S I U Credit Union

Initial Business Response /* (1000, 5, 2015/08/31) */
Contact Name and Title: [redacted] Auditor
Contact Phone: XXX-XXX-XXXX
Contact Email: [redacted]@siucu.org
On May 20th, 2012 (co-maker) and (maker) signed a loan agreement to purchase a 2009 Pontiac G3 from our Indirect Loan partner...

[redacted] of [redacted] According to the contract completed at the dealership, the first payment was due on July 4th, 2012. Included in the funding packet from the dealer was an ACH agreement for automatic payments signed by co-maker to electronically withdraw $254.90 from [redacted] Bank on the 19th of every month beginning June 19th, 2012 and apply as payment to the loan with SIU Credit Union. The first payment was set to be withdrawn prior to the first due date, therefore not causing any delinquency to the loan.
The loan became delinquent after the January 4, 2013 payment made on December 19, 2012 was returned NSF from [redacted] Bank. A delinquency notice was sent to the member at that time to notify them of the delinquent status of their loan. The Credit Union did not receive the next ACH payment from [redacted] Bank until January 22, 2013 making the loan past due 18 days when the payment was received (there is a 10 day grace period on loans before late charges are assessed). ACH payments continued the following month on a monthly basis until there was another NSF on August 19th, 2014 from [redacted] Bank. A payment was made to cover the returned August 19th ACH payment on September 4th, 2014 at our Carbondale East Branch location. The loan has continued to pay by ACH each month outside the 10 day grace period causing a late charge to be assessed. A total of 26 delinquent notices were sent to the address of record for the loan to both the maker and co-maker.
The co-maker talked to our Collections Manager on August 19, 2015 regarding the most recent return from [redacted] Bank because the bank assessed a fee. The co-maker informed the Credit Union that he had changed banks and a new ACH with the correct date of the 4th of each month would be forthcoming starting with the September 4, 2016 payment. A fee of $36.00 was charged by [redacted] Bank for the most recent transaction. Due to moving of the account, this fee received a courtesy refund from the Credit Union along with a courtesy refund of $50.00 for late charges. The loan is currently due for the September 4, 2016 payment as assuming the ACH payment posts without issue from his new bank, as directed by the co-maker, the loan will be current.
In response to the member's requested action, $50.00 of the late fees have been refunded. Although the member's NSF payment caused the late fees, SIU Credit Union will refund half of the remaining late fees (totaling $157.42) as a courtesy.