Credit Union gone bad

The bank is not liable for the $800. Their obligation is the note/contract. They do not need to help you.

If the car was financed you are obligated, no REQUIRED, to have insurance on it...the insurance should have covered the car if it was found more than 30 days later...whatever the book value of it was. The rest you would be responsible for.

So...did they find the car within 30 days? If so, then the loan would still be active as a secured loan. Again, they don't have to help you with the $800...YOU are responsible for that. Whether you get the car back from the facility is of no interest to the bank - you are still obligated to pay the loan.

For the bank to convert it to an unsecured loan, seems to me that the car was stolen, gone more than 30 days, there was no insurance...therefore, they no longer have the car as an asset to secure the debt...now it becomes an unsecured note. (Not 100% sure here.)

If the car was not found until more than 30 days (and the insurance paid the claim) then technically the insurance company owns the car. If you want it back, then you'll have to "purchase" it from the insurance company.

If these scenarios are not correct, please provide more info so we can help.