Desert Schools Federal Credit Union

Review: I took out a car loan with Desert Schools back in July 2009. In order to make my payment process easier, I set up an automatic payment where Desert Schools took money from an external account of mine, deposited it into my savings account with Deserts Schools and then made the payment on approx the 20th of each month. On approx October 30, 2013, the car loan with Desert Scools was paid in full. On November 20th they withdrew the car payment money from my non Desert Schools account and deposited it into my Desert Schools savings account (I had requested with my payoff that the auto payment stop). On Noevember 25th, I then went into the Desert Schools Branch on [redacted] to withdraw the money and completed the Stop Auto payment form. I was assured the auto withdrawals would stop. On December 20th, the money was again withdrawn from my non Desert Schools account and deposited into my Desert Schools Savings account. I went back into the branch and asked why this happened - which no one could answer. I was then told that they were not withdrawing the money for the car payment??? That they were only transferring it from an external account to my Desert Schools account - Which they were NO LONGER authorzied to do. I told the teller that I wished to close my account with Desert Schools and she told me if I did that then I would loose the money that was in my savings account (aprox $406). I asked why would I loose MY money and she explained that if I closed the account the money that was transferred in would go to e Desert Schools?? Which made no sense. My wife was a teller many years ago and told the gitrl that we would not loos e the money that she was to withdraw the funds first and then close the account. Which I did. Earlier inthe day, my wife contacted the bank that the car payment money was being treansferred from and they said the only way to stop those withdrawals from happening was to issue a stop payment on the Desert Schools auto withdrawal - which she did at a cost of $35. I do not feel that we should have to pay that $35 since I did and completed all forms that were necessary to stop the auto transfer. In addition, I would like to add that the customer service staff at Desert Schools are the most unprofessional staff I have ever dealt with and that I why I chose to close my account so that I would not to deal with their attitudes and sarcasm any longer.Desired Settlement: I would like to be reimbursed for the $35 stop payment fee that I was charged from my other bank since Desert Shcools could not comply with the stop payment process that they had submitted back on November 25th.

Business

Response:

I am writing in response to the complaint you recently filed with the Revdex.com regarding the handling of your request to stop the transfer of funds from another financial institution to Desert Schools Federal Credit Union. Thank you for bringing your concerns to our attention.

Due to union negotiations and a loss of 2k a month in income I filed for Chapter 7 bankruptcy. I reaffirmed all of my debts with Desert Schools. Two car loans, and a line of credit. I wanted to keep my vehicles, even though I had no equity, because I didn't want to severe my relationship with the credit union in hopes to rebuild with them. Today, due to a lack of communication with my significant other, we were short $40.00 for our life insurance and they returned our life insurance policy due to NSF. Mind you, they show pending our $1,700.00 in deposits, and they returned a $70.00 insurance payment. Yet they didn't forget to take their $35.00 return fee. $35.00 to return a life insurance policy. And they have our payroll checks sitting there pending to be posted to our account. One scheduled to post tomorrow 10/8/15, and the other 10/9. I'm so disgusted with this bank, I used to love them so much. If you ever find yourself in a downfall, and you have to file any kind of bankruptcy, don't bank here. I wish I had done differently.

Review: On June 27th, 2014, I was reviewing my personal bank account records and transaction history (which I typically do about twice each week) when I noticed that two withdrawals totaling over $2,000.00 were made from my savings account without my knowledge or consent. The two withdrawals were executed on two separate days earlier that week (on or about June 25th and 26th). In general, I do not withdraw funds from my savings account so the withdrawals were an immediate red flag. I called the fraud number provided on my debit card and was instructed to contact the Desert Schools Federal Credit Union (“DSFCU”) directly. A DSFCU representative confirmed that approximately $2,040.00 had been withdrawn from my savings account on two different days, and that the transactions were initiated by DSFCU. I asked the representative why the money was removed and why I had not received any advance notice of such a sizeable withdrawal, or notice even after the withdrawal had occurred. Anytime there is an unapproved or unexpected withdrawal without notice, it increases the likelihood of over-drafting the account and exposure to additional bank fees. I explained to the representative that as a general practice consumers should be given notice when large sums of money are withdrawn outside the course of normal account use.

When I inquired about the nature of the transaction and the bank’s alleged authority to conduct unilateral transactions of this nature without the account holder’s knowledge or consent, I was only given vague answers due to the privacy of another account holder. While I understand the importance of privacy laws and DSFCU’s obligation to protect its customer’s nonpublic personal information I feel I should be entitled to enough information to understand how an unexpected withdrawal is permitted to affect my personal bank account even if the transactions affecting my account were conducted by separate accounts. Again the money was removed without my knowledge to reiumburse DSFCU for a bad transaction I had no involvement or knowledge of.

After numerous failed attempts to obtain an explanation over the phone, I visited DSFCU in person for further clarification and to close my account. DSFCU’s lack of transparency in the process and the fact that I still had no explanation for the unauthorized withdrawal led me to believe that I could not safely maintain my accounts at DSFCU because I had no way to know how to prevent similar unauthorized withdrawals in the future. During my visit, I asked to speak with a representative so I could file a complaint and for information regarding the process to recover the lost funds. I was told there was nothing DSFCU could do and there are no safety features protecting bankers in my situation from withdrawals of this nature. I spoke with a "Member Solutions Representative" who was only willing to advise me to close my account and open a new one. The representative said there was no way to recover the funds, nor was there any paperwork I could file to prompt an internal investigation, get a more detailed explanation of what happened, or to recover the money.

