ComplaintsforKo'olau Federal Credit Union

• Initial Complaint

  04/14/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I financed my truck with Koolau Credit Union in late 2022. My insurance lapsed in December, but I got another insurance policy in January. I received a notice stating I needed to provide proof of insurance to the credit union. I brought proof of insurance to the bank, which they checked and verified. I continued to get notices that I needed to provide the bank with proof of insurance. Each time I received a notice, I went to the bank to check what else they needed from me to prove I had insurance. Several times I was told to ignore the letter because my insurance was current. The letters got increasingly threatening, stating fines would be incurred. Each time I received a letter, I would either call or go to the bank to ask what was going on. I would express concern about being fined, but each time, they would brush it off, telling me it was a mistake or to just ignore the letter, and that everything was fine since I was insured.On 13 Apr 2023, I received a notice that once again, I had failed to insure the truck. I went to the bank on 14 Apr 2023 and spoke with *************************, the Vice President of Branch Operations. Of course, this time, I wasn't told to just ignore the letter. I was told that now I have a fine of $1380 because my truck is not insured, which is not correct. The truck is insured, and it has been the whole time I've been receiving these threatening letters.It turns out, the credit union was looking up the old policy and not the new one, even after I provided them the current information on the new policy. As a result, they have added the $1380 fine to my loan. I am planning on refinancing with Navy Federal, who understandably will have to include that $1380 on my loan, but I would like reimbursement for those funds which should not have been charged to me in the first place if the staff at Koolau Credit Union had looked further into the situation and not told me to "ignore" the letters.

  

  Business response

  05/05/2023

  ************,

  I conducted further research with the company who tracks our insurance policies for vehicle loans. They have confirmed with me that the lapse period is from 12/02/22 - 01/30/23 which you were charged $1,380.00.  We have documentation that you had a Progressive Policy #XXXXX7907 which was cancelled on 12/02/22 and a Progressive Policy #XXXXX4148 which was effective 01/30/23.  Please provide me with a copy of a policy covering the vehicle for the period 12/02/22 - 01/30/23. Once confirmed with the insurance company we will issue a refund.

   

   

   

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