ComplaintsforArkansas Federal Credit Union

• Initial Complaint

  06/26/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  In 2018 my brother passed away. He left his house to a trust for his/my father who was living with him at the time, to continue living there until he passed. Our father died in 2020. In inherited half the house along with my brother who inherited the other half. An appraisal was made by an independent appraiser, it was for $210,000. I purchased half the house from my brother, and obtained a loan through Arkansas Federal Credit Union for $113,700. When reviewing my payment schedule, I noticed something called PMI. Until this moment I was unaware of what PMI meant. As you may know, it protects the mortgagor from loss. The PMI is in place until the loan is at 79% of the value of the home. At no point did I have less than 40% equity in my home, so I always met this figure, though I was charged for PMI for 3 years. I am told, I signed something saying they can use the original purchase price as value. “You should have read what you were signing” I signed those papers in good faith. Who reads all those papers word for word at signing? It makes no sense to me, it serves no purpose, just a waste of my money. If the worst happened to ‘the investor’ who bought my loan seemingly within seconds after it was established, had to foreclose, even then they would not make a claim against the PMI as there is so much equity in the house. I gave as a counter, what if I only paid $10,000 for the house? I did not get a response, but the way I read these revelations, even then I would have to pay PMI until the loan was under $7,900. Ludicrous, ‘the investor’ is covered, yet I am required to pay it. I might be legally bound because of what I signed, that does not make it right. It is also odd, my homeowner’s insurance is also with AFCU. They value the property for $300K and base my rates on replacement cost of $450K. So one area of AFCU has the value very high, the other quite low. Each to my detriment.

  

  Business response

  07/10/2024

  Thank you for the opportunity to address your concerns regarding the Private Mortgage Insurance (PMI) on your mortgage loan.
  
  After reviewing your mortgage loan and the associated documentation, I can confirm that the PMI on your loan is correct. It is correct that the current loan amount compared to the appraised value is below the threshold for requiring PMI. However, the Loan-to-Value for purchase transactions are figured a bit differently.  For purchase transactions the Loan-to-Value is calculated by dividing the loan amount by the lesser of the purchase price or appraised value.  Below is the breakdown for the LTV calculation for your specific loan.
  
  As the calculated LTV for your loan was over 80% at origination, Private Mortgage Insurance was required.  However, you can request that PMI be removed once certain criteria are met.  Below are the criteria used to determine if PMI is eligible to be removed for your loan.
  
  The request to remove PMI is made in writing.
  No payment 30 or more days past due in the last 12 months; and no payment 60 or more days past due in the last 24 months.
  There are no junior liens (such as a second mortgage) on your home.
  An applicable valuation is performed to confirm that the home has either not declined in value from when you first purchased it, or that the current value supports an LTV that would allow for PMI to be removed.
  
  Depending on the type of valuation required for your property, the price of these valuations can range from $190-$450.  If you would like to move forward with requesting the removal of PMI, please reach out to me directly, and I will work with our team to coordinate the necessary steps to facilitate your request.
  
  I am including the following attachments that include information from the Consumer Financial Protection Bureau on this process and the PMI specific disclosures for your loan.
  
  A snippet from the Consumer Financial Protection Bureau’s website on how to request PMI be cancelled.
  ************************************************************************************************************** The Private Mortgage Insurance Disclosure and Initial Escrow Disclosure from your closing documents. (Supporting documents have been mailed to you)
  
  Thank you for being a member of Arkansas Federal. Please do not hesitate to reach out if you have any further questions or concerns.

  Customer response

  07/10/2024

  
  Complaint: ********
  
  I am rejecting this response because:

  I have lost this battle.  It is wrong, but apparently legal.  Apparently I signed something in the mountain of papers on signing date that stated that although I was getting a loan for roughly 50% of the appraised value, I still had to pay PMI on the original loan value.  This is ludicrous.  If I had only had to pay $100 for the house which appraised for $210,000, I still would have had to pay PMI until the amount was down below $79. There is no way 'the investor' would ever have to make a claim, total waste of money.  I am beaten, I admit that.  I am beyond asking for compensation.  I would, however, like to request that on future contracts, AFCU be required to give full disclosure to their clients when they are obviously paying less than 80% of the home value.  "You will have to pay PMI based on loan amount, not value."  I think the comment "You should have addressed these concerns before you signed" was just blatantly bad business.  Who reads all the lines of those contracts?  I signed in good faith.  I would like for future potential victims to be made aware before hand with more than a line among literally thousands of lines in a contract.
  
