Moore's Body Shop

We have received your complaint to the Revdex.com and have completed our investigation that has been detailed chronologically below....


 
On 8/27/16 Ms. [redacted] was aware that her phone was lost/stolen.
 
On 9/10/16 two transactions were authorized in Mexico for a total of $72.41. On this same day subsequent transaction attempts from Mexico were blocked for suspected suspicious activity.
 
On 9/12/16 Kinetic contacted Ms. [redacted] to confirm the validity and to investigate the two transactions processed in Mexico. It was at this time Ms. [redacted]s informed us that her phone had been stolen 16 days earlier and that she has stored photographs of her plastic card, front and back, along with a photo of her PIN (Personal Identification Number) mailer. Ms. [redacted] told us that she believed that this is how someone got her plastic card information. It wasn’t until 9/12/16 that Kinetic became aware that her plastic card and PIN information had been photographically stored on her phone and that the phone had been lost/stolen.
 
If we had been contacted by Ms. [redacted], no later than 8/30/16, and were made aware of this information; then we would have been able to block the card, thus preventing the transactions and her liability would have been limited to $50. Due to the fact that Ms. [redacted] failed to notify Kinetic within two business days we denied her claim according to Regulation E and held her liable for the entire $72.41. Regulation E states the following:
 
(a) Conditions for liability. A consumer may be held liable, within the limitations described in paragraph (b) of this section, for an unauthorized electronic fund transfer involving the consumer's account only if the financial institution has provided the disclosures required by §205.7(b)(1), (2), and (3). If the unauthorized transfer involved an access device, it must be an accepted access device and the financial institution must have provided a means to identify the consumer to whom it was issued.
 
(b) Limitations on amount of liability. A consumer's liability for an unauthorized electronic fund transfer or a series of related unauthorized transfers shall be determined as follows:
 
(1) Timely notice given. If the consumer notifies the financial institution within two business days after learning of the loss or theft of the access device, the consumer's liability shall not exceed the lesser of $50 or the amount of unauthorized transfers that occur before notice to the financial institution.
 
(2) Timely notice not given. If the consumer fails to notify the financial institution within two business days after learning of the loss or theft of the access device, the consumer's liability shall not exceed the lesser of $500 or the sum of:
 
    (i) $50 or the amount of unauthorized transfers that occur within the two business days, whichever is less; and
 
    (ii) The amount of unauthorized transfers that occur after the close of two business days and before notice to the institution, provided     the institution establishes that these transfers would not have occurred had the consumer notified the institution within that two-day period.
 
 
Although Kinetic was within its rights to deny the claim according to Regulation E, we have decided that we will assume the loss on the behalf of Ms. [redacted]. A credit for the total amount of $72.41 has been deposited to Ms. [redacted]’s savings account on 10/04/16.
 
If you have any additional questions below please feel free to contact us.

To Whom It May Concern:
I did not check the box marked "Modification Agreement"  it was done by TICFCU - and they processed that part of the form.  Therefore, when I selected the life and disability insurance options, it was my understanding someone at TICFCU would...

check the box "Subsequent Election for Voluntary Payment Protection" when they saw I had made those selections. and get back to me regarding electing those extra protections.  I think it is an extremely poor business practice on the part of Kinetic Federal Credit Union fka TIC Federal Credit Union to:  1) not go over the forms with their customers upon completion (this would have obviously been too much work for the representative I turned the form into - who DID look at the form in my presence; 2) not follow-up with their customers when it is clear that the customer has made an ellection other than the original intention of the form (when not addressed by the person taking the form from the customer); and 3) to act as if they are devoid of any culpability simply because I did not check the box titled "Subsequent Election for Voluntary Payment Protection"  when it is beyond clear that my selecting the life and disability insurance options meant I wanted those extra protections.
I have reported Kinetics incompetence to State of Georgia agencies who are also looking into this matter as well as the Nation Credit Union Administration.

[A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me.  I will wait for the business to perform this action and, if it does, will consider this complaint resolved.
Regards,
[redacted]

The loanliner “subsequent action” form is a multi-purpose form that is used by the credit union to communicate to members any changes that have been made to their loan accounts. The form is for credit union use only and not designed for members to use to communicate changes to the credit union loan. In this case one form was issued for a change in rate and another was issued when a due date change was made. The “subsequent action” form does have a section that allows us to indicate to members that their request to add credit life and/or credit disability insurance has been completed. This section of the “subsequent action” form was never intended to be completed by the member and used as a request for credit life and credit disability services. However after reviewing the forms we do believe it was Mrs. [redacted]’s intention to add payment protection to her loan in 2013. Therefore we have reached out to the insurance company that provides this service and they have agreed to allow Mrs. [redacted] to file her claim. It will be up to the insurance carrier to approve the claim. Mrs. [redacted] needs to contact [redacted] at the credit union immediately to aid us in the filing of her disability claim.

[A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me.  I will wait for the business to perform this action and, if it does, will consider this complaint resolved.
Regards,
[redacted]