According to the Member Solutions Representative another account holder cashed a check that ended up bouncing. DSFCU asked the account holder to endorse the check and then issued the funds to this other account holder. Afterward, the account holder closed his account. Thereafter, the check bounced and DSFCU was out $2,000.00. Because the payee no longer had an account with DSFCU, the bank accessed my account to recover the lost funds. It is my understanding, that because the bank cashed what ended up being a returned check, I am somehow responsible for the missing funds because I have an account that was linked to the payee’s now closed account. The Members Solutions Representative explained that where customers have linked bank accounts, DSFCU is permitted to take money from other linked accounts to reimburse the bank for overdraft fees or similar shortfalls even though the accounts do not have joint account holders and are in essentially separate accounts. This seems to be a highly deceptive and abusive practice that should not be permitted.

While the circumstances surrounding the bounced check are suspicious, I was in no way connected to the returned check or the insufficient funds that arose from the transaction. Nevertheless, I have been made liable for replacing those funds and had to be very persistent just to get an explanation from DSFCU.

I understand that no matter how stringent a financial institution’s policies are, returned checks are part of the industry and unavoidable. There should, however, be a system in place that protects innocent third parties from the aftermath of these types of bad transactions. As I understand it, if not for the linked account, DSFCU would not have been able to withdraw the missing funds from my account and DSFCU would be out $2,000.00. What would DSFCU do in that situation to recover the missing funds? I am left to guess that they would pursue the payee or the individual that issued the bad check – not an innocent third party. While I am not very familiar with banking practices, it seems irresponsible to me that a bank would issue funds on a check this size before the check clears.

Despite my lack of involvement in the bad transaction, DSFCU took money directly from my account to reimburse itself for poor checks and balances on their end. I have no way of recovering these funds because DSFCU states this is their protocol to take from another account to cover their own losses. I have maintained an account with DSFCU for years and have never had an issue. I have never had insufficient funds, never been late on a payment, or had a check bounce. I have suffered the loss of over $2,000.00 dollars due to maintaining a linked account. There are no safeguards to protect against this happening. I have had this account since I was a child as it was opened by my mother for me years ago.Desired Settlement: Considering my lack of involvement in the initial transaction, I believe a fair resolution would be for DSFCU to reimburse the funds that were withdrawn from my account. I understand that DSFCU has also been harmed by the initial transaction so I would be willing to cooperate with any investigation to assist DSFCU reach a resolution in this matter.

Business

Response:

Desert Schools Federal Credit Union is in receipt of the correspondence filed by [redacted] with the Revdex.com in her complaint letter dated 8/25/2014.

We have reviewed the events described in Ms. [redacted] letter. Although our staff followed the standard right of offset procedures, outlined in our Statements of Terms, Conditions and Disclosures, and provided to members at the time accounts are opened, we are electing to reverse the transfer of funds associated with Ms. [redacted] account. We have contacted our member and will work directly with her to facilitate account resolution.

We value the feedback from Ms. [redacted] letter and reexamining this process. We also appreciate the opportunity to respond to the Revdex.com as we are committed to working with our members to resolve inquiries or disputes promptly and equitably. Should you have any further questions, please feel free to contact me.

Sincerely, [redacted]

Review: Desert Schools contacted my husband and I because we were behind on his car payment he told them that I could talk to them because I'm the one that does the bills. I told them that I was getting a scholorship at the end of January and I would be paying his 2005 Subaru off with the money. I also asked if there was a modification we could do till I got the money and they were suppose to call back and never did.The end of January came and they sent a car out to take pictures. I called Desert schools back and told them that I was still waiting on my school money that I could send them a copy of the form that says how much I was getting that I had just got off the phoen with them and they messed up my refund The lady [redacted] which was very rude said well you owe a repo fee and the payoff I told her that the vehicle was never repo'd that there is no way they can charge me a repo fee. On Wedensday of that week I went and paid off the vehicle 1983.00 IO believe is what I paid off the lady at the bank had to call the corp office and talk to [redacted] she again insisted on that I would need to pay a repo fee on top off the pay off I told her that the car was never repo'd and that I am paying off the vehicle she I even paid a extra 25.00 incaser they at least needed to pay a close fee to the repo agent I use to work in the repo department for drivetime for 14 years they are not abiding by the law they won't even send out my title even though the car is paid off.Desired Settlement: I want them to take the repo fee off and I want them to send [redacted] and I his title to the vehicle.

