Spokane Teachers Credit Union

Review: I have three housing loans with STCU going back about 8-years. I mail my payments to STCU. To the best of my knowledge I have never been late...or so I thought. This month (February- 2014) I received a strange piece of paper showing about $90.00 in fines. Upon calling STCU I was informed these were fines for late payments back in 2011. They also said they could do deferred billing for such matters. I protested that their failure to notify me in a timely manner prevented me from changing my mailing date to prevent future late charges. In fact, this could be a very nice revenue stream for this business, taking advantage of folks who are making mailing errors and don't know it as the years roll by and the fines accumulate. This STCU policy is at the very least immoral and unethical. And I certainly would not want to continue doing business with such an unscrupulous firm.Desired Settlement: Refund all charges collected under this ill advised policy back to the affected customers and change company policy to promptly notify any client when a late fee is going to be assessed so that the customer has the information to correct the mailing date or at least protest in a timely manner.

Business

Response:

March 10, 2014

STCU has the worst customer service I have ever experienced with a financial institution. I will never return to them as a customer, nor recommend anyone to bank with them in the future. STCU failed to accommodate multiple attempts by multiple parties to cover a simple charge of $30 in spite of having nearly $10,000 deposited with them for the sole purpose of covering charges associated with one of their loans. STCU is more than willing to hold your money for their benefit, but is incapable of letting you handle your own money, and is willing to sever possible lifetime relationships over minimal amounts.
Recently, we financed a car loan through STCU with the sole intent of establishing credit quickly and easily. The loan was for a little over $10,000. My name was on the loan and my father co-signed for the loan, as I had little credit history and could not take out the loan by myself. We opened up an account STCU for automatic monthly payments of the loan, then deposited around 90% of the loan's total into the account. We set up for payments to be withdrawn from the amount we deposited with STCU to cover the amount due every month The first several months were successfully paid and no problems occurred; or so we thought.
During this time, there was failure to process existing insurance coverage which resulted in STCU purchasing unnecessary coverage for the vehicle and adding the cost to the loan. About 2 months later, we received a notification stating that we had fallen behind on payments by around $30 and STCU was sending us to collections for non-payments.
Obviously, this was strange, considering that regularly scheduled payments were being withdrawn from an amount that was already deposited with STCU. I called to address the issue and was finally told of an additional insurance cost. I asked to increase the monthly payment and was told that I was not authorized to increase payments, because STCU had incorrectly processed the loan in my father's name and that only he could change the monthly payment. He was out of the country and unavailable, so I paid the outstanding balance to avoid negative credit implications, and informed him of the situation.
My father went into a physical branch to resolve the issue and was told that he could not increase the monthly payment because he was not the primary borrower, and was not even allowed to know the outstanding balance for him to pay off. This is completely contrary to what we were previously told, and STCU continues to be incapable of allowing us to simply raising the monthly payments to avoid the issue altogether or authorize payment of the entire extra amount from our own money that was deposited with STCU. It is especially frustrating that all of this difficulty is happening when nearly the entirety of the loan is already deposited with STCU, yet they continue to lack the capacity to accommodate a payment we have attempted to make.
We hoped to conveniently process a simple loan, and unfortunately, were met with nothing but ineptitude, conflicting dismissals of the right to manage our own money, and an extreme lack of customer service throughout our terrible experience with STCU.
STCU could have been the bank we established a long term relationship with and would have gone to for future banking needs. Regretfully, STCU is not a financial institution that can be trusted to help us with our banking needs, nor one we plan on using in the future.

We've been with STCU since about 2004 and it has been wonderful. We had moved to them from what was previously [redacted] for several problems we were having with that bank and everyone was telling us how STCU was the opposite and actually helpful. We done car loans, refinancing and banking with them several times over the years and they always made the processes easier. Once we accidentally used the wrong account causing overdraft fees of about $200 in overdraft fees, it was our error but when we contacted them to see if anything could be done, they saw we'd never done anything like this before and kindly refunded those overdraft fees.
We are now in a town that doesn't have a STCU location, but they are so awesome to offer shared banking that we have two local banks we can visit to deposit into our STCU account and didn't have to go through the hassle of changing banks and all of our other accounts. In addition, we doing loans, they are great and fast at doing it via the phone and certified mail so we don't have to travel hours to visit a physical location.
Overall we are extremely please and would recommend them to anyone.

