Western Federal inherited Press's $816,000 unsecured personal line of credit when it merged with Toyota Federal Credit Union in September 2007. After the merger, Western Federal stopped lending unsecured lines of credit and asked Press to pay off the loan, according to an article in The Detroit News.
Press asked the credit union for more time, according to the article. By August 2008, Press had repaid $410,000 of the loan, but in November he defaulted on the loan claming he could not make the first of two $203,000 payments because Chrysler eliminated his year-end bonus, the newspaper said.
Western Federal moved forward with the lawsuit against Press on June 30 for more than $467,000.
When asked by Credit Union Times to comment on the lawsuit Western Federal CEO John A. Bommarito said, "No comment. We're simply exercising our contractual right to collect on a loan as we do in the regular course of business when circumstances warrant."
On Sept. 1, the IRS filed a $947,410 lien against Press and his wife for unpaid income taxes the IRS claims they owe from 2007. The property the tax lien is on is a 6,800 square-foot, six-bedroom mansion that Press took out a $2.2 million mortgage on in May 2008, according to Oakland County property records.
Press currently has the property for sale for $3.15 million.