Business

Response:

I am writing in response to the complaint recently filed by [redacted] with the Revdex.com regarding your automobile loan. Thank you for bringing your concerns to our attention.The complaint indicates that [redacted] believed Desert Schools had received authorization from you to speak with her regarding your automobile loan. Unfortunately, we have no written authorization on file. On two occasions, 10/27/14 and 2/9/15 we received verbal authorization from you to speak with [redacted] during those calls only. During the phone call on 10/27/14, when your loan was 27 days past due, [redacted] talked with our team lead, [redacted], regarding the possibility of a payment deferral or loan modification that may have provided some temporary relief that would allow additional time for payments to be made. [redacted] contacted our Loss Mitigation department and confirmed that they would review your situation. However it would be necessary to for you to complete and submit an application and updated financial information. Representatives from our office left voice messages requesting a return call so we could discuss the options with you. Additionally, we were contacted by [redacted] on 11/19/14, 11/21/14, and 12/5/14, but were prohibited from discussing the options in detail because of privacy restrictions. We encouraged her to have you contact us directly so we could assist you.On 12/29/14, when your loan was 60 days past due, we sent a “Final Demand” letter notifying you that your account had reached a critical stage of delinquency and required your immediate attention. It noted the principal balance of your loan at the time of $1,929.42.On 1/6/15, when your loan was 68 days past due, our Credit Assistance department received an email from our Member Assistance team advising us that they had received a call from [redacted]. During the call she informed them that your phone services had been disconnected. Additionally, she indicated it was still your intent to pay your payment some time near the end of January. No specific amount or date was provided.On 1/27/15, when your loan had reached 89 days past due, it was assigned for repossession. Desert Schools had not received any additional communication from you or [redacted] subsequent to the conversation on 1/6/15. The delinquency had aged to a critical stage and it was necessary to assign the account for repossession in an effort to protect our collateral. On 2/9/15, when your account was 102 days past due, you contacted our office and authorized our representative to speak with [redacted]. We advised [redacted] that the payoff due was $2,112.10, which included the principal balance, accrued interest, accrued late charges, and the repossession close fee. She contested the payoff and stated that a letter you had received indicated that only $1,900.00 was due. She then stated that is what she would pay and no more. Our representative attempted to explain that in order to pay off the account the principal balance, all interest and fees (including repossession close fee of $102.00) would need to be paid before the lien on the collateral would be released. In an effort to clarify the “repo fee” we explained that though the collateral had not actually been repossessed, the account had been assigned for repossession and Desert Schools would incur a $102.00 fee to close the assignment with the repossession company. The fee would be added to your loan as part of the Collection Costs outline in your contract. Despite our efforts to explain the amounts due [redacted] elected to terminate the call.On 2/11/15 our office received a call from our [redacted] branch. They advised that [redacted] was in the branch and wished to pay $1,950.00 toward your loan. Our representative advised the teller that the payoff was $2,125.53, which consisted of $1,919.42 principal, $67.40 late fees, $26.41 interest and $102.00 repo close fee. We further advised the teller that the funds would be applied to your loan, but until it was paid off the title would not be released. The $1,950.00 was deposited to your savings account and then the following amounts were credited to your loan: $1,843.19 principal, $26.41 interest and $67.40 in late fees.Your account remains past due for the remainder of the principal balance of $76.23, a late fee of $13.48, interest due of $.74, and the repossession close fee of $102.00 for a total payoff of $192.45.As a courtesy we will waive all of the remaining funds owed. Your loan will reflect being paid off and we will release your title and provide you the appropriate payoff documentation. I appreciate the opportunity to respond to the concerns outlined by [redacted]. I am hopeful that the detailed information provided will assist you in understanding the circumstances of your loan. I hope my response adequately explains our processes and addresses your concerns. If you have any further questions or concerns, please feel free to call me directly at ###-###-####.

Negative Review, I submitted a claim report due to a transaction that I did not recogniced. A week went by never recived a follow up call or initial call to advised it was being handdle. After a week I called to verify agent who assisted Andrea advised it was dropped due to it was a purchased I made but didnt charge a month later. I was happy there was no fraud but Desert school did not advised me the card was going to be closed. All that week that they never contact me my card was working fine, the day I call to check status and [redacted] advised it was ok I was stranded with no gas card was declined due to clsed out which was not nofied to me. Card worked fine all week that supposed it was figured out up untill I call to see what was going on. Totaly bad experience and horrible service in not notifying me that my card would be closed out and not call to advised they were working on it. I was stranded with no gas and card being declined at gas station.

Review: I've been charged 3 time from 1/9/2015 to now for overdraft fees before a check was deposited and after funds were sufficient and/or transferred to my account.Desired Settlement: 105.00

Business

Response:

