Interior Federal Credit Union

DOIFCU had originally agreed to remove the Debt Protection Coverage per the members request on September 18, and supplied the member a cancelation form to sign and return to DOIFCU yes"> The member did not sign or return the form as requested which slowed the cancelation process DOIFCU has researched this issue and have agreed to remove the DP coverage as requested and make all of the necessary corrections so the account will amortize per the original loan agreement These corrections were made on September 30, Unless we hear otherwise, DOIFCU considers this a resolved issue

DOIFCU had originally agreed to remove the Debt Protection Coverage per the members request on September 18, and supplied the member a cancelation form to sign and return to DOIFCU. The member did not sign or return the form as requested which slowed the cancelation process
DOIFCU has researched this issue and have agreed to remove the DP coverage as requested and make all of the necessary corrections so the account will amortize per the original loan agreement. These corrections were made on September 30, 2015. Unless we hear otherwise, DOIFCU considers this a resolved issue

Interior Federal Credit Union has been striving to provide all of our members with courteous and reliable service since Our goal has always been to provide a safe and sound foundation for our member’s financial futureRecently, the Credit Union received a member complaint regarding our
service and we appreciate the opportunity to respondThe member recently wrote a check which cleared the Federal Reserve System however it was not posted by our system due to an incorrect *** number on the checkThough in the past we were able to manually correct and post checks to the member’s account, we were not able to correct the check in question because the written amount differed from the numerical dollar ($) amount field and unfortunately it was returnedThe return reason code was inadvertently not changed to reflect this discrepancyThe Credit Union refunded the member an external returned check fee charged by the payeeTo ensure that the member’s checks are not returned in future, the Credit Union ordered a new set of checks with the correct *** line, and will absorb the check order costsThe member highlighted his year Credit Union membership and while we were disappointed to learn that we were unable to meet his expectations, we hope to continue that relationship for the future

The Interior Federal Credit Union (IFCU) LoanLiner
Agreement, page 3, paragraph (Other Provisions) speaks about the obligation
of our member to have a perfected
lien on any collateral given as security for
advance under the planIf a recorded lien is not received, the annual
percentage rate will automatically adjust to a default rate of 18.00% which
automatically increases the payment accordingly. Member signature
constitutes agreement with the terms of the plan.
Auto loans are secured by title and therefore receive a
lower interest rateIf the lien is not properly recorded the credit union no
longer has the same security and the loan therefore becomes a higher risk and
is preserved as an unsecured loan with a higher annual interest rate
IFCU’s process for tracking titles is strictly adhered to
Members have days from creation date of the loan to provide a perfected
lien After days a notice is sent
reminding that the credit union is still awaiting receipt of the recorded lien
After days a second notice is sent. After 120+ days a third and final notice is
sent If the title with a valid lien is
still not received at this point, days later the rate and payment adjust
accordingly and the new rate and payment is reflected on the monthly statement
This action takes place five full months after the loan has been
disbursed
IFCU makes multiple attempts (Notices, Courtesy Calls,
providing necessary DMV documents) in trying to resolve any title issue as
quickly as possible. In this particular case, two outbound foll
calls were made, three notification letters and three mailings that included
DMV forms. All procedures were followed and notifications were provided
Once a rate adjusts the payment automatically increases,
which can result in a default in payment
IFCU’s collection process is followed by strict guidelines Once a loan is in default a series of notices are
mailed notifying member of delinquency. IFCU also attempts to reach members
by telephone which provides another opportunity to find out the cause of delinquency
Once IFCU receives the title with the proper lien recorded
the loan rate and payment is adjusted back to the original terms of the loan
with the next payment dueMembers are still liable for all past due amounts In this case, the interest rate and payment
were adjusted back to the original terms of the loans as soon as IFCU verified
that the credit union had a valid security interest recorded for this
vehicle. The member is still liable for the increased payment and
interest from the time the rate change was made to the time a perfected lien
was verified

Case has been forwarded to the VP of Lending for review. Complaint lodged on January 19th but credit union wasn't notified of complaint until days after the complaint was filed on January 23rd. We will have our response as soon as possible

