I was an Assistant Branch Manager at a small town credit union while my husband was working in the town. We refinanced our vehicles through them at a low interest rate and maybe a year later, we found out that we were being relocated. Approx 3 months later we got a letter in the mail saying that since I was no longer an employee and since we had moved out of state, they were raising our interest rate by 8%!!! Is that legal? I've never heard of that before, and I just got a new statement from them...the rates are horrible and we are planning to refinance here locally, but still wonder if the rate change was justified? Can someone please shed some light?
2006-10-11 00:16:42 · 5 answers · asked by Mashanda 2 in Business & Finance ➔ Personal Finance
Even though we are out of state...we still DO have a savings account with the Credit Union and a Christmas account and there is nothing in the contract allowing for a change of interest rates....the reason for my question. There was also no mention of interest rates changing prior. I never ran into a situation where someone's interest rate changed the entire time I was there. We have never missed nor been late on a payment and I see no reasoning for this...Thank you for all!!!!
2006-10-11 00:55:16 · update #1
I am looking at the contract...I see nothing in here about it....
Are we talking about an employment contract, or the Security Agreement? I would have to get a copy of the employment contract faxed over...I don't ever remember anything in there about it either...
2006-10-11 01:11:27 · update #2
It is possible. There are 2 parts to your interest rate hike, first is you being an employee and second not being in-state.
The first part is very likely, you were probably given special employee discount on the interest rate. So when you left the CU after such a short time, you lost that discount.
Secondly, when you moved out of state, I'm guessing, you changed banks? Credit Unions charge higher interest rates to those who are not members.
As an Asst Branch Mgr, I am suprised that you would not know these things.
2006-10-11 00:26:38 · answer #1 · answered by AJ 7 · 0⤊ 0⤋
Read the contract. If there is a provision in the contract for raising the rate, then they're justified, if not then you have a case against them. Having worked in banking for several years, I'm very confident that the Credit Union has such a clause in the contract. Read the contract... Carefully!
2006-10-11 08:04:38 · answer #2 · answered by Adios 5 · 0⤊ 0⤋
You were an assistant branch manager and you didn't know the Credit Union Bylaws? Read your contract, like you should have when you took out the loan. If it's not stated on the loan contract or on your employment contract or office handbook, then no, they have no right.
2006-10-11 07:27:42 · answer #3 · answered by Barbara 5 · 0⤊ 0⤋
this is not possible because a contact has being signed by both parties, and therefore nothing can be added or removed or less with the agreement of both parties, in this case a new contract will be written. it is very illegal and un proffessional to say the least, for them to have increased the interest without a notice and agreement.
i think you should stick to the first contact or sue if neccessary.
good luck
2006-10-11 07:32:49 · answer #4 · answered by ike24 m 1 · 0⤊ 0⤋
Only if there is a clause in the contract giving them this right.
2006-10-11 07:20:12 · answer #5 · answered by Letsee 4 · 0⤊ 0⤋