I am writing in response to the complaint you recently filed with the Revdex.com regarding the Paid nonsufficient funds (NSF) fees applied to your account. Thank you for bringing your concerns to our attention.Paid NSF Fees represent the service charge we make in situations where there are insufficient funds in your account at the time a check or an electronic debit is presented for payment, but we cover the shortfall on your behalf. Doing this ensures the people and organizations you intended to pay receive their funds, sparing you additional charges and potential embarrassment. In each of the three occurrences mentioned in your complaint, there were not sufficient funds in your account to cover the transactions at the time each was presented for payment. Desert Schools paid those items on your behalf and applied the fee in each case. The specifics are:On Friday, 1/9/2015 an electronic debit from APS in the amount of $73.22 was presented for payment. At that time the account balance was $66.01. We covered the payment to APS and applied a Paid NSF Fee of $35.00 to your account. You did make a deposit of $100 at a Desert Schools ATM on Sunday, 1/11/2015 (Posted on 1/12/2015); however, those additional funds were not available to cover the transaction on 1/9/2015 so the fee was applied correctly.On Tuesday, 2/3/2015, check number 7202 in the amount of $792.72 was presented for payment. At that time the account balance was $6.84. We paid the check and applied a Paid NSF Fee of $35.00 to your account. A direct deposit from IRS Treas 310 in the amount of $2,531.00 was received and posted to your account on Wednesday, 2/4/2015; however, those additional funds were not available to cover the transaction on 2/3/2015 so the fee was applied correctly.On Tuesday, 3/3/2015, check number 7201 in the amount of $792.72 was presented for payment. At that time the account balance was $367.75. We paid the check and applied a Paid NSF Fee of $35.00 to your account. You did make an online banking transfer of $600 on 3/4/2015; however, those additional funds were not available to cover the transaction on 3/3/2015 so the fee was applied correctly.In each instance, items were presented for payment against an insufficient balance and, although it seems you were trying to ensure you had sufficient funds available, these items appear to have been presented earlier than you expected. The three Paid NSF Fees you incurred were charged correctly and in accordance with the terms and conditions of this account. However, as a courtesy, we are happy to refund one of the $35.00 Paid NSF fees. This credit was posted to youraccount on Friday, 3/6/2015.I hope my response adequately explains our processes and addresses your concerns. If you have any further questions or concerns, please feel free to call me directly at ###-###-####.

Review: I and my wife are in process of buying a home for our family, we discussed that I should either sold or refinance one of my several vehicle, after watching one of desert school commercial on TV, offering a 1.99 APR, or on their website "Tune-up your auto loan payment by refinancing today. With rates as low as 2.84% APR² and 90 days³ to first payment, you have an opportunity for lower payments." I decided to do an application, after pulling my credit I asked the agent about the rate, she reply that those rate are only for new vehicle, that my rate will be 3.99 APR or more depending on my credit, I was very upset because I could had apply with my bank [redacted]s, so I decided to proceeded with loan since they had already pull up my credit, I own more than 10 vehicle while doing the application I were ask how I used my vehicle, my response was for personal use also to go work since I own my business.

A couples hours later received a phone call from the agent telling me that I have good credit, enough income but the bank decided not to proceed with the loan because my vehicle is registered under my business , I was not sure on how to respond so I ask to speak to the supervisor and asked if I could used another vehicle?

When I went back home look into my title I found out that my vehicle was registered on my name only, so I called the loan department and spoke with [redacted] who adviser me to email it, since I was close to the branch decided to have them scan it and upload it to my loan application 183385, also spoke to [redacted] who once again reassured me that now they have everything, I should heard from they office before the end of the days, No one called me, so I decide to call spoke with [redacted] who inform me that the application where denied because of my auto loan history , so I confronted her telling her that I have a 750 plus credit score and more than 3 auto loan paid off, no collection! That it must be a mistake! Early the denial reason was because of my registration, now it something else, I request to speak with a supervisor, I spoke with [redacted] unfortunately she hang up on meDesired Settlement: Approve my application! I have the income and the credit, or I will take action for false advertisement , wrong doing, damage to my credit, and leave to the judge to decided!

Review: To whom it may concern;

I have also filed a complaint with the [redacted].

I am referencing REG CC from NCUA & the Federal Reserve.

http://www.ncua.gov/Legal/GuidesEtc/Pages/Consumer-Compliance-Manual.aspx

&

http://federalreserve.gov

On 9/9/2015 I opened a Savings Account with Desert Schools, my wife and new born son were present. The account was opened with $1,000 Cashier's Check drawn off a local [redacted]. The funds were placed on an extended hold violating the rules and regulations stated in REG CC. The rules list the next day items and collection of funds and why if any reason they should be placed on a normal hold and remaining funds released. (Please reference the above links).

*The funds will not be made available until 9/22/2015

*Cashiers Check drawn off [redacted] local financial Institution

*No reason was given for extended hold

*Deposit slip stated funds were made available

Called today at 9/10 to customer support at 9:29 a.m., asked if they could explain reg CC. The associate could not. She looked at the Cashiers Check and said that it was ridiculous and would transfer me to another associate who could assist. The associate recognized reg CC and did not explain the hold nor did he understand why it was held. "[redacted]" than proceeded to see if he could release the funds based on REG CC, he came back and stated our credit union for a new account based on reg CC 30 day rules can place an extended hold and recommended I file a complaint because he understood the issue.

*Next day availability rules apply to cash, electronic payments, and any other next-day item.

*It does state that an extended hold can be placed on a CASE by CASE situation (example personal check, not local etc.)

I am local, I work for a major university in the area and I was in the branch with my wife and new born son, with a cashiers check drawn off a local major financial institution ([redacted])

Thank you,Desired Settlement: I would like for my funds to be released according to the rules and regulations established by the government following REG CC, the credit union could of called the local branch and verified funds availability. It was the worst service my wife and I have every experienced. I currently bank with [redacted] and plan on putting 500 away every 2 weeks into a [redacted] account. We received a deposit slip stating funds were available and today was told they would not be released until the 9/22/2015. The manager nor did the banker give any reason to why the funds of a Cashier Check drawn off a local bank would be held. The computer/scanner would not even hold the funds she did the deposit several times and I explained the REG CC and the check. So I would like for the associates to be trained on REG CC and my funds released as I am certain they will be collected within the next 2 days if not sooner.

