First Commonwealth Federal Credit Union

LINE-HEIGHT: 115%; mso-add-space: auto">[redacted] had a credit card secured by a savings account.  On August 5, 2012 a credit card charge was posted to [redacted]s account from [redacted] in the amount of $404.16.  This charge exceeded [redacted]s credit card limit.
Several unsuccessful attempts were made by our Collections Department to contact [redacted] from 9/12/12 through 9/25/12 for collection.
9/12/12 – Credit Union employee called number on file – out of service
9/20/12 – Credit Union employee found a phone number for member’s mother living at same address but that phone number was out of service.
9/20/12 – Credit Union employee called a phone number on an unrelated account ([redacted]) but the voicemail stated “[redacted]”. Employee left a message. No call back.
9/25/12 – Credit Union employee pulled credit report – all collection accounts, no job listed
On September 26, 2012 the amount on hold in [redacted]s savings account was transferred in the amount of $2000.17 to pay towards the credit card balance leaving a balance due from the [redacted] charge.
The remaining balance for the car rental was charged off totaling $458.35 on March 28, 2013.  Credit Management Company has been contracted to collect this debt.
 
Because the credit card debt is still due, it will remain on [redacted]s credit report. [redacted] may make arrangements for payment by contacting Credit Management Company at ###-###-####.

Tell us why here... On...

12/30/2015 we ordered coupons. She had already made 8 payments on the loan so only 4 coupons were mailed to her. The coupons were mailed to her physical address on 1/1/2016.  
On 1/13/2016 she came into the branch asking why she had not received her coupons. When we researched it we saw that the coupons were mailed to her physical address instead of her PO Box.
 
The issue was corrected on 2/9/2016 and a new set of coupons were ordered for the member. This time she was only going to receive 3 coupons.
 
On 2/16/2016 we confirmed that the coupons were mailed to the member at the PO box on 2/12/2016.
 
On 4/20/2016 the member was in the branch to make a payment and she used her coupon to do so, proving that she received them.
 
4/20/2016 was her 12th payment on the loan. We confirmed that the next 12 coupons are being mailed to her PO Box today.
 
I called the member to talk to her about this situation. She said no one explained to her.
The issue is resolved.

In Jo Ann B[redacted]'s absence, this response is being submitted by:
Brian W[redacted]Chief of Marketing & Retail DeliveryFirst Commonwealth FCU[redacted]###-###-####
10pt">The complainant has had issues with nonsufficient funds/courtesy pay dating back to 2013, long before his wallet was stolen in November 2014. To avoid these fees, he was advised to set up overdraft protection on his checking account, which he did. With this protection, if funds were not available in his checking or savings, they would be transferred from his First Commonwealth FCU [redacted] credit card, acting as a line of credit. The [redacted] covered his overages until it was run up to the limit in February 2014. Then he started incurring fees again, because no funds were available to cover the items that were clearing his checking account. The reason why he eventually incurred fees, even though the items were not paid by Courtesy Pay, is because at that point there was nothing left to pull for overdraft protection and no availability with Courtesy Pay. These were nonsufficient funds fees. Two of these fees were refunded back in March 2014 as a one-time courtesy.
At the time he came in on January 6, 2015 to request fee refunds, he was 60 days delinquent on his [redacted] card payments. Also, a Courtesy Pay repayment plan, to settle the fees he had incurred, was sent in November 2014 and was not acknowledged. A second was sent in January 2015. The decision was made to refund him one more fee during his visit on January 6, even though we had already refunded two fees in March 2014 as a one-time courtesy.
Please also be aware that even if this member were “opted out” of Courtesy Pay (which pays items rather than rejecting them when there are nonsufficient funds), he still would have incurred the same amount in nonsufficient funds (NSF) fees. The fee for Courtesy Pay and NSFs is the same, $33 per item. The difference is that NSFs reject the items altogether, while Courtesy Pay pays them – up to a limit – allowing the account to go into a negative balance status. Any time a Courtesy Pay or NSF fee is charged, the member receives notification. These items are also detailed in the individual's monthly statements.
First Commonwealth is willing to refund the $231 in fees he’s asking for, on the condition the checking account be closed. However, there will still be a remaining balance of $99.21 owed (as of 1/22/2014) even after the fees are reversed, because of the negative balance in his checking account. This would need to be settled  in order to close the checking account. He would still be able to maintain a savings account and would also still be responsible to pay back the balance on his [redacted] credit card, upon closure of the checking account.
To close his checking account, this individual can visit any branch.

