There is always a chance that you could present your case and get a judge to see it your way.
Code:
We get a letter in the mail today from CUNA Mutual......the bank's insurance company telling us that they paid the bank the money that we took from them and now we owe them. Please submit payment for $4300 (or thereabouts).
Personally, this is what I would do in responce to that letter . . . I would write back to them telling them that since you never got anything from the bank saying that you still owed them this amount you did not set up any sort of payment plan to take care of it and if CUNA Mutual wanted to pay this amount and then have you pay them back they should have contact you first to reach an agreement about that. But since they did not you are under no legal obligation to pay them back money that you did not enter into a loan or contract with them about.
Also, if you want to get some media attention to your story, which could help make the bank rethink things, contact your local media and tell them your story. Also, I would suggest you join our letter writing campaign sending your story to the contacts for the Washington Post and ABC news (contact me directly if you cannot find the posts with the contact info)