  Sincerely,
  
  **** ****

• Initial Complaint

  06/03/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I have a CD maturing on 06/08/2024. I did receive the notice from AFCU, I called on 01/06/2024 and was told they can not take my instructions what I want done by phone till the date of maturity. Or I can fill out the form and mail it in. The other option was to go to the credit union and do the form there. Now my question is I bought the CD on line why can't I renew it on line. Only guessing I would say today 90% of the banking is done on line. Yes I could call or even go to the credit union, but dealing with **** ******* ****** *****, I can call or email any date prior to my CD maturing and give instructions what I want done with the CD.

   

  banking made easy

  

  Business response

  06/07/2024

  Thank you for the opportunity to allow Arkansas Federal to address your concerns regarding share certificate renewals.   These concerns were forwarded to the heads of our branch system.  A manager was able to reach out by phone to offer assistance, but by this time the certificate renewal instructions had been provided at a branch location. This said, you now have the direct contact information of our most experienced manager, who is always happy to help.    Please accept my apologies that the option that allows submitting a certificate renewal form using email and ******** was not provided when you originally contacted us.   Applicable departments are being coached to ensure they all know that the form can be processed via ********, and this should be offered as an option.  I checked in with our Digital Team and discovered they are conducting research to determine if there is a way that our online banking platform can accommodate this function in the future.  Thank you for bringing this issue to our attention and being a valued member of Arkansas Federal. 

• Initial Complaint

  05/14/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I have a loan with them and none of their portals would let me make a payment. I tried the app and the website on several different days. I co tasted them and sent a screenshot and they orivessed a payment and said when it went through they would waive the fee. In the meantime; It charged another late fee so I emailed them and they quit responding and bow will onmy waive one fee. I need them both waived an MD ill attach the screen record

  

  Business response

  05/30/2024

  Thank you for the opportunity to allow Arkansas Federal to address your concerns regarding your loan payments and online banking.   First, in regard to the late fees, two fees have been reversed on the loan as a courtesy.  
  The Digital Team was contacted so more could be learned about the issues you have been experiencing with making payments online.  Here is what I learned:
  MFA (Multifactor Authentication):  Each time an external transfer is scheduled an MFA is required. The MFA report was reviewed for January to May 29th.   There is no record of an MFA requested in February for scheduling a payment.
  Security Audit: There are multiple logins in February, but no attempts shown for making a payment.
  Engagement: There is a history of a chat with the Call Center on March 1, and you were advised to pick a different payment date. (Payments may not be scheduled for the same day after the cut-off time) This was not done.
  The external account that payments are being made from does not list you as an owner.
  The grace period before a late charge on this type of loan is seven days.  As the payment for this loan is being made from another person’s account, I recommend that you have them transfer the funds to your checking account and you can transfer the funds to the loan from there.  If this is done, the payment will not require MFA. 
  If you experience any further issues, please contact Arkansas Federal for assistance. Thank you

• Initial Complaint

  12/04/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  Had a secured credit card and debit that got locked so many times I got sick of it. Then they would call at times like 8:45 sunday morning to unlock. Got fed up and tried to pay off the secured debit but every time they would mess it up. I finally got aick of it and demanded it closed and email communication but calls continued. In the moddle of filing police reports in a wreck. And the calls should never be happening if they'd make their card work as well as literally everybody else

  

  Business response

  12/08/2023

  Arkansas Federal Credit Union staff is working on a reply to you for your NCUA submission and this will have more details.   What I have learned thus far is that the time that your debit card was not working was due to negative balance. The credit card was set up on auto payment and the account did not have sufficient funds on multiple occasions to make the transfer for the payment. This could prevent the credit card from being used.  The card loan was charged off in April 2022.  The reply with more details will be sent to you next week.  Thank you. 

  

  Business response

  12/12/2023

  Using the incorrect PIN multiple times can create an issue with using the card as it could flag that the card has been stolen.   Bank statements, for the time range from this discussion, have been mailed to the address on file and show the activity on the accounts. While you no longer have active accounts, Arkansas Federal staff is happy to assist you with any questions you may have regarding past activity.  Thank you. 