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]
 Complaint: [redacted]
I am rejecting this response because:
This is [redacted]. I believe there were some errors in posting payments thru Firstcommonwealth, but that's not the point.  
1) I couldn't put additional monies on because my income was enabling me to do so. I did make the 162.62.  I sent the payments through my banks electronic payment center and I told them I sent a payment for nov for 162.62 and they would most likely get it monday. So that saturday they took my car.  I recall them saying I was like 400.00 some behind . so - 162.62 doesn't make the car that far behind to get caught up with my income to start being back on track from being on disability from surgery that I had.  My employer did not do the correct paper work and I did not find that out till I called HR and stated "what's going on with my payments?" I gave them what I could.  I do not feel I that my car should have be repoed esp since they got 162.62 that monday!!!   That cost me emotional distress and a days loss of wages.  I have a mental illness and that happening to me, with me feeling it was unjust, was not good!!!    They did call a lot and I told [redacted] in collections my pay sch etc.  It wasn't like I was months behind.... I feel this was unjust and total lack of understanding from FCWFCU concerning I had surgery and was doin my best...  IT WAS WRONG!!!   
2) I did ask for my payment history and they told me I would have to pay per page and that came out to 90$??  Why would MY ACCOUNT INFO history have a charge for my records..   
Regards,
[redacted]

Since the written authorization to continue the stop payment order was never received, the stop payment order was removed, the check was presented twice and incurred total NSF fees of $66. We are reversing all the fees and crediting the account the requested $66.

Review: WITH NO VERBAL AND/OR WRITTEN NOTICE OF ANY ACTIONS CONCERNING MY ACCOUNT WITH THE CREDIT UNION

THEY RE-POED MY CAR W/OUT NOTICE, EVEN AFTER RECEIVING PAYMENT WITHIN IN 1 DAY OF THEM TAKING ME CAR, THEY WOULD NOT RELEASE MY CAR BACK TO ME.

THEY WERE VERY UNREASONABLE AND NOT WILLING TO DISCUSS THE ISSUE TO HAVE AN EFFECTIVE OUTCOME. LOST WAGES AND WAS VERY CONFUSED WHY THEY WOULD TAKE THE CAR EVEN AFTER PAYMENT AND SITUATION OF INCOME WAS EXPLAINED.

THIS WHOLE SITUATION I FEEL WAS UNJUST UNFAIR UNREASONABLE AND JUST PLAIN WRONG!!!!!Desired Settlement: I FEEL THEY SHOULD REPLACE MY AUTO W SIMILAR AND/OR SAME MAKE AND MODEL.

Business

Response:

On May 9, 2011, [redacted] financed a 2011 [redacted] through [redacted]., [redacted]

The payment terms were 72 monthly payments of $354.05, beginning June 23, 2011.

The member defaulted on the first payment. On June 24, 2011 a payment of $250.00 was made toward the regular payment of $354.05. On July 12th a $70.00 payment was made and on July 21st a $100.00 payment was made to satisfy the June 23rd payment.

The June, July and August payments were all past due.

On July 6, 2011, a collector spoke with [redacted] who said she took this loan out for her daughter, [redacted], who was supposed to set up ACH deposit to cover the loan payment. The loan was not brought current until September 1, 2011. Her daughter never set up the ACH and was making payments with personal checks but, only sending partial payment amounts.

On June 1, 2012, the payment frequency was changed from monthly to bi-weekly payments of $162.62.

Loan payments were not always made on time and whenever the collectors would call [redacted] she would say that she has to call her daughter because she makes the payments. The collectors advised her that this is affecting her credit.