Review: STCUs computer system has always worked very well, however when they changed there acct numbers and upgraded there system at the beginning of 2012 something changed. If I had $25 in my acct, and bought something on my debit card for $10 and another for $5 and another one for $11, obviously I know my acct has been over drawn and I would receive an overdraft fee of $25 when my acct goes negative. Under this circumstance, with there new system STCU will charge me 3 overdraft fees, for each transaction that is pending. So if there is $25 in my acct and those 3 are pending when one post to my acct, for instance $10, then in theory my acct should still be positive of $15, however because they are going off of there pending transactions, immediately after my $10 posts then I receive an overdraft fee of $25. Then another 2 when the other transactions post. I asked if I go get gas and the gas station holds $75 from my acct as an pre-authorization then STCU says if there isn't sufficient funds to cover that then a $25 overdraft fee will be applied. Regardless the final amount that post to my acct. I have had multiple company's be on the phone with me fighting with STCU over this issue, [redacted] being the one that I got the furthest with, I had the [redacted] with me and [redacted] from STCU. We talked for about an hour at the time of this instance about 3 months ago, [redacted] at one point said that what you are doing is wrong and should be illegal and is close to being called fraud. [redacted] said I will refund the 3 overdraft fees if I removed the protection off of my acct, I told her that this is a huge inconvenience for me and any other member that has had issues. Her reply was I'm sorry you'll just have to get use to it. The main problem, they are charging people overdraft fees before the actual acct balance has gone overdrawn. I have considered moving banks but I have my car loan through them and have never had any issues until there upgrade. At one point I also called a random attorney and agreed.Desired Settlement: I want STCU to make this right, how can they make this better.

Business

Response:

Response to complaint #[redacted]

Sorry for the delay! Thank you

Business

Response:

November 21, 2013

[redacted]

SPOKANE, WA 99205

Re: [redacted] Complaint of Overdraft Fees

Dear Mr. [redacted]:

In response to your complaint filed to the [redacted] on November 7, 2013, STCU has outlined the following as an explanation of what transpired.

Our records indicate the last overdraft fees you received on your account was in July due to the [redacted] transaction you reference, as well as a transaction from [redacted]’s. As a courtesy to you, STCU refunded one of the $25.00 overdraft fees, in addition to the refund of $25.00 that [redacted] issued to you directly.

The fee that was assessed by STCU for the [redacted] charge of $16.49 was caused because your account had an available balance of only $9.57 at the time. This was due to a preauthorization hold of $7.36 to [redacted]s from July 3, 2013 that had not yet posted, as well as a preauthorization from [redacted] of $41.49 which never posted. Although the statement balance in your account was $16.93 at that time, it was not the actual amount that your account had available to use due to the two pending transactions being held. The actual amount that was available in your account at the time the [redacted] transaction came through was zero. After the [redacted] transaction posted your account became negative, and when the [redacted]s transaction posted it caused another overdraft fee. A total of two overdraft fees, one for the [redacted] charge and one for the [redacted]’s charge, were assessed by STCU. These fees were valid due to funds not being available.

You may find this informational page helpful, as it discusses STCU overdrafts and how to avoid a similar situation in the future: https://www.stcu.org/media/STCU_Debit_overdraft_FAQ-0513.pdf The advantage of preauthorization holds is that you can check your balance and get a more accurate picture of what is truly available to you before you spend. Another alternative to avoid overdraft fees is to remove overdraft protection from your account, in which case your card could be declined when funds are not available.

If you have any questions or would like additional information on this, please do not hesitate to call me directly.

Regards,

[redacted] | Card Services Assistant Manager

---------------------------------------------------

STCU Card Services

###-###-####

-------------------------------------------------

Consumer

Response:

[redacted]:

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

Your company didn't resolve the issue, I already know what your company did, and how it happens. What I don't agree with and have talked with multiple attorneys is, your company is handing out overdraft fees BASED ON PENDING TRANSACTIONS. If I printed out my acct it would show that my acct would still be positive if you didn't apply the first overdraft fee basing that fee off of pending transactions.

Regards,

Review: I am filing a complaint against STCU RE: Acct. # [redacted] because thus far my efforts to correct a situation with them have went nowhere. I have an auto loan that I co-signed for my daughter last May.

According to STCU, my daughter missed her December 2014 auto loan payment in the amount of $150. Unfortunately, I found out about this sitting in my mortgage lender’s office on January 5, 2015. We actually lost out on a home because of this reporting.

STCU has taken the stance that they cannot do anything about this if the payment was truly 30 days late. I am well aware that they are actually the only party who COULD contact the credit report agencies and make a goodwill adjustment on my behalf. It is not unheard of for a lender to change how something is reported, or to show goodwill to their clients. They could help us but unfortunately have chosen not to.

Reasons STCU should feel compelled to make a goodwill adjustment on my behalf:

1. At no point was I ever contacted by STCU that this account was about to go 30 days late. When I brought this point up to them, the lady I spoke with told me they didn’t have my phone number on the loan file. How is this even possible? As the co-signer, I am the primary person on the account and the reason this loan was even possible. She also indicated automated calls were placed to my daughter, that were unanswered (she doesn’t answer calls from unknown numbers, and no messages were left).

With something as damaging as a 30 days late, why did I not receive a mere phone call?? Every person on the loan should have been contacted, preferably by an actual person. It is not my fault that their file was incomplete and lacking my telephone number. I have a checking, savings and two auto loans with STCU. If an actual human had been looking into this account and not an automated system, surely I would have been contacted. We also received no written notices alerting us to the late payment.

2. The amount being reported leaves me to question if the payment was actually ever late. The payment is $150 but is being reported as $156. We had another issue on this loan, where STCU said we didn’t have the extra comp & collision insurance. They were charging us an exorbitant monthly fee of around $78/month for this insurance (which typically costs about $20/month). $156 would be approximately 2 months of this insurance coverage.