Business

Response:

[redacted]

If any questions or additional information is needed, please contact us.Thank you,[redacted]Executive AssistantDesert Schools Federal Credit Union[redacted]Desert Schools Federal Credit Union received the complaint (referenced above) you filed with the Revdex.com. Your complaint concerned the hold that was placed on a cashier’s check you deposited to establish your new Membership Savings account at Desert Schools.As confirmed in my call with [redacted] (joint owner) on September 11th, Desert Schools released the hold placed on the funds in your account. We appreciate you bringing this situation to our attention and apologize for any inconvenience this may have caused. While non-transaction accounts (e.g., savings accounts) are not governed by Regulation CC, Desert Schools generally follows those rules for new members (i.e., accounts opened within thirty (30) days). Having that said, your deposit should have been available the first business day after your deposit. Desert Schools will take your feedback and use it as an opportunity to refresh our employees’ understanding of the applicable regulations and our Statements of Terms, Conditions, and Disclosures.Please be advised that our records do indicate you were provided with a receipt at the time your transaction was completed showing that the amount ($1,000) of your deposit would be held through September 22, 2015.We appreciate you taking the time to share your experience and apologize for any inconvenience or frustration this situation has caused. If you have additional questions or concerns, please feel free to reach out to me directly.

Review: Desert Schools will take the largest amount debited from your account first so all other debits will bounce instead of taking debits in the order they come in so they can collect large amounts of overdraft charges. They have done it to me twice already.Desired Settlement: they owe me money from the overdrafts they charged me.

Business

Response:

I am writing in response to the complaint you recently filed with the Revdex.com regarding how transactions are processed at Desert Schools and how any subsequent non-sufficient funds (NSF) fees are applied to an account. Thank you for bringing your concerns to our attention.In your complaint, you indicated your belief that Desert Schools posts transactions largest to smallest to maximize the ability to assess NSF fees. Although some financial institutions may do this, we do not. Desert Schools follows a prudent posting method of posting credit transactions first and then debit transactions in the following order: 1) Teller transactions and other force post items (low to high dollar amount), 2) Transfers (low to high dollar amount), 3) Recurring Non-PIN Point of Sale (order in which they are received), 4) ATM transactions (order in which they are received), 5) Non-PIN Point of Sale (order in which they are received), 6) PIN Point of Sale (order in which they are received), 7) ACH (low to high dollar amount), 8) Checks (check number order). Changes of any sort to our posting order undergo several layers of approval.Paid NSF Fees represent the service charge we make in situations where there are insufficient funds in your account at the time a check or an electronic debit is presented for payment, but we cover the shortfall on your behalf. Doing this ensures the people and organizations you intended to pay receive their funds, sparing you additional charges and potential embarrassment.Unfortunately, your complaint letter did not include your account number. The address and phone number on your letter did not match any records we have with members having the same name. Therefore, I am unable to provide you detail regarding your specific account and the transactions that posted to it.I hope my response adequately explains our processes and addresses your concerns. If you have any further questions or concerns, please feel free to call me directly at ###-###-####.

Review: Your organization is very quick in charging us overdraft fees. It is an automatic process that your system is programmed to do.

The Banks system failed to show my wife's salary as being cleared as of Wed 6 Nov 2014 at midnight, as it should (and has been) for many years. Subsequently we went into the red.

We called the bank at about 4:30pm on 11/06/14 and was told that the funds (they could see my wife's salary, from [redacted], but they had not been cleared due to their bank system 'going down') would be cleared by 7PM - this did not occur.

We were told that we would incur no overdraft fees. This did not happen - they charged us $70.

As a consequence we have been unable to pay bills, went shopping with a full cart and could not check out.

I tried calling, e-mailing all to no end (it is busy, I am put on hold for too long, the e-mail on their web site says 'an error occurred' when I try to contact them)

This bank (like all others) is very quick in making overdraft charges through their automatic systems, but when they make a huge error, we have no recompense.

Therefore I have sent them an invoice invoice for this outrageous inconvenience and if it is not cleared TODAY 11/07/14 by 4:00PM I will use everything in my power to make known to all that your service has been awfulDesired Settlement: A refund of $1,070:00

this includes the $70 they have charged us for overdraft (which is down to them and their systems). $1,000 for the embarrassment and inconvenience and OUR charges top them for failing to clear the funds.

Business

Response:

I am writing in response to the complaint you filed with the Revdex.com regarding the issues you experienced recently with the direct deposit of your wife's direct deposit. Thank you for bringing your concerns to our attention.

I would like to begin with an apology for the issues you faced while trying to determine the status of your wife's direct deposit from the [redacted]. Desert Schools did experience an unexpected hardware failure that subsequently caused a delay in the processing of the direct deposit files we received. We recognize this unanticipated system issue may have caused issues for some of our members. We sincerely apologize for any inconvenience this issue caused you and your family.

