Initial Business Response /* (1000, 8, 2016/08/24) */
Contact Name and Title: [redacted]
Contact Phone: [redacted]
Contact Email: [redacted]
According to guidelines outlined by the [redacted] all federal institutions are required to provide deposit...
customers with "terms and conditions" at the point of sale which outlines all policies and fees pertaining to their investments. League Savings provides this document not only at the point of sale but also on the reverse of our renewal letters. This document clearly outlines the auto renewal process as follows:
Automatic Renewal
If League Savings and Mortgage has not received instructions from the Investor on or before the maturity date, the deposit will be renewed for a similar term at the current rate of interest in effect at the date of maturity. Deposits may be amended, redeemed or transferred within 10 business days after the maturity date. Following the 10 day period, deposits are not redeemable or transferable until the next maturity date.
The renewal letter is sent to our customers 21 days prior to the renewal date. The customer also has the option to change these instructions up to 10 business days after the renewal date. This is also outlined on our "terms and conditions" on the back of the renewal notice. In addition, outlined in the last paragraph of the renewal letter there is a sentence regarding auto renewal which reads "If instructions are not received, your deposit will be renewed for a like term at the current posted rate of interest in effect on the date of maturity". It is our policy to also call all deposit customers with renewing deposits either ourselves or in the case of a referring agent they call to obtain renewal instructions. It is noted in our records that we followed up with the referring agent prior to maturity date looking for instructions and they informed us that they made two attempts to call.
Every time we receive a complaint, we review our documentation and processes to see if there was an opportunity for improvement. As a result, we have made a change to our renewal letter to ensure the auto renewal of deposits on the maturity letter is completely clear and understandable for all customers. The revised letter has a separate paragraph that reads as follows:
Auto Renewal
If instructions are not received, your deposit will be renewed for a like term at the current posted rate of interest in effect on the date of maturity.
This section will appear in bold lettering to help ensure it is not overlooked by our customers.
We have worked with this customer and fully resolved the issue as of August 15th. We appreciate the feedback received and the opportunity to make our processes clearer and transparent for all our customers.
Initial Consumer Rebuttal /* (3000, 10, 2016/08/26) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I accept the fact that they have changed the letter, and placed the information on the front of the letter about the automatic renewal - I think that is something most banks leave in the fine print, because people have lives and are busy, they often do not remember the terms and conditions. That being said, the bank has said this in their response:
"It is our policy to also call all deposit customers with renewing deposits either ourselves or in the case of a referring agent they call to obtain renewal instructions. It is noted in our records that we followed up with the referring agent prior to maturity date looking for instructions and they informed us that they made two attempts to call."
THAT is a wonderful policy, but I was NEVER called, NEVER contacted or reminded about the automatic renewal by League Savings and Mortgage OR [redacted]). It is wonderful to have the phone call clause, but in my case that never happened, nobody went out of their way to ensure I was properly contacted and "informed".
Another issue I have is that the League Savings and Mortgage is saying that if you are not contacted you will automatically renew the [redacted] "at the current posted rate of interest in effect on the date of maturity" Interestingly my [redacted] was renewed at a much lower rate than what the current going rate was - I spoke to a financial advisor in town and the going rate in early July was around [redacted], mine was renewed at below **!!!!! What a total and complete insult to a so called "valued" customer.
So yes they have changed their letter to reflect better instructions for people in the future, which I think is a good practice. [redacted]
Initial Business Response /* (1000, 8, 2016/08/24) */
Contact Name and Title: [redacted]
Contact Phone: [redacted]
Contact Email: [redacted]
According to guidelines outlined by the [redacted] all federal institutions are required to provide deposit...
customers with "terms and conditions" at the point of sale which outlines all policies and fees pertaining to their investments. League Savings provides this document not only at the point of sale but also on the reverse of our renewal letters. This document clearly outlines the auto renewal process as follows:
Automatic Renewal
If League Savings and Mortgage has not received instructions from the Investor on or before the maturity date, the deposit will be renewed for a similar term at the current rate of interest in effect at the date of maturity. Deposits may be amended, redeemed or transferred within 10 business days after the maturity date. Following the 10 day period, deposits are not redeemable or transferable until the next maturity date.
The renewal letter is sent to our customers 21 days prior to the renewal date. The customer also has the option to change these instructions up to 10 business days after the renewal date. This is also outlined on our "terms and conditions" on the back of the renewal notice. In addition, outlined in the last paragraph of the renewal letter there is a sentence regarding auto renewal which reads "If instructions are not received, your deposit will be renewed for a like term at the current posted rate of interest in effect on the date of maturity". It is our policy to also call all deposit customers with renewing deposits either ourselves or in the case of a referring agent they call to obtain renewal instructions. It is noted in our records that we followed up with the referring agent prior to maturity date looking for instructions and they informed us that they made two attempts to call.
Every time we receive a complaint, we review our documentation and processes to see if there was an opportunity for improvement. As a result, we have made a change to our renewal letter to ensure the auto renewal of deposits on the maturity letter is completely clear and understandable for all customers. The revised letter has a separate paragraph that reads as follows:
Auto Renewal
If instructions are not received, your deposit will be renewed for a like term at the current posted rate of interest in effect on the date of maturity.
This section will appear in bold lettering to help ensure it is not overlooked by our customers.
We have worked with this customer and fully resolved the issue as of August 15th. We appreciate the feedback received and the opportunity to make our processes clearer and transparent for all our customers.
Initial Consumer Rebuttal /* (3000, 10, 2016/08/26) */
(The consumer indicated he/she DID NOT accept the response from the business.)
I accept the fact that they have changed the letter, and placed the information on the front of the letter about the automatic renewal - I think that is something most banks leave in the fine print, because people have lives and are busy, they often do not remember the terms and conditions. That being said, the bank has said this in their response:
"It is our policy to also call all deposit customers with renewing deposits either ourselves or in the case of a referring agent they call to obtain renewal instructions. It is noted in our records that we followed up with the referring agent prior to maturity date looking for instructions and they informed us that they made two attempts to call."
THAT is a wonderful policy, but I was NEVER called, NEVER contacted or reminded about the automatic renewal by League Savings and Mortgage OR [redacted]). It is wonderful to have the phone call clause, but in my case that never happened, nobody went out of their way to ensure I was properly contacted and "informed".
Another issue I have is that the League Savings and Mortgage is saying that if you are not contacted you will automatically renew the [redacted] "at the current posted rate of interest in effect on the date of maturity" Interestingly my [redacted] was renewed at a much lower rate than what the current going rate was - I spoke to a financial advisor in town and the going rate in early July was around [redacted], mine was renewed at below **!!!!! What a total and complete insult to a so called "valued" customer.
So yes they have changed their letter to reflect better instructions for people in the future, which I think is a good practice. [redacted]