Coconino Federal Credit Union

Dear Dispute Resolution Consultant:According our records the loan for the 2015 Toyota was funded for [redacted] and [redacted] with the first payment due 12/30/2014. We show that on December 26, 2014 Ms. [redacted] & Mr. [redacted] came in to our office to set up the payments to...

automatically be withdrawn from another financial institution. Since the payments were going to be automatically made, the credit union reduced the interest rate on the loan for the 2015 Toyota from 2.99% to 2.74%, per our rate rewards policy. However, the person responsible for getting the form to set up automatic payments to the accounting department so we could start the withdrawals, failed to alert the accounting department. We apologize for this error.The payment due January 30th wasn't made on time due to us neglecting to set up the withdrawal. We sent a delinquent notice dated February 13 and one dated Febr-uary 20 to the address on the account. The other financial institution's account was never debited so our withdrawal never showed up on the statement for that institution. The January payment was made February 27, 2015, the credit union waived the late fee due to the error on our part.On March 4th a check for a payoff was received from Arizona Central Credit Union, the payoff was short $10.53, we withdrew the $10.53 from the share/savings account, to payoff the loan. In order to have a loan at the credit union you must have an account, when we open an account for a loan from an auto dealer the dealer pays the minimum $25 deposit for their customer.On July 23'd the share/savings was closed, the Ms. [redacted] insisted on withdrawing the entire $25 even though the balance was only $14.47. The credit union gave her the $25 due to the previous error we had made on the account by not getting the form for the automat'rc withdrawal to proper department. At the time the teller did not have the authority to make the necessary adjustments to the account and it was left $10.53 overdrawn.August 7th the overdrawn account was adjusted to reflect a zero balance, unfortunately a notice was generated and sent dated August 6th to alert Ms. [redacted] the account was overdrawn. The notice has standard verbiage in it that says: The share account listed above is overdrawn. Please deposit funds into your account to avoid further collection efforts. If you have any questions, please contact the credit union.Please note collection efforts means anything from a phone call to another notice, it is not a threat to "send collections after you", Upon receipt of this complaint we checked with the credit bureau to make sure their credit rating was NOT impacted by any of this activity. We pulled a Bullseye which only gives us information the credit union reported and does NOT impact the credit score the same as a regular inquiry would. Ms. [redacted] and Mr. [redacted] credit rating state the account was paid in full without any late payments. Exactly how it should have been reported. Our records do not indicate that any late payments were made on this loan, since the issue was our error we took care in making sure everything was documented correctly. I apologize for the error the credit union made by not getting the withdrawal for your loan payment set up in a timely manner. And I am sorry there seems to have been some confusion about late payments on your account, which never happened as far as we are concerned.The credit union has used this issue as training tool on the importance of making sure we service our members to best of our abilities. One document not sent to proper department resulted in a loss to the credit union both financially and to our reputation.Please feel free to contact me if you have any questions or need any further information.

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me as long as I understand the response from Coconino Federal Credit Union is as follows: [redacted] and [redacted] have a zero balance on our account and it is closed. There are no late fees due, there is no overdrawn amount that is due and our loan has been paid in full. Coconino Federal C.U. will cease sending [redacted] and I letters stating our account is delinquent, overdrawn or has any penalty fees that are due. I agree with CFCU in that this incident has resulted in a tarnish to their reputation. I will never do business with this bank again. They have a long way to go to become a trustworthy institution again. I will not recommend CFCU to any of my family, friends or associates. A financial institution should be accurate 100% of the time. There is no room for repeated errors to occur. I feel that not only should this incident be used as a training tool but also that any future error(s) will result in disciplinary action.I will wait until for the business to perform this action and, if it does, will consider this complaint resolved. I sincerely thank the Revdex.com for all of their assistance regarding this matter.     

Regards,

[redacted] and [redacted]