In your letter, you correctly identified that Non-Sufficient Funds (NSF) fees are applied automatically by our system if items clear an account when funds are not available to cover them. Clearly, if your wife's direct deposit had not been delayed by our system issue, there would have been sufficient funds in your account and no NSF fees would have been applied. Since that is not what transpired, I have reviewed your account to ensure only the two NSF fees you mentioned were charged as a result of this error, and have reversed those fees, crediting the $70 back to your account. Once again, I do apologize for the inconvenience you experienced as a result of this unanticipated system issue.

Although the credit union, a non-for-profit financial service cooperative, is unable to redirect funds entrusted to us by members like you, to provide compensation in the manner requested in your letter, I can certainly understand your frustration at the impacts of our system issue. I have, however, enclosed two complimentary [redacted] movie tickets as a small gesture to indicate our understanding of your frustration. On behalf of the entire Desert Schools organization, I truly apologize for the inconvenience you and your wife experienced. If you have any further questions or concerns, please feel free to call me directly at ([redacted].

Sincerely,

Vice President - Contact Center Operations

Enclosure

cc: Revdex.com

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint. For your reference, details of the offer I reviewed appear below.

Two movie tickets to assuage us that our embarrassment at not being able to pay a bill at a supermarket for food should be accepted.

I really appreciate the letter from the VP who obviously took time out to look at our case and make a very pleasant offer. But he claims he works for a non - profit, so why do they charge interest rates? There is no such thing as a non profit financial institution, we can argue this point till the sun rises but at the end of the day the organization must make money on its money (or it's customers deposits) I do not mind having a debate about this with Jim as I am a trained Economist and believe I know a little about the nature of financial institutions. They work under the same or similar guidlines as [redacted] or [redacted].

I have told you what I want in recompense and maintain my right to charge them PRECISELY (as opposed to their indiscriminate charges) for false charging, loss of revenue, inconvenience

Regards,

Business

Response:

I am writing in response to the follow up letter you sent to the Revdex.com, indicating your displeasure with our earlier response. I appreciate the opportunity to clarify our position regarding your concerns.

In summary, your initial complaint was that your debit card was declined on November 6th, when you attempted to purchase groceries, because of the direct deposit from your wife's employer had not been credited as your expected. You requested a refund of the $70 in fees you were incorrectly assessed, and you asked that the credit union pay you $1,000 for the embarrassment and inconvenience of having your card declined at the grocery store.

In my previous letter I explained that a power failure affected our ability to process incoming ACH files, including that from your wife's employer. Until we were able to recover from this event and post all the direct deposits, our card approval decision for all members were based on account balances immediately prior to the outage. In your case, your account showed a negative balance of -$227.55, as a result of two previous transactions which cleared your account on November 5th. Had the direct deposit posted in the early hours of November 6th, as normal, your account would have returned to a positive status.

In my previous letter, I apologized for the inconvenience this caused and I refunded the fees to re-set your account balance as it would have been if we had no experienced a system outage. I recognize it is inconvenient and somewhat embarrassing when a payment card is declined. However, card declines, for any of a number of reasons, have also become so commonplace that there is no meaningful stigma to having a card declined. Consequently, I have nothing more to offer you than a further apology for your inconvenience, caused by our system outage; Desert School will not be offering any additional compensation.

Thank you again for bringing your concerns to our attention. We, at Desert Schools, genuinely appreciate your many years of membership. I hope my responses, and my explanation of events, confirm our commitment to you as a member.

Sincerely,

Vice President - Contact Center Operations

cc. Revdex.com

Desert Schools recently bragged about a 'real time transaction posting' update, which occurred over labor day weekend 2015. What this means is it gives them to ability to charge false overdraft fees as they feel! They do not give the option, nor chance to even do a simple transfer between other desert schools accounts. This is a scam! When I asked, do you benefit, me, the customer, when I make deposits? The answer was a simple, no sir. You will have to wait for deposits to clear, check clearing is at our discrepancy, so bring cash right now, or get hit with fee after fee. They also are willing to charge fees on fees, so its easy to get with $70 in fees for a $1 transaction. I have banked many other places, and this is by far the biggest scam I have seen. Do yourself a favor, and bank elsewhere!

I haven't seen great reviews about Desert Schools, but I've had an average experience. Here are the main things to note. Overall, it's been okay.

Pros:

Had 2 NSF fees. One was my fault, second was their fault. They waived both $35 charges.

Employees are pretty nice when I've been in branches, or on the phone.

Member for many years with minimal problems.

Cons:

Limited locations, and shared branching is not great.

Mobile apps and online self-service is horribly outdated.

Denied me an auto-loan with great credit score and decent history.

I went to secure an auto loan prior to shopping for a car. The information given (and assurances) were not true. A lot of the information given was not correct or there were "exceptions". I don't feel the loan products are understood by the representatives. It took multiple trips to the branch to sort out. I am still trying to get a payout day. Very, very disappointed. I also requested to speak to manager to no avail. What happened to such a great credit union? **Please shop around with different banks/credit unions/ or auto financing rather than just going to Desert Schools.

Review: In 2010 I had financial issues and as a result became late on my auto payments and my checking account became overdrawn. I did become current and made cash payments to do so through a shared banking location, when I amount owed in 2010/2011 I was told that I was current.

