Credit union froze my account for an old debt

by Bill
(Greensburg Pa. USA)

I'm in Pennsylvania, I had a vehicle that was financed through a credit union repossessed back in 2008, due to a job loss I could no longer afford the payments. They came and towed the truck away and I never heard from them again.
I later started working at a new job and have been there for several years. One of the benefits at this job is a credit union that I have deposited money into via payroll deductions and have made withdraws when I needed cash, never had any problems for all these years. Then the company I work for changed the credit union they deal with to a new one and transferred our accounts to the new credit union that just so happens to be the same credit union that repossessed my truck 8 years ago. I continued to make deposits and periodic withdraws to the account with no problems until my most recent attempt to withdraw some cash, they told me my account funds have been seized and applied to a deficiency balance they are claiming I still owe from 2008 on my truck loan. It is now 2016, 8 years have passed, they never even notified me that I owed a balance after the repo,nor have they sued or obtained a judgement, this is well beyond the 4 year statute of limitations in Pa. Is this legal?
Thank You.

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Jan 30, 2016
Frozen account

That's a really good question Bill. Credit unions often retain the right to "offset" your deposit funds to pay debts you owe them. However, you are correct that the applicable statute of limitations in Pennsylvania is often (though not always) four years so it would seem this debt is outside the statute of limitations. We would encourage you to talk with a consumer law attorney right away to find out whether their actions were legal, and if not, what you can do about it. Visit the website of the National Association of Consumer Advocates if you need help finding one.

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