  Customer response

  12/12/2023

  
  Complaint: ********
  
  I am rejecting this response because: your cards lock anyway and your google reviews prove it. I started complaining when I saw everybody else was having same issues. And it still doesn't explain why I couldn't get my credit card paid. You stated at one point about my autopay but you can't autopay that charge card, which started the problem. I demanded in writing but you kept calling. You're writing now and will confinue to until you take this crap off. I'm just getting started good. I got a new treatment at VA that hekps me chill and focus while dealing with ineptitude such as yours. Imma drive ya nuts cause you drove me nuts
  
  Sincerely,
  
  ****** ********

• Initial Complaint

  06/08/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I initially had a $99 charge to my checking account by a business that wasn't supposed to happen. It took them a while to refund it In the meantime I don't keep much money in this account and several automatic payments came through. AFCU kept charging me $35 every time an electronic payment came though since it was in the negative. It became over $500 in the negative and then they locked my main checking account and held all my money hostage! I am disabled and wasn't even able to purchase my medication I needed. I hope nothing happens to me because of this. They took off 3 of the $35 charges and said that was all they were allowed to credit. My funds are STILL locked from the other account although the account is under $500 in the negative. I want all of the $35 charges credited off of the account. This should be illegal, and very well may be. The over drawn account is ***********.

  

  Business response

  07/05/2023

  I was unable to research this specific event adequately due to insufficient information provided.   I reviewed the named account and found no disputes filed for unauthorized activity.  The fees charged, based on the information I have, are in accordance with the account agreements, disclosures and fee schedule.   I am available to discuss the situation in more detail and have flagged the account with my name and contact information.  Thank you. 
  

• Initial Complaint

  11/21/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  I went to the the Arkansas Federal Credit Union location number 2570 and spoke to teller number 258376. I gave a $700 cash deposit to go into my savings account. The teller counted twice and came up with $720. Explained it should be $700, he counted againa and agreed. shortly after I left I looked at the reciept and my online app and saw the deposit was only #520. I went back into the branch and spoke to Hunter who is a mid level manager. He spoke to the teller who again agreed that he counted $700. Hunter advised he would audit the machine and look at the cameras. He called back and said nothing was wrong according to what he saw. He has given excuses. I have tried to call corporate three times and have been transferred back to the branch I went to. I explained on the third call I do not want to speak to them, I want to escalate through the corporate office and they have refused to do so. My ideal resolution would be to get the remainder of my $700 deposit.

  

  Business response

  12/07/2022

  This matter was investigated and it was found that the teller miscommunicated the amount in the initial verification of cash presented for deposit.  Due to this miscommunication prior to processing the deposit,  the difference in amounts was credited to the affected account on November 22, 2022.   This should not have happened and we offer our deepest apologies.  

  Customer response

  12/07/2022

  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. they have made things right. report number ********
  
  Sincerely,
  
  **** ********

• Initial Complaint

  09/07/2021

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  my paycheck is usually direct deposited, but this pay period there was an issue and my employer issued paper checks. I did a mobile deposit, now they have a hold on my deposit, holding funds for 7 days, auto drafts and payments are being returned and I am also being charged overdraft fees. I have been with this bank for over 3 years, my checks have been from the same employer, and they use a local bank as well.

  

  Business response

  10/12/2021

  Business Response /* (1000, 5, 2021/09/17) */ We regret that we were not able to resolve this issue for Ms. ****** sooner. Prior to the mobile deposit, Ms. ******'s available balance was negative. Our team placed a hold on the check based on her negative available balance among other factors. While Ms. ****** expected these funds to be at least partially available, check holds rules that apply to deposits made in our branch do not apply to mobile deposits. When Ms. ****** reached out to us on the Labor Day weekend we were not immediately available to assist her. Our team promptly responded on the following business day. We were able to remove the hold and refunded the fees she incurred. We apologize for the inconvenience. Consumer Response /* (3000, 7, 2021/09/21) */ (The consumer indicated he/she DID NOT accept the response from the business.) I was in overdraft because the mobile deposit was being held. I was told the reason was because I had never done a mobile deposit with a check from this company, which direct deposits my pay for the last 5 years. My being in overdraft is a direct result of the hold on my paycheck that was deposited. They did refund the overdraft fees, but I am still stuck paying late fees and returned payment fees from bills that auto draft. Business Response /* (4000, 11, 2021/10/04) */ We would be glad to refund her late charge if she will provide us a copy of the bill. Our manager already reached out to her. We look forward to hearing back from her.

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