I called Desert Schools Federal Credit Union today to get my pay off balance. My auto loan has should be paid in full of January 2014. However the Desert Schools Federal Credit Union has added more than 9 months, $4721.79 in charges to my auto loan. Since 2010 I have requested that the statements be sent to me. They have not been sent to me. I was told that because my checking status is classified as undesirable, I cannot get them electronically or has electronic access. Ironically one needs electronic access to request statements via mail.

I don't understand the extra charges and no one will work answer my questions the phone. I was told that if I would like the past invoices, they will cost $3 per invoice.Desired Settlement: I need to see the charges from the delinquency of my auto loan, as well as the payments that I made that brought me current, in addition to the extra $4721.19 that has been added to my auto loan. I need an explanation of the charges.

I also need to receive a statement sent to every month at no cost to me.

Business

Response:

Your recent concerns lodged with the Revdex.com (Revdex.com) have been forwarded to my attention for response. I have reviewed your accounts and the situations you described as well as Deserts Schools' practices as they pertain to your accounts and have summarized my findings below.Your complaint indicates that you believe your loan is scheduled to be "paid in full" in January 2014. Your loan opened on 1/31/09 with a 72 month term and is scheduled to mature on 2/15/15. Please see the enclosed copy of your loan contract which confirms the loan term. The payoff amount of your loan as of today's date is $5,254.03. ($5,201.28 principal, $40.72 interest to date, $12 .00 accrued late fees) Continued and timely remittance of monthly payments throughout the remainder of your loan term will satisfy the remaining balance.The loan payments which were scheduled and due for October, November, December of 2011, and January and February of 2012 were not paid until 2/29/12. Due to the stage of delinquency during this time frame, the vehicle had been assigned for repossession. Our records indicate that you contacted our office on 2/29112 to discuss your loan delinquency and to make arrangements to bring the loan current. Funds in the amount of $2,726.50 were remitted by you via shared branching. A total of $2,563 .50 was credited to your existing loan balance and $162.00 was credited toward the accrued repossession assignment fee.Working with you to rectify the delinquency for your auto loan in February 2012 we also advised you of the condition of your checking account. Your checking account f irst became negative on 9/22/11. On 9/30/11 there was a deposit of $502.00 via shared branching. However, on 10/17/11 we received a returned check for non-sufficient funds from Arapahoe Credit Union. The return check caused your account to be overdrawn by -$516.14. We have enclosed a copy of the return check notice for your reference. Your overdrawn checking account was never resolved; as a result the credit union was forced to charge off the loss on 12/29/1 1. I have enclosed account statements from 10/11/11 through 3/11/ 12 which will provide the transaction detail that I've summarized above.Typically account services are restricted when Desert Schools incurs a loss on any account. Online access, monthly statements, and some branch services are restricted. Additionally, alerts are placed on the account in an effort to mitigate the risk of any further loss. These types of actions are outlined in The Statement of Terms, Conditions and Disclosure which govern all accounts at Desert Schools. Additionally, they are within the regulatory guidelines outlined by the NCUA and established business practices.It would appear from a review of your account statements that Desert Schools was not notified of your 2011 address change until you contacted our office in February of 2012 at which time you stated you resided in [redacted]. As you can see from the statement copies, we began sending them to your Centennial address at that time. However, the address referenced on your complaint to the Revdex.com is in [redacted]. We have never been notified of your change to that address. If we should now be sending statements to that address, please call us to confirm that.We appreciate the opportunity to respond to your concerns. We are hopeful that this information has provided the details you require for clarity regarding the present status of both your automobile loan and the charged-off checking account. Please contact me directly to make arrangements for repayment of the checking account. We are happy to work with you to re-establish your access to online services and monthly statements.

Review: I HAVE contacted [redacted] visited several branches & contacted corporate to get them to collect the money that is owed to them for a account I co-signed on from the main holder [redacted] and they have not tried to collect from him at all and I HAVE paid half of it already with the agreement that they would go after [redacted] for the balance and they are still trying to get me to pay it & now the froze my account that receives my SSI & DISABILITY check in every month & that is against federal law.Desired Settlement: I held up my end of the agreement and I paid half all I want is for them to hold up there end and go after [redacted] for the balance and leave me & my account ALONE..

Business

Response:

Your recent concerns lodged with the Revdex.com have been forwarded to me for review. I have evaluated your account and the situation you described, as well as Deserts Schools' practices as they pertain to your account and have summarized my findings below.Your complaint concerns a charged-off checking account on which you are a joint owner with Peter [redacted]. In your complaint you expressed your desire that Desert Schools should collect the remaining balance due from him, as 'agreed', and you described your alternate checking account, solely owned by you, as having been frozen.A review of our records does not show that an agreement of that nature was ever made with you. In fact, the Desert Schools Statements of Terms, Conditions and Disclosures states that the Credit Union can enforce overdraft liability in the joint account against any joint owner individually. The terms state specifically; "Each joint owner guarantees the signatures of the other joint owners and authorizes the others to endorse checks for deposit if they are payable to any of the joint owners. Each joint owner also authorizes the Credit Union to exercise setoff and enforce its security interest in the entire joint account, even though only one of the joint owners is the debtor; these rights exist irrespective of who contributed funds to the joint account. Similarly, the Credit Union can enforce overdraft liability in the joint account against any joint owner individually." (A copy of the Statements of Terms, Conditions and Disclosures are enclosed.)Because your joint checking account was charged off on 6/27/13; your personal, related checking account was restricted in accordance with Desert Schools' established practices and procedures. As you already know, this means you can only conduct withdrawals at a branch office. However; as you have visited a branch each month since the charge-off to withdraw the funds from your SSI and SSA deposits, you are also apparently aware that the funds on deposit were not offset to pay for the charged off checking, and were available for your use.I understand you have already visited your local branch office and have made arrangements with the representatives from the branch and from our Credit Assistance department to pay the remaining balance due on your charged-off checking account. I can confirm what our staff already explained: once the charge off balance has been paid in full, restrictions on your individual account will be removed and you can begin using the account normally.I appreciate the opportunity to respond to your concerns. I am hopeful that the information provided will assist in understanding the transactions and account ownership responsibilities. Please contact me directly if I can be of any further assistance.Sincerely,[redacted]Senior Director