I think it is 100% possible that when my daughter made her December payment at the bank, and the funds went to pay the fee and not the car payment. The funds could have been misappropriated. I have not been able to get a clear understanding of why the amount being reported is not the payment amount.

3. This is the first late payment on the account. This needs to be taken into consideration. Furthermore, on January 6, I logged in and made 2 payments immediately while we straighten this out. My daughter has made 3 payments since then and the loan should be paid through April. We have demonstrated that if the payment was in fact missed, it was an oversight and not a lack of ability to make the payments. I have a much larger auto loan through STCU that has a perfect record (and probably my phone number on file).

I have had numerous auto loans throughout my life. I have never had such a rough time with a loan, especially a loan so small! Anyone who has ever had an auto loan and even come close to 30 days late, can attest to the fact that you can guarantee the lender will be notifying you in more ways than one. If there is an issue going on with a loan, typically a real person reaches out to try to correct the problem.

The bottom line is, I have worked, successfully on my credit for months to get it where it was before this fiasco. I should not have to pay the price of a 105 point credit drop because STCU negligibly didn’t have my phone number on file. If my credit was going to be impacted, I should have been reached out to, and this entire fiasco could have been avoided. We actually lost out on buying a home, inspection fees, etc. because of the severe drop in my credit.

Furthermore, I just checked my Experian report and Transunion report this morning, and it is indicating the loan is 30 days late, 2 times, for December and January now. As I have already indicated, the loan is paid through April and has definitely not been late twice, so I expect this to be corrected immediately. I expect this to be fixed immediately. If my January is being reported as late there is some serious concerns with your accounting and reporting systems. I have evidence for FOUR payments made in January, and an additional payment at the beginning of February.Desired Settlement: I want STCU to make a goodwill adjustment and rapidly remove (the now two!) 30 days late from my files with the 3 credit reporting agencies. This reporting is in error because had I been contacted even once, the payment would have been made IMMEDIATELY. I'm not even sure if the first 30 days late is accurate, but the second I have evidence that it is completely bogus. If STCU can’t find it in their heart to make a goodwill adjustment for the first 30 days late, they could at least remove the (now two) 30 days late marks due to their own negligence in this circumstance. I have spent more time trying to rectify this situation than anyone at STCU has ever spent actually looking into my account and trying to assist me, besides telling me "there's nothing we can do Mr [redacted]".

I also would like them to develop a better system of preventing issues like this from affecting other consumers. All information for everybody on the loan should be in the loan file, period. How do you ding my credit but not even have my phone number on file? If two people are being reported on, two people should be contacted and given the chance to correct the situation, period. STCU should ask the question, what could we have done better in this situation? Where did we drop the ball, and are we doing enough to communicate account issues with our clients? Do we have dedicated account managers on hand to reach out or are we relying too much on automated calls? This is a serious issue and I would expect MUCH better service from a local credit union, but surprisingly have had much better communication from larger outfits such as [redacted] for auto loans. I never would expect to be treated like such a number instead of a valued customer. I feel like STCU grabbed my social security number and financials to approve this loan and then has shown nothing but disregard for me as a customer.

Business

Response:

February 11, 2015

Re: Revdex.com Complaint Regarding Credit Bureau Reporting

Dear Mr. [redacted]:

We received your complaint letter from the Revdex.com regarding the reporting of late payments on your auto loan. First and foremost, I do apologize for your time and frustration in reaching a resolution in this matter. I have researched the situation regarding your auto loan and have determined the following findings:

· One clarification to your letter is that you are a joint borrower on the loan, not a co-signer as you had indicated. [redacted] is listed as the primary borrower, so all the early stage delinquency calls (from 15 to 30 days delinquent) will always be sent to her primary contact number. If you would like this primary number changed, please let us know.

· On the loan application, both you and [redacted] listed the same home address on [redacted]. We sent notifications addressed to you and [redacted] to this address at 7, 14, and 21 days delinquent prior to reporting anything to the credit bureau.

· What you were told about our limited ability to just change credit reporting was accurate, but we do have exception authority for that. We are bound by the Fair Credit Reporting Act (FCRA) which requires that we report all credit transactions as fairly and as accurately as possible. We would love to be able to change any late transaction as an act of goodwill, as you mentioned, but unfortunately regulation restricts that ability.

We have reviewed our internal processes for improvements on our end. Our loan documentation states that a notice to one borrower is notice to all. Your situation is unique in that you are not a joint borrower, by definition, or a user of the auto. You were added to the loan solely to ensure repayment, and your direct contact number was not called prior to the 30 day delinquency date. For this reason, our director of consumer lending has authorized, as a one-time exception, removal of the late payments connected to this loan on your credit file with all three reporting agencies. This correction will be done immediately on our end. It generally takes five to seven days for the bureaus to correct their reports.

We truly value your membership and apologize for any inconvenience this may have caused.

Sincerely,

Collections and Loan Service Manager

###-###-####

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business' 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 is satisfactory to me.