American Siding, Inc.

While we understand the complainant’s frustration with the loan file being denied after being in process for over days, mortgage files are not approved until an underwriter reviews the loan file. Initial facts provided to us on original applications are verified during the loan process
which can take 30-days including verification of employment. If the specifics of a loan do not meet our underwriting guidelines, we are forced to deny files or to make counter offers. While our originators look for ways to make a loan file work, it is ultimately up to our underwriters to make the final determination if the loan file meets our guidelines as well as what type of risk to our institution the loan represents. This loan file was denied when it was reviewed by our underwriting team and a counter offer was not made. In this situation, we opted to refund the $the applicant paid for the valuation of the property while not accepting any wrong doing on the file The fee was returned to the member via mail on 3/3/ The valuations are ordered based on the originators review of the file and the initial information provided to us by the applicants. Based on the initial application, the originator had no reason to believe the applicant did not have the required time on his present job Underwriting approvals and denials are based on many factors presented in a loan file including but not limited to credit, income, employment and property characteristics. The underwriter was able to make a decision on this loan file after it was fully processed and the verified information was able to be reviewed

Arizona
Central Credit Union acknowledges receipt of the complaint from [redacted]  The loan for the 2012 Ford
Escape was opened November 13, 2014 with an original amount of $20,000.  All applicants are required to sign loan
documents including a Supplemental Insurance Provision...

that clearly details
insurance requirements  of “comprehensive
and collision insurance against loss or damage on the personal property that is
securing your loan in an amount sufficient to cover the credit union’s interest
in the collateral”.  [redacted]igned this
document and provided a copy of a [redacted] Insurance ID card.Through
regular review of loan files, it was discovered that [redacted] did not carry
collision coverage with [redacted] Insurance. 
We issued a letter April 28, 2015 stating we were unable to accept the
policy for this reason.  The letter also
offered several ways for [redacted] or her agent to provide proper proof of
insurance to avoid our purchasing insurance on her behalf.  We did not receive a response to this letter
and another letter was sent May 26, 2015 with the same request for information
of proper coverage.[redacted]’s
policy with [redacted] renewed June 3, 2015 and we received a copy of the
declarations page detailing coverage. 
Again, there was no collision coverage listed on the policy.  The third letter dated June 23, 2015 indicated
Arizona Central Credit Union purchased coverage to protect our interest in the
collateral and would remain in effect until satisfactory evidence of insurance
was received.  This is common practice
for financial institutions to protect their collateral.  The insurance purchase price of $3,028 was
added on July 6, 2015 which increased the payment from $419.90 to $679.81.  The policy purchased by Arizona Central is a
one year policy and the monthly payment amount is increased for only 12
payments, not the life of the loan.  [redacted]
obtained a new policy with [redacted]n July 29, 2015 with the proper comprehensive
and collision coverage and the collateral protection insurance obtained by AZ Central
Credit Union was cancelled.  A refund in
the amount of $888 was applied to the loan and a new letter sent September 15,
2015 (this letter was sent back RETURN TO SENDER) stating our policy has been
cancelled however any lapse in coverage would be the responsibility of the
member.  Because we did not have
satisfactory evidence of collision coverage from November 13, 2014 until July
29, 2015, the premium amount was reduced to  $2,140 and is still due and payable by the
member in the form of increased monthly loan payments of $603.59.  If payments of $603.59 are continued, the
remaining policy amount of $2,140 will be paid in full as of June 2016 and the
payment will decrease to the original amount of $419.90 provided proper
coverage is maintained.Arizona
Central Credit Union clearly disclosed the required insurance coverage and made
several attempts to notify [redacted] of the missing coverage before purchasing our
own.  There are
several options available to [redacted] to reduce her payment and we would be happy to
discuss these with her.  She should call
and speak with Traci S[redacted] Director, Support Services at 6[redacted]

This fee is disclosed on the Fee Schedule provided to all members.  In addition, the month before charging this fee, we mail a letter to our members notifying them all they need to do is contact us to ensure this fee is not charged.  [redacted] spoke with our Solution Center on 9/1/2015...

and all the fees refereenced in her complaint were refunded.  We also explained how they are calculated and how to avoid them.

At no point did I ever receive any contact about the insufficiency of
the insurance, the only contact letters I received from Arizona Central
Credit Union were that asking for the title of my vehicle. Arizona
Central Credit Union has both my phone number as well as my email
address, at no point were either of those methods used to contact me. I
never received those letters, I moved in February, however my mail was
requested to be forwarded a phone call was utilized to change the
address with the Credit Union. However due to another move the address
was never changed, the address I originally had was left in the system. I
changed my new address online this time.  Despite the times
I have contacted Arizona Central Credit Union never once did they
disclose the information provided to Revdex.com to me. I have emailed multiple
times about the CPI, each time being told to send my insurance info for
that period of time in and nothing more. The amount of CPI makes even less sense, if the CPI was purchased in the beginning of July and proper insurance coverage was obtained in the end of July, that means over two thousand dollars is being charged for a period of time that has passed before the CPI was ever purchased. How does that protect the investment of the Credit Union if there is active proper insurance maintained?

While I understand Ms. [redacted] concerns, the amount of the premium covers the entire period the vehicle did not have collision coverage.  She misunderstands the information provided.  The only letter that was returned was noted in our original response, so it is safe to assume the other letter were, in fact, delivered.  Lastly, this is a hard charge, paid to an insurance company and not something we are able to waive as a gesture of good faith.  I have attached the acknowledgement/agreement disclosing all the terms Ms. [redacted] is now disputing.  Unfortunately, the credit union position has not changed.

I have reviewed the information provided by Ms. R[redacted].  We received returned mail from and sent her a letter on 4/20/2017 requesting she contact us so we do not charge her fees for an undeliverable address.  She called on 5/8/2017, updated her mailing address and her account was closed...

and a check sent for the remaining balance in her account.  I do not see any record of the previous communication she references. It appears we have already complied with her request.  I want to confirm Ms. Robinson was not charged any fees related to having an undeliverable address on her account. If further information is required, please contact me.  Thank you.