Financial Notices

can a collection agency take money out of my account at a federal credit union?

If I open up an account at a federal credit union, can a collection agency come and drain my account just like in a regular bank?

Public Comments

1. As long as they get a court order allowing them to take your assets, there is nothing that distinguishes a credit union from a bank.
2. Only if they've done the following: They've served you a summons to appear in court and they win a judgement against you....I get the impression that you have an outstanding judgement....if so, if they discover that you have this account, then can freeze/raid your account. This might be the time to deal in a "cash only" basis.....keeping your cash in a safe at home rather than in a bank account that might be subject to confiscation of funds.
3. Not without a judgment against you.
4. Credit unions follow the same federal regulations as regular banks do so when it comes to issues like these, they function the same. The courts provide the summons to the legal department and the garnishment and debit hold are soon to follow. Sorry. I work in a bank and I have had to be the one to bear the bad news to the customer when they call me asking why their direct deposit from their employer isn't showing in their bank account. It showed alright, but the garnishment took it. It's a tough situation.