March 22, 2013, [redacted] told the collector that her daughter is only working part time now due to an injury. She was told that she is responsible for the loan payment so, she would have to make the rest of the payment if her daughter cannot pay. Again, she said she’d talk with her daughter. In May 2013, [redacted]’s daughter called and said she is now on disability and waiting for her checks so, she can’t bring the loan current. The collectors continued attempting to reach [redacted] to let her know that her daughter had not brought the loan current.

On July 8, 2013, the daughter called and left a message on the group VM stating that she is on disability, that we know that, and she feels the collector is harassing them by continuing to call her mom. She said the collector should not call them as often, she knows the loan is behind, but, it’s not that far behind.

August 6, 2013, [redacted] returned the collector’s call telling us that her daughter has returned to work but was waiting for her first check. From August 13th through September 6th, 5 calls were placed to [redacted], with no response. On September 6th the daughter called and set up a payment arrangement, beginning September 13, 2013. She said she would pay the regular bi-weekly payment plus a little extra to catch up, but she didn’t make extra payments. The collector left a message again on September 27, 2013 to let [redacted] know that her daughter was not following through with making extra payments to get the loan caught up and now actually missed a regular bi-weekly payment, so the loan is now further behind. There was no response to the call.

The repossession order was put out because [redacted], who was on the loan, was not calling back, and the daughter, who was supposed to be paying, had made an arrangement which, she defaulted on.

The car was repossessed on October 5, 2013. [redacted] was given the steps to redeem: complete a budget session through BALANCE (a debt counseling service partner of First Commonwealth), submit current verification of income and a copy of the insurance policy.

Review of [redacted]’s budget showed that she was struggling with her own finances and was on a debt management program with [redacted]. She had pension income and social security income totaling $2,789.00 a month, but her expenses were $3,222.00. Her credit score was 575. Her budget proved that she was not able to afford the car and she told [redacted] that this is her daughter’s car and she is supposed to be paying the loan but, fell behind. We suggested that [redacted] have her daughter refinance the car into her own name because, obviously, [redacted] was trying to repair her own credit and this delinquent loan was hindering her from doing so.

Throughout a good portion of the history of the loan, payments were not made on time. [redacted] would either not return calls and/or ignore late notices. When the collector did speak with her she would tell the collector to contact her daughter since she pays the loan.

In response to the member’s claim about not receiving verbal and /or written notice of any actions concerning her account, numerous phone calls were made and late notices were sent which, included the following statement, “FAILURE TO RESPOND TO THIS NOTICE MAY RESULT IN THE LOSS OF CREDIT UNION PRIVILEGES AND/OR LEGAL ACTION.”

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

This is [redacted]. I believe there were some errors in posting payments thru Firstcommonwealth, but that's not the point. 1) I couldn't put additional monies on because my income was enabling me to do so. I did make the 162.62. I sent the payments through my banks electronic payment center and I told them I sent a payment for nov for 162.62 and they would most likely get it monday. So that saturday they took my car. I recall them saying I was like 400.00 some behind . so - 162.62 doesn't make the car that far behind to get caught up with my income to start being back on track from being on disability from surgery that I had. My employer did not do the correct paper work and I did not find that out till I called HR and stated "what's going on with my payments?" I gave them what I could. I do not feel I that my car should have be repoed esp since they got 162.62 that monday!!! That cost me emotional distress and a days loss of wages. I have a mental illness and that happening to me, with me feeling it was unjust, was not good!!! They did call a lot and I told [redacted] in collections my pay sch etc. It wasn't like I was months behind.... I feel this was unjust and total lack of understanding from FCWFCU concerning I had surgery and was doin my best... IT WAS WRONG!!!

Review: they ran my credit without my permission and I want the inquiry off my credit reportDesired Settlement: a letter saying it was there mistake and it will come off

Business

Response:

Our member, [redacted] applied for vehicle financing at [redacted] and the application was forwarded to First Commonwealth on 11/1/2013. We pulled a credit report when underwriting this application. The member later applied for financing at [redacted] and the application was forwarded to First Commonwealth on 1/8/2014. Because it was more than 30 days since the previous application, we pulled another credit report. Soon after, on 1/15/2014, the member applied directly with First Commonwealth for a personal loan. We did not pull another credit report because we were able to use the one that was pulled one week earlier.

