Bank-Fund Staff Federal Credit Union held a mortgage on debtors’ real estate.  The loan was in default and the credit union sought to foreclose and obtain possession of the property. The credit union initiated foreclosure proceedings and sent a Notice of Foreclosure Sale to debtors. The foreclosure notice, however, erroneously stated that the members did […]

Here, debtor, a former police officer, applied for and was approved for a loan from Hartford Police Federal Credit Union for $150,000. The loan was for the purpose of paying off an existing second mortgage on debtor’s residence and for the purchase of a business. At the closing on the credit union’s new mortgage, debtor executed the closing […]

False Credit Union Loan Application results in nondischargeable debt for Credit Union. Here, debtor applied for several loans at the Credit Union, and on all but the last application, the debtor listed a mortgage debt on her residence. Each of the loan applications were denied due to an unacceptable debt to income ratio, except for the […]

This California Appellate Panel rendered an opinion favoring creditors who refinance a debt in reliance upon a fraudulent financing statement, even though no new money is advanced. In this case, debtors had an existing loan with the bank and were unable to make the agreed payments. Debtors requested an extension of time to repay the […]

In this case, the Court addressed whether the prohibition against transfers to creditors prior to the bankruptcy filing begins from the date of transfer, or runs backward from the date the bankruptcy is filed. Here, the creditor obtained a judgment lien against the debtor’s property 90 days before the date of the filing of the debtor’s […]

Defective Notice of Right to Cancel results in Truth in Lending Violation and extends borrowers right to rescind. Here, New Maine National Bank granted a loan to the debtors secured by debtors’ residence. At the closing of the loan, the loan officer supplied the debtors with a “Notice of Right to Cancel” (hereinafter “Notice”). Pursuant to the […]

In this case, a jury awarded the debtor $46,225 plus punitive damages of $100,000. Here, Pioneer Savings loaned $39,000 to Lannigan secured by the debtor’s real estate. The initial interest rate was “8 1/2%”. The loan documentation provided that Pioneer: … may hereafter decrease said interest rate and may also increase the rate upon giving […]

Bankrupt Debtor may only redeem collateral in one payment. Redemption installment payments prohibited if debtor elects to retain vehicle.     Here, debtor sought to redeem Ford Motor Credit collateral by paying installment payments for the value of the vehicle, instead of one lump-sum redemption payment. Section 722 of the Bankruptcy Code provides, in pertinent part: An individual debtor may, whether or not the […]

Here, Progressive Credit Union was held liable for more than $158,000.00 when the credit union granted a secured loan to a member and did not pay off a prior lienholder.  The appellate court found the credit union liable to the former lienholder. When Progressive Credit Union granted this loan, it searched the county and state lien records and […]

Here, Dutch Point Credit Union’s perfected security interest was extinquished upon the sale its collateral by a automobile repair facility.    The credit union granted a loan secured by debtor’s Datsun automobile. The credit union properly placed its lien on the vehicle. After the loan was granted, the vehicle was in an accident during the same year.   […]