Complaints

• Initial Complaint

  10/22/2024

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  Received a letter in the mail stating I had 10 days to close out a *** Checked the new rate before closing out and their renewal was for less than advertised on the website. Called to make sure I had the 10 days to close and was directed to send a secure message with all information. After sending all info they reply saying I only had 7 days to cancel and they want penalize me with $437.40 to close the ***

  

  Business response

  11/04/2024

  Thank you for the opportunity to respond to the above referenced complaint submitted to Newtek Bank, ************ Although the Bank has spoken with Mr. ******* (complainantand successfully rectified any misinterpretation, the bank would like to formally submit a response to the complaint. In the complaint, Mr. ******* states that he received a letter stating he had 10 days to close out his Certificate of Deposit account. He states that he checked the new rate before closing the account and claims the renewal rate was less than that advertised on the Banks website. Additionally, Mr. ******* stated that upon contacting the bank a fee was quoted to close the account.
  Upon investigating the Bank notes the following, Mr.Dorfmans account matured on October 12, 2024, and a 30-day renewal notice was sent to him on September 12, 2024. The rate was not included in the notice as it was not yet determined as offered rates vary. Upon expiration, the account was automatically rolled over with the new rate offered by the bank for all accounts with the same terms. However, the complainant contacted the bank on October 21st,claiming his rate did not match the one advertised and was advised rated were changed on October 19th, 2024, which was after his account maturity and renewal.
  The Bank was able to speak to the complainant to review and explain the timeline and events occurred and was offered to honor the new rate on his account which satisfied Mr. ********
  Sincerely,

  Customer response

  11/08/2024

   
  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 adjusted the rate to reflect the advertised one and I opened an additional account.
  
  Sincerely,
  
  ***** *******

• Initial Complaint

  05/04/2024

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I have gotten a loan with this lender. During the process of getting the loan they kept changing things adding things without informing me. I went along with it not happy about it. Was assured that I would have access to the loan portal to be able to make extra payments and be able to keep track of the loan from the beginning of the whole process. Now that the loan has be closed I have been informed that I will not have access to any of that and that my payments will come out by direct withdrawal from my bank account. I have no problem with paying my monthly payment like that but I should have access to beable to pay extra and keep track of everything to do with this loan and I have been denied that. Even after being assured I would have acces by multiple people from this agency.

  

  Business response

  05/14/2024

  RE: BBB Complaint ID # ********
  
  Dear Better Business Bureau,
  Thank you for the opportunity to respond to the above referenced complaint submitted to Newtek Bank, N.A. (Bank). In the complaint, borrower claims that during the process of obtaining loan things were changed without informing the borrower.Additionally, claimed that assurances were provided to access the loan portal,with the ability to make additional payments, and keep track of the loan. After loan closure, ******** claims he was informed access would not be granted, and payments would be withdrawn from his bank account. For resolution, the complainant requests access with the ability to pay and track the loan.
  Upon receipt of the complaint, the Bank investigated further into the matter. On March 21, 2024, borrower accepted the terms of the Approval Letter reflecting loan payments would be made by automatic debt from an account maintained by the borrower. Upon receiving the signed approval letter, the closer agent completed the welcome call with the borrower and during that call, it was discussed that payments would be made via automatic payments. In addition, at closing, the borrower also executed the *** Authorization, authorizing Newtek to debit their checking account for their monthly payments.
  It should be noted that at no time during the communication with the borrower was it discussed they would be able to access their loan via Newtek Advantage, as our core loan system does not interface with Newtek Advantage. The borrower can, however,access their monthly statements, any correspondence sent (delinquent notices,financial requests, re-amortization notices, etc.), can be retrieved from their loan portal. Please note, that although Newtek Bank issues the loan, the loan is serviced by a separate entity in a servicer capacity. Therefore, any loan information such as current balance, next payment due, etc., can only be retrieved by contacting their assigned servicer.  If the borrower needs to make any additional payments, they need to contact their servicer assigned to their loan and the servicer will assist/proceed with their request.
  
  Sincerely,
  Compliance ****************************************** N.A.

• Initial Complaint

  03/25/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  This lender unfairly denied my loan application, claiming theres something wrong with either my business or personal credit score. My personal credit score is around 700. The lender wasnt clear on the requirements and doesnt take everything into account as they should do by law.

