[WSBAPT] BECU and Creditor Claim

Tue Jun 27 10:25:31 PDT 2023

FWIW, I don’t think its recent law as 20 plus years ago when I did bankruptcies credit unions were allowed to cross collateralized loans under federal law. At that time, we  advised debtors to reduce balances in accounts at CUs if they had outstanding loans there before filing for BK. Unless law changed, in probate I would assume in that situation CU’s (as in bankruptcy) are treated as secured creditors up to balance in account at DOD and so could pursue security without having to file a claim. Thanks, Cy

Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon); Phone: 360-472-1223 

Mail: POB 367, Shaw Island, WA 98286; Physical Office:  640 Mullis St #214, Friday Harbor, WA

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Eric Nelsen
Sent: Tuesday, June 27, 2023 9:51 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] BECU and Creditor Claim

What Rebecca said—that’s been my experience as well. An unpleasant surprise in several probates.

Was this a (relatively) recent change in the law, or perhaps just a change in credit union practice? I don’t think I started seeing this happen until around, say, 2014.

Sincerely,

Eric

Eric C. Nelsen

Sayre Law Offices, PLLC

1417 31st Ave South

Seattle WA 98144-3909

206-625-0092

 <mailto:eric at sayrelawoffices.com> eric at sayrelawoffices.com

From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Rebecca King
Sent: Tuesday, June 27, 2023 9:36 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] BECU and Creditor Claim

BECU has language in their lending documents that say that BECU can freeze or collect from any accounts at BECU at death.  Credit Unions can do this. I’ve had several estates in which BECU has pulled funds from decedent’s checking/savings accounts, completely circumventing the creditor claim process.

Warmest regards,

Rebecca King

Attorney

Northwest Elder Law Group

2150 N. 107th Street, Suite 501

Seattle, WA 98133

Main: (206) 937-6102

Direct Line and Fax: (206) 866-6544

Providing Services in Elder Law

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From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Brent Williams-Ruth
Sent: Tuesday, June 27, 2023 8:50 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] BECU and Creditor Claim

There was one BECU credit card and one checking/savings that is required to have any account at BECU. I am prepared to just leave the under $200 in the checking/savings but I will not be providing any further information for an unsecured credit card where they got the NTC with a cover letter that provided the account number. 

Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

**EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA 98063 

Office/Scheduling Phone: (253) 285-7751

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e-mail <mailto:Brent at Williams-RuthLaw.com>  / website <http://www.williams-ruthlaw.com/>  /  <http://www.facebook.com/bwrlaw> facebook / 

On Mon, Jun 26, 2023 at 7:16 PM David Moe <davidmoe at maplevalleylaw.com <mailto:davidmoe at maplevalleylaw.com> > wrote:

By any chance is BECU a secured creditor as to the debt in question—and does the estate (incl. non-probate estate) include funds in BECU CD or share or checking accounts?  BECU (and perhaps other credit unions) may claim to have a right to freeze or to enforce a set-off as to decedent's assets in BECU accounts.  I don't believe commercial banks enjoy the same right.   The right of set-off might put BECU in a "secured-creditor" status.  Secured creditor status would allow BECU to ignore the mailed NTC and to verify their offset claim.  

Possibly that would explain the BECU  request for letters and death certificate.  This happed with an unfortunate result some year back with one of my probate matters where decedent left a $16K BECU share account but also had a secured debt held by BECU.  I don't recall whether that was a BECU notice/deed of trust or a BECU credit card debt.  The share account was decedent's only liquid asset other than equity in decedent's personal residence real property.  That cient needed some of the cash from the BECU account to make the decedent's residence marketable, in which event both the estate and BECU would have benefitted.  There would have been a modest surplus to the estate.  The PR client (a sole adult child beneficiary) did not have (or did not want to risk) additional personal funds to make the necessary repairs.  BECU would not relent.  My client, who had traveled from the east coast and paid attorney fees to open the probate, decided to abandon the estate rather than sink more personal funds into the fiasco.   In today's real estate market things might have been different.   My take-away has been to warn modest-means clients about this mixed-benefit situation involving credit unions.

Has anyone else experienced this? 

Dave Moe

David Moe Attorney, P.S.

Telephone:  425-432-1277

Fax:  425-432-1280

23745 225th Way SE, Suite 108

Maple Valley, WA 98038

Email:   <mailto:davidmoe at maplevalleylaw.com> davidmoe at maplevalleylaw.com

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From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> > on behalf of Brent Williams-Ruth <brent at williams-ruthlaw.com <mailto:brent at williams-ruthlaw.com> >
Sent: Monday, June 26, 2023 5:06 PM
To: WSBA Probate & Trust Listserv <WSBAPT at lists.wsbarppt.com <mailto:WSBAPT at lists.wsbarppt.com> >
Subject: [WSBAPT] BECU and Creditor Claim 

A funny thing happened on the way to the forum today......

I got a letter from BECU after sending them a known creditor notice for my mother's estate.  Rather than filing a creditor claim, they send me a document stating that I need to send them my letters testamentary and a photocopy of the death certificate. 

Has there been some change to the creditor statute? Have I fallen and hit my head?

I cannot recall the total number of creditor's claims filed by BECU in the past - so I am curious as to whether anyone else has received notices like this. It seems strange that they would elect to send this - noncompliant communication - over actually just sending the creditor's claim. 

Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003

**EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to the following address: PO BOX 3319; Federal Way, WA 98063 

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail <mailto:Brent at Williams-RuthLaw.com>  / website <http://www.williams-ruthlaw.com/>  /  <http://www.facebook.com/bwrlaw> facebook / 

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