[net.consumers] Automatic Payments

barryg@sdcrdcf.UUCP (Lee Gold) (05/22/85)

We had the opposite problem.  We got a trust deed through our credit union
and decided to pay off the loan as fast as possible.  This went okay for
awhile.  Then the credit union merged with another larger one and changed
its accounting procedure.  And suddenly we noticed that they were still
automatically deducting the usual monthly payments from my husband's paycheck
--but putting them in his credit union account at 9% instead of applying
them to the trust deed.  At a higher interest.

I went down, breathing flame and got told that they could not automatically
make payments on our mortgage any more, since we had overpaid and didn't
owe any payments for another year.  We'd have to have each payment put
through by hand.  Oh yes, and they never credited us the difference between
the interest they paid us--and the interest we ended up paying on the
unreduced principle on the trust deed.

--Lee Gold