Review: On 8/26 @ 2:48 pm I was contacted by the fraud department of Desert Schools Federal Credit Union and was asked by [redacted] if 3 transactions which happened today were legitimate. One transaction for $11.65 was valid but I told him the other 2 were not mine. He told me the card would be terminated immediately and I'd need to contact Customer Service to get another card. I then spoke to a supervisor [redacted] who told me the reason the transactions had probably been flagged as fraud was due to them being out of [redacted] and I live in [redacted]. She said if a tranaction is via the internet it says .com after it and none of these said that. I called Desert Schools Federal Credit Union customer service and was told first by [redacted] then by [redacted] and [redacted] that $105 had been allowed to go through, even though I'd told fraud that these charges weren't legitimate, and were pending on my bank account which means that money is unavailable to me until the dispute is settled which all 3 people told me would be approximately 2 business days. I then asked for [redacted] supervisor and spoke to [redacted] who told me he would work on getting "provisional funds" so the $105 can be immediately returned to my account.

"Desired Settlement: I want to be assured in writing that if this happens in the future that funds in my checking account are not tied up while Desert Schools disputes the charges. This time it was a small amount but a larger amount could have caused me a lot of problems. Desert Schools obviously questioned the charges enough to call me about them so it doesn't make sense that they would still let the charges go through. If there is a question about the validity of the charges they shouldn't be put through. I want to know that my funds are safe and there when I need them not tied up in disputes.

Business

Response:

I am writing in response to Complaint ID #: [redacted] you recently filed with the Revdex.com regarding unauthorized debit card transactions on your account. It is apparent from your letter that our member service representatives did not do enough to explain what had transpired, and the different resolution steps which were required as a result. Thank you for bringing your concerns to our attention and for giving me this opportunity to try to explain more effectively.

When our fraud department contacted you on 8/20/2014 regarding suspicious attempted charges from [redacted], you confirmed that these transactions were not authorized. The transactions were declined so they never impacted your account and your debit card was closed to prevent further attempts .

Unfortunately, two previous transactions totaling $105.00 had not registered as potentially fraudulent and had already been approved. This is not uncommon as there is no way to know, in most cases, whether a particular transaction is fraudulent. Instead, our system looks for suspicious trends, such as a number of transactions from one location over a short period of time. Since those transactions had been approved, resulting in a hold on your account, we were required by the procedures which govern the card payment system to instruct you to file a notice of dispute.

Our member service representatives accurately described the dispute process and the typical 1-2 day delay before provisional credit is typically applied. Where w e seem to have fallen short was in our explanation. We appear to have left you with the incorrect impression that, despite our call to confirm that certain transactions were actually fraudulent, we still allowed them to impact your account, tying­-up your funds for two days.

Based on the misunderstanding we created, you were understandably dissatisfied with our resolution. In response to your email we called to advise you that we had released the hold on your funds required to cover the charge authorization, and committed to expedite the provisional credit which will be required when those approved transactions actually post to your account.

From your experience so far, and even from this letter, I hope you can see that the underlying procedures which are designed to make sure that the card payment system works for all of us, are quite rigid. Although we have released your funds, the transactions totaling $105 are still out there.

Because our system already approved them, we are required to post them to your account. For that reason, it is critical that you contact our Member Assistance Center to complete a formal dispute. Having this required record in place will allow us to expedite the provisional credit, as promised.

I apologize for the frustration you experienced, and for the role our lack of clarity played in adding to the stress of being a victim of fraud. I hope this explanation fills in some of the gaps and reassures you that we take security seriously and are committed to protecting our members' accounts from fraudulent transactions, and to resolving disputed transactions quickly, in accordance with the regulations.

Thank you for allowing us to respond to this matter and if I can be of further assistance, please contact me at ###-###-#### or via e-mail at [redacted].

Sincerely,

Director - Member Assistance Center

I currently have an account with Desert Schools FCU-Card member Services. I started at a low interest rate but now they have increased my interest to 18 percent. I have been making extra payments every time I get paid but they keep charging me high interest fees. I called and asked if they could lower my interest rate. They said that is automatically reviewed every six months. I asked if they could send in a special request, I did not want to have to wait months. They refused, their customer service is cold-harded and uncaring. I WOULD NOT RECOMMEND THIS COMPANY