  

  Business response

  04/09/2024

  RE: BBB Complaint ID *******
  Dear Better Business Bureau,
  Thank you for the opportunity to respond to the above referenced complaint submitted to Newtek Bank, N.A. (Bank). In the complaint,the complainant claims the loan application was unfairly denied, references the personal credit score, states the bank was not clear on the loan requirements and did not take everything into account as we should by law. The bank takes claims of unfair treatment very seriously and has policies and procedures in place to ensure no applicant is treated differently.
  Upon receipt of the complaint, the bank investigated further into the matter. As stated in the adverse action notice provided to the applicant, both the business and individual credit of each owner or principal of the business was reviewed. The main factor resulting in the denial of this application was related to the business credit history. Upon review, our credit team discovered there was a recent chapter 7 bankruptcy case that was closed in 2021. The second factor resulted in very limited liquidity reported on the personal financial statements. Ultimately, the loan decision was based on the aforementioned factors, and not on the complainants personal credit score.
  
  Sincerely,
  Compliance ****************************************** N.A.

• Initial Complaint

  12/08/2023

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I withdrew $213,698.33 from my bank account between 10/17/23 and 10/19/23 with the intent of closing the account after the interest was posted at the end of the month. The interest for having the funds in the account for more than half the month is over $500. The bank will not pay me any interest because I didn't have a balance of at least one ***** at the end of the month. They claim they don't have to pay me any interest for the month due to fine print at the back of a long account agreement regarding the one ***** minimum. This is an extreme lack of transparency and a shady attempt to steal my money to unjustly enrich themselves at my expense. I have contacted them twice 11/2, 11/3 & 11/22 via messages in their app and called 12/8, all with no luck in getting them to reverse their robbery. I request they pay the interest owed based on the daily balance as is their policy.

  

  Business response

  12/28/2023

  The customer maintained a ****************** Account at the Bank.  After a final withdrawal on October 19, 2023, the customer's balance was $0.00. The account balance remained at zero for the remainder of October 2023. The Bank's Deposit Agreement states that a minimum balance of $.01 must be maintained in the account each day to obtain the disclosed annual percentage yield.  As the balance was $0.00 at month end, no interest was paid. 

  As a one-time courtesy to the customer,management reviewed the complaint and credited the interest to their account on December 22, 2023.  

  Customer response

  12/30/2023

   
  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.
  
  Sincerely,
  
  *************************

• Initial Complaint

  11/29/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I kept money in the bank and it accrued a lot of interest. Midmonth I withdrew the deposit but kept the account open. The bank is now refusing to pay out the interest. The Bank's Deposit Account Agreement is clear that the only way to forfeit the interest is if I close the account. it is also clear that the account remains open without fees even if I withdraw all funds. In fact, I have transactions pending that the bank is processing. I want the Bank to pay all accrued interest.Also, I requested Statements from the bank but they refused to provide me with statements bearing the bank name or full account number. I believe that federal regulations require banks to provide these as I have made transactions this month.

  

  Business response

  12/28/2023

  The interest was credited to the customer's account on December 1st.  The customer subsequently transferred the credited interest out of the account.

  Customer response

  01/01/2024

   
  Complaint: 20931035
  
  I am rejecting this response because:

  
  It is true that the bank eventually did deposit some  interest into my account. However, They subsequently withdraw from my account. Only after I noticed and complained did they redeposit. Additionally, I have yet to receive an official bank statement from them. 

  Reading the complaints and my own experiences with Newtek have made me feel like i am dealing with some overseas scam. Cheating and stealing until official complaints are filed. Then redepositing and cheating and stealing again.  This is not a trustworthy bank.

  Sincerely,
  
  *********************

  

  Business response

  01/10/2024

  Dear Better Business Bureau,
  
  Thank you for giving us the opportunity to address the response received from the referenced customer.
  We make every effort to resolve customer concerns and made two attempts to contact our customer by phone to assist with this matter. We must work with our customer directly to address account related issues. Account statements are available electronically within the online banking portal.

  
  For further assistance, our **************** team is available at **************.

• Initial Complaint

  10/31/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Requested close of CD within 7 days.No response from bank.Did not return my money, instead rolled over to new CD.

  

  Business response

  11/01/2023

  The funds were wired to the customer on November ******.  A bank representative will contact the customer and follow up.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