My apologies - I thought I submitted a response After further research management determined that although procedures were followed adequate notification was not provided reflecting the payment change An adjustment was made to the members account on August 8th Member was sent
correspondence on the adjustment made

DOIFCU had originally agreed to remove the Debt Protection Coverage per the members request on September 18, 2015 and supplied the member a cancelation form to sign and return to DOIFCU.
yes">  The member did not sign or return the form as requested which slowed the cancelation process.   DOIFCU has researched this issue and have agreed to remove the DP coverage as requested and make all of the necessary corrections so the account will amortize per the original loan agreement.  These corrections were made on September 30, 2015.  Unless we hear otherwise, DOIFCU considers this a resolved issue.

[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:
I sent out the requested information for the change of title.  Due to some unforseen reason, it never made its destination to the credit union.  This was around January/February.  I never got any notification that my payment automatically increased in April or to what amount, therefore I did not know what amount needed to be paid.  Due to not receiving any notification of a payment change, I could not effectively change my payment, which is automatically taken out of my payroll and directly deposited into the loan ( I never actually see this money).  When I went online and discovered something was wrong, that's when I attempted to find out what happened.  Again, I was not told the new payment amount, only that the interest went up.  I'm not a math savvy person and even after communicating with the credit union, I still never received any notification of a payment change or new payment amount.  I couldn't even find the information online for my account.  Due to lack of necessary information for payment change on part of the credit union, as well as my due diligence attempt at sending requested information earlier in the year, I am requesting that my account is brought to a current status with no past due or deficiency.
Regards,
[redacted]

Review: In April my loan changed from a loan account to a deposit account. I have direct payroll deposit to my loan account and every 2 weeks my payment is made. I started noticing partial payment online but due to the change from loan to deposit account, I could no longer view amount of payment due, interest rate, amount of payment towards interest or principal, due date, or anything really regarding my loan. I can view all of this information and more under a loan account. When I called, I was told it was due to a change in interest. I never received any paperwork telling me of a change, including a new payment amount. Due to not being informed of what this changed amount was, I could not effectively change my payment. This has now made my account delinquent. It now appears that the payment amount has changed again but I can only assume from the information that I can see online and I cannot get anyone to tell me over the phone. I also have not gotten any documentation for this either so it is only an assumption. There have been several requests for IFCU to change what I can view online for my account status or to get some sort of documentation informing me of what the amount was changed to. I again talked to a representative about a week ago and she had no clue what I was talking about so she requested that I send her screen shots of what I can view, so I did. I still have not heard anything back, even after emailing her again for status. Through phone calls and emails, I still cannot get an answer and somehow end up talking to a new person each time, thus making the process start all over with no results. I have received phone calls from IFCU and when I answer, they hang up on me or they don't leave a message. I call back and when I do get to talk to someone, they tell me that it wasn't them, must've been a coworker and to wait for them to call back. When I am able to make contact with someone from the collections department, they are unable to tell me what's going on or why because they say that they can only see that it's delinquent. It's been nearly 3 months now with over 15 calls and/or emails made. This is unacceptable customer service for not providing necessary information for proper payments, as well as conduct.Desired Settlement: The amount that I'm delinquent on to be $0 as I was never informed of a payment amount change and for my account to be brought to current. I also want my auto loan to be returned to a loan account rather than a deposit account so that I can view what is going on with my loan.

Business

Response:

My apologies - I thought I submitted a response. After further research management determined that although procedures were followed adequate notification was not provided reflecting the payment change. An adjustment was made to the members account on August 8th. Member was sent correspondence on the adjustment made.

