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Do I have a case to get the penalty charges that I will owe the IRS for the credit union not supplying funds as agreed? We took out our annuity in one lump sum to purchase a second home and make necessary repairs. Went to the credit union where we have been doing business for 20 years plus to get a loan on this house with the improvements that appraised well above the loan amount, so we could reimburse the annuity account without further penalty. Got a loan approved by the CEO of the credit union, they resigned 2 days before our closing of the loan and all of a sudden without a full explanation the credit union declined our loan. I could not get any response from the acting CEO and sent a letter to the Board of Directors...still no response. Finally took it to the NCUA as a complaint. Still have not received any final information on the complaint, but they are saying case in final stages of analysis. Been going on since November 2011. Do I have a case..all I want is what it is going to cost me when I file my taxes. Thank you Carla
Optional Information: Country/State/Province of question: USA, TN Already Tried: Tried to get a response from credit union then made a complaint to the National Credit Union Association.
Thank you for your question, Carla.From what I gather you held your funds out for longer than 60 days and you got him by the penalty for the funds, correct?
I would have been able to get the funds back in if the credit union would have closed the loan as agreed
Thank you for your follow-up.I am afraid that you will likely not be happy with my response, so please do not blame the proverbial messenger. The credit union is likely not liable here to you. Here is why:The owed you no duty to approve the loan. It is solely at their discretion as to whether or not to accept or deny the loan, and the fact you removed the funds from your other accounts so as to underwrite the loan is generally irrelevant because that is your liability, not theirs. As a consequence any penalty, fee, tax, or other detriment that you suffered is not something that they are legally required to cover. They owed you no explanation as to why they chose to deny, so therefore the fact they gave you no reason is not actionable. As a consequence I do not see a legitimate claim here, even if I agree with you that you got a raw deal in the process.Good luck.Dimitry Esquire41031.1667581366
Experience: NASD Licensed Rep, 1997-2001, Business Attorney