[WSBAPT] BECU and Creditor Claim

Wed Jun 28 19:26:13 PDT 2023

I’ve been dealing with BECU’s cross collateralization agreement issue my
entire bankruptcy career when there is a securitized asset like a car or
rv.  Not sure if it the same issue here.  But it seems like it is just good
old ofset rights.  I don’t know why bank’s are not doing it.
https://app.leg.wa.gov/rcw/default.aspx?cite=48.31.290

*Mark C. McClure*
*Managing Attorney *Law Office of Mark McClure, PS

*"Why Retire With Debt?"*1103 West Meeker Street, #101
Kent, WA 98032

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*From:* wsbapt-bounces at lists.wsbarppt.com [mailto:
wsbapt-bounces at lists.wsbarppt.com] *On Behalf Of *David Moe
*Sent:* Monday, June 26, 2023 6:59 PM
*To:* WSBA Probate & Trust Listserv
*Subject:* Re: [WSBAPT] BECU and Creditor Claim

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:  davidmoe at maplevalleylaw.com

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------------------------------

*From:* wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
on behalf of Brent Williams-Ruth <brent at williams-ruthlaw.com>
*Sent:* Monday, June 26, 2023 5:06 PM
*To:* WSBA Probate & Trust Listserv <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*

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