Review: The details of my loan were changed without me being notified. When I called to find out what was going on, I was told that the interest went from 1.9% up to around 18%, thus increasing my payment. I have made every payment on time due to it coming directly out of my paycheck as agreed upon when the loan began. I was never provided any documentation about my payment arrangements being changed, that were going to change or that they have changed. I do not have any documentation about the change of interest rate or payment amount. It does not tell me online. Last Friday I received a phone call that my account had been turned into the collections department and they wanted to know when I would be able to make a payment. I said that I've made every agreed upon payment, in full and on time. This account should NOT be in collections.Effective April 1st (as I later found out on my own) changes went into effect on my loan for my 2012 [redacted]. In January I had sent the requested documentation for title transfer with appropriate fees paid but for some reason it had not arrived. I resent it in mid-April after I contacted DOIFCU. I continued checking my account online to see if anything had been updated. Early May I made more phone calls & was told that my account would not go back to its original status until the title was received. Early May I made additional contact to DOIFCU & Oregon DMV to check on status. The DMV hadn't even received my paperwork until around May 9th and would take about 5-6 weeks to process. These delays are not of my control. It is nearly mid-June and still no changes. My online account should tell me payment amount, due date, interest & principal, just as it does with my other loan. It does NOT for this loan since you changed it. Not a single payment has been missed or short and this loan should be in good standing.Desired Settlement: I want my account put back to the original agreement of biweekly payments at $144.82 at 1.99%, with the automatic payment thus decreasing the interest back to 1.7%, I do believe is where it was at. I want this to be retroactive to April 1, 2014 and all "missed/short" payments to be updated to current. I should not owe anything at this time other than my original biweekly payment as originally planned, at the agreed upon amount and interest rate as was signed for in September 2013.

Business

Response:

The Interior Federal Credit Union (IFCU) LoanLiner

Agreement, page 3, paragraph 14 (Other Provisions) speaks about the obligation

of our member to have a perfected lien on any collateral given as security for

advance under the plan. If a recorded lien is not received, the annual

percentage rate will automatically adjust to a default rate of 18.00% which

automatically increases the payment accordingly. Member signature

constitutes agreement with the terms of the plan.

Auto loans are secured by title and therefore receive a

lower interest rate. If the lien is not properly recorded the credit union no

longer has the same security and the loan therefore becomes a higher risk and

is preserved as an unsecured loan with a higher annual interest rate.

IFCU’s process for tracking titles is strictly adhered to.

Members have 60 days from creation date of the loan to provide a perfected

lien. After 60 days a notice is sent

reminding that the credit union is still awaiting receipt of the recorded lien.

After 90 days a second notice is sent. After 120+ days a third and final notice is

sent. If the title with a valid lien is

still not received at this point, 30 days later the rate and payment adjust

accordingly and the new rate and payment is reflected on the monthly statement.

This action takes place five full months after the loan has been

disbursed.

IFCU makes multiple attempts (Notices, Courtesy Calls,

providing necessary DMV documents) in trying to resolve any title issue as

quickly as possible. In this particular case, two outbound follow-up

calls were made, three notification letters and three mailings that included

DMV forms. All procedures were followed and notifications were provided.

Once a rate adjusts the payment automatically increases,

which can result in a default in payment.

IFCU’s collection process is followed by strict guidelines. Once a loan is in default a series of notices are

mailed notifying member of delinquency. IFCU also attempts to reach members

by telephone which provides another opportunity to find out the cause of delinquency.

Once IFCU receives the title with the proper lien recorded

the loan rate and payment is adjusted back to the original terms of the loan

with the next payment due. Members are still liable for all past due amounts. In this case, the interest rate and payment

were adjusted back to the original terms of the loans as soon as IFCU verified

that the credit union had a valid security interest recorded for this

vehicle. The member is still liable for the increased payment and

interest from the time the rate change was made to the time a perfected lien

was verified.

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:I sent out the requested information for the change of title. Due to some unforseen reason, it never made its destination to the credit union. This was around January/February. I never got any notification that my payment automatically increased in April or to what amount, therefore I did not know what amount needed to be paid. Due to not receiving any notification of a payment change, I could not effectively change my payment, which is automatically taken out of my payroll and directly deposited into the loan ( I never actually see this money). When I went online and discovered something was wrong, that's when I attempted to find out what happened. Again, I was not told the new payment amount, only that the interest went up. I'm not a math savvy person and even after communicating with the credit union, I still never received any notification of a payment change or new payment amount. I couldn't even find the information online for my account. Due to lack of necessary information for payment change on part of the credit union, as well as my due diligence attempt at sending requested information earlier in the year, I am requesting that my account is brought to a current status with no past due or deficiency.

Regards,