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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11352
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I had a $25,000 CD at my credit union. 5 years ago I needed

Customer Question

I had a $25,000 CD at my credit union. 5 years ago I needed to take out a loan from it of $15,000. I was unable to repay the loan and forfeited the principal of the loan as well as $2500 in interest/fees. I chose to cash out the remainder of the CD as it was at maturity rather than roll it over. The bank gave me the balance. They have now frozen all of my checking and savings accounts and are saying I owe them $15.000 for the loan. This makes no sense to me-as it would mean I was paying back $32,500 for a $15,000 loan of my own CD-is this possible? I have tried to resolve it with the woman in charge of the lending department to no avail.
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Hi,

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Based on what you've said here, you're absolutely correct.

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The loan was repaid by the portion of the CD that you gave up.

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If you're sure you've not forgotten something here (another loan, etc) I think it's time to (1) Go over this person's head and speak to the president, and/or (2) Have a CT licensed attorney to write (might cost a couple of hundred bucks - be sure that you make it clear to the attorney that you only want to hire them to draft the letter) what's called a "Demand Letter."

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In speaking with the president, if that's something you'd like to try first ... making him/her that you are aware of the elements of "theft by conversion," (embezzlement under the common law) might light a fire.

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Let me know what questions you have from here.

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Lane

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I hold a law degree, (concentration in Tax Law, Estate law & Corporate law), an MBA, (specialization in finance & tax), as well as CFP and CRPS designations. - I’ve been providing financial, Social Security/Medicare, estate, corporate, both for-profit and non-profit, and tax advice, on three continents, since 1986.

Expert:  Lane replied 11 months ago.

Although I can't represent you, as I am not licensed as a CT attorney, I'd be glad to make a call or two to help get to the bottom of their thinking.

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My gut here, is that you simply have a front lines clerk who doesn't get it