Review: Summary: Accidental charges to First Commonwealth FCU checking account.

Reason: In November 2014 my wallet was stolen. I had to cancel all of my cards, and change my [redacted] bank account due to my account number being in my wallet at the time. This led to [redacted] and [redacted] money transfer services defaulting to my other available payment option, First Commonwealth FCU checking account. This was unknown to me. There was not enough money in my First Commonwealth FCU account to cover the charges (which would have been covered if correctly directed back to my [redacted] account) so First Commonwealth's proprietary Courtesy Pay kicked in. Unfortunately [redacted] and [redacted] did not receive notification of lack of funds as the problem transactions were ACH and First Commonwealth's proprietary Courtesy Pay automatically covered the first four (4) charges, and denied the next four (4). All of this remained unknown to me as the charges were paid by Courtesy Pay until I received lack of funds notifications from [redacted] and [redacted] on the last four charges. These charges were denied by First Commonwealth FCU.

The value of the first four (4) charges covered by Courtesy Pay totalled $111.99 with a total Courtesy Pay charge of $33 x 4 for $132 fee from First Commonweath FCU. The Courtesy Pay fees were $20 more than the amount originally charged to my account. The real issue comes with the next four charges. [redacted] attempted to charge $1.06 but was denied, then recharged and denied twice more resulting in $99 of fees for a $1.06 charge which First Commonwealth did not even pay. To be clear, I was charged $99 for an attempted $1.06 ACH transfer which was not even paid. To complete the story one subsequent charge in the amount of $37.50 was denied and not paid by First Commonwealth FCU yet still resulted in a fee of $33.

In summary for a total of $150.55 in attempted transfers out of my account $111.99 ($12.78 covered by funds) was covered under First Commonwealth's Courtesy Pay all of which incurred $264 worth of fees.

I went in to First Commonwealth's offices to attempt to have the fees removed. First Commonwealth agreed to remove the first fee but refused to remove the remaining fees even though they resulted from the same situation.

While First Commonwealth did send an automated notification at each event, the subject was “An eNotice is now available” and the body stated “An ACH Notice is now available for viewing.” This did not alert me to any problems as ACH transactions are common in my banking account.

Due to First Commonwealth's proprietary Courtesy Pay program [redacted] and [redacted] were not notified that my checking account had insufficient funds and allowed additional charges to occur resulting in more Courtesy Pay fees instead of denied charges. Please note that I did not opt into First Commonwealth's proprietary Courtesy Pay, this account was set up years ago by my parents when I was a child, so I was completely unaware of how Courtesy Pay functioned. Coincidentally, my parents opted out of Courtesy Pay a few years ago due to experiencing a situation similar to what I am now.Desired Settlement: Removal of all remaining fees (7 left at $33 each) for a total of $231 credited back to my checking account.

Business

Response:

In Jo Ann B[redacted]'s absence, this response is being submitted by:

Brian W[redacted]Chief of Marketing & Retail DeliveryFirst Commonwealth FCU[redacted]###-###-####

The complainant has had issues with nonsufficient funds/courtesy pay dating back to 2013, long before his wallet was stolen in November 2014. To avoid these fees, he was advised to set up overdraft protection on his checking account, which he did. With this protection, if funds were not available in his checking or savings, they would be transferred from his First Commonwealth FCU [redacted] credit card, acting as a line of credit. The [redacted] covered his overages until it was run up to the limit in February 2014. Then he started incurring fees again, because no funds were available to cover the items that were clearing his checking account. The reason why he eventually incurred fees, even though the items were not paid by Courtesy Pay, is because at that point there was nothing left to pull for overdraft protection and no availability with Courtesy Pay. These were nonsufficient funds fees. Two of these fees were refunded back in March 2014 as a one-time courtesy.