone whose name appears as a borrower on the loan or debt.

  While state laws vary, you are generally responsible for a debt unless you were contractually released by the creditor, or your former spouse refinanced the loan and removed your name. This applies to any loans or debts you owed jointly with your former spouse, such as auto loans, mortgage loans, personal loans, medical bills, or utilities.

  For credit cards, you’re responsible for the debt if you had a joint credit card account, but if you were only an “authorized user” on your former spouse’s account, you’re generally not responsible for the amount owed. Learn how to be removed or have someone removed from the joint credit card account.

  
  Keep in mind, taking your name off a home or vehicle title doesn’t take your name off the mortgage or auto loan and sending creditors a copy of your divorce decree doesn’t end your responsibility on a joint account. If your divorce decree provided that your former spouse was responsible for the debt, or if you have other questions about your responsibility for a debt incurred before or during your marriage, contact your divorce attorney for advice or find an attorney in your state.

  If you're having trouble with debt collection, you can submit a complaint with the CFPB.

  The signed loan contract also provides this information under Additional Provisions of Loan Agreement: (copies of your documents are available upon request):

  Collateral (other than household goods or any dwelling) given as security under this Agreement or for any other loan You may have with Us will secure all amounts
  You owe Us now and in the future if that status is reflected in the "Truth-in-Lending Disclosure" in any particular Agreement evidencing such debt.
  
  LIEN ON SHARES. If shares or deposits are pledged as Collateral for this loan, You understand that the balance in Your account(s) on deposit with the Credit Union
  must be kept at least equal to the balance of Your loan until Your loan is repaid in full. We may, however, permit You to maintain or reduce Your account balances
  below Your loan balance. If You are in default, the Credit Union may apply all shares (except Keogh accounts and IRA accounts) then on deposit to Your loan up to
  an amount sufficient to repay Your loan.
  
  DEFAULT. Your loan shall be in default if any of the following occurs: (a) You do not make any payment or perform any obligation under this Agreement or any other
  Agreement that You may have with the Credit Union; or (b) You have made a false or misleading statement in Your credit application and/or in Your representations
  to the Credit Union while You owe money on this loan; or (c) You should die, or be involved in any insolvency, receivership or custodial proceeding brought by or
  against You; or (d) a judgment or tax lien should be filed against You, or any attachment or garnishment should be issued against any of Your property or rights,
  specifically including anyone starting an action or proceeding to seize any of Your funds on deposit with the Credit Union; and/or (e) the Credit Union should, in good
  faith, believe Your ability to repay Your indebtedness hereunder is or soon will be impaired, time being of the very essence. 

  Business response

  12/13/2023

  The joint owner (ex-spouse) came in after the delinquent payment was pulled from Mr. ******* account and made a payment on the delinquent loan. This amount was then refunded back to Mr. ******* account. The loan payment and account credit adjustment in favor of Mr. ***** have both been satisfied as of the date of this correspondence. 

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