ComplaintsforLiberty Federal Credit Union

• Initial Complaint

  07/01/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I am filing a complaint against Liberty Federal Credit Union regarding an unwarranted charge for forced-place insurance on my automobile loan. Despite providing the declarations page and the entirety of my insurance policy from my insurance company multiple times, specifically on May 31st and June 20th, Liberty Federal Credit Union has charged $255 to my auto loan for insurance that should not have been applied. This has caused undue financial stress, unnecessary time and energy trying to talk with a call center representative, and frustration as I have fulfilled all necessary requirements to prove my vehicle is adequately insured. I request the immediate removal of this charge and a thorough review of their practices to prevent such issues in the future. The third party that they are using for this practice is not equipped to be handling such issues as they have yet to even return a phone call or email and have only been contacting me via mail which takes 7+ days for a response.

  

  Business response

  07/02/2024

  After receipt of the policy that included LFCU's lien, the cost of the unneeded insurance coverage was refunded to the member's loan on July 1, 2024. Please let me know if there are further questions or concerns.  Thank you.  

   

  Customer response

  07/09/2024

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

• Initial Complaint

  06/25/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  March 6th $255 charged for lender placed insurance with proof of insurance given. March 27th $85 charged for lender placed insurance with proof given again June 24th $170 charged again for lender placed insurance. Called multiple times and emailed proof with no resolution. I want refunded for these charges as well as loan capitalization insurance $63.35 Jan 31st, feb 29 63.43, March 31 $63.73, April 30th $63.29, May 31 $62.50. I requested this be removed January 28th and again June 4th via email. I want these all refunded as well as any interest incurred on the loan from these charges

  

  Business response

  07/08/2024

  LFCU worked with the member to obtain the proof of insurance needed and all lender placed insurance was refunded on July 5.  In addition, LFCU is working with the member to obtain the signatures needed to remove the payment protection placed on the loan.  Please contact me with any further questions or concerns.  Thank you.  

• Initial Complaint

  01/03/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Receiving a new class action waiver agreement from them today only tells me whats in their forecast: I have 6 accounts with LFCU and three of those are business accounts. We have had a number of issue with this company. With a promise of 3.45% intrest in checking account we have not had this come through on our largest account. 5 months in when we realized we where not receiving the dividends they state the account was not set up correctly. Well who;s fault was that? We are not it your system setting up our account. You all are! This took over a month and multiple calls to get this fixed. In the process they took it upon themself to change the Tax ID structure of one of my other business accounts. I'm sure we have some legal ramifications here. This also locked me out of all my accounts for over a week. For over a week I could not check, manage, transfer or touch my funds. This also led to an account having over drafter fees. I have attempted to have this escalated and it's gone no where. I have lost the ability to view my Rewards statues online to make sure we meet the 3.45% rewards monthly requirements for each month on the accounts the rewards are suppose to be on. At the end of the day this is starting to seem like a gimmick. We will promise you 3.45% intrest but we will set it up wrong and also find a million other ways to dodge from having to pay this to you. I will need the 3.45% intrest rate back paid from the time I brought this to your attention and I will need any and all accounts impacted to be fixed and appropriately compensated for the 3.45% rewards that were blocked/ withheld/ and or wrongfully set up by your institution. I look forward to and immediate resolution going above and beyond to make up for the mistrust your financial institution has brought on itself.

  

  Business response

  01/17/2024

  I spoke with the member yesterday and sent a follow up email per his request.  I am now waiting on his return call to discuss his concerns.  

  Customer response

  01/29/2024

  the bank contacted me and stated they would be fixing the issues. I am stll waiting on the issue to be fixed. please do not close this case. 

  

  Business response

  02/06/2024

  Between 2/1/24 and 2/2/24, LFCU corresponded with the consumer and with his authorization made agreed upon changes to the structure of his online banking account and checking account.  

• Initial Complaint

  12/18/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  The account in question was established in October of 2021 and ALL payments were made on time. Due to extensive medical bills … On 6/3/2023 I applied for and was approved for a “Skip-a-payment”. On June 6th, $500 was taken from my checking account anyway. This caused many overdraft fees. On 7/27/2023, I was again approved for a “Skip - a - payment” (August 5th payment). Instead, ON 7/31/23 THE LOAN WAS PAID OFF IN ITS ENTIRETY! On 8/7/2023, Liberty Federal Credit Union emailed me that the August payment had been initiated ON A PAID-OFF / CLOSED ACCOUNT!! I immediately called and was assured that the payment would just bounce right back to my bank because it was a closed account and, just to be sure, We closed the $5 savings account I was forced to open to secure the loan (See attached refund check). AGAIN they took $500 out of my checking account and it did not bounce back to my bank as they assured me it would, instead, it was deposited into THE ACCOUNT I CLOSED on 8/7! I immediately went to my bank to contest the withdrawal, but nothing happened for days, so I called Liberty back and they sent me a check for the $500 on 8/11 (See attached) and again assured me that all of my accounts were closed. On 8/14, my bank dispute was resolved and the $500 was returned to my account AGAIN, FROM CLOSED ACCOUNTS!! I should not be held accountable for the continued screw-ups of Liberty Federal Credit Union and its questionable accounting practices. Because LFCU believes I owe them $500, this account has been sold to ****** *** ********** (**** **** ****** ******* ******* ******* *****) and both companies have reported this to the credit bureau. Now ****** *** ********** are asking me for $640 with collection fees.

  

  Business response

  01/04/2024

  The consumer requested to skip a payment and it was granted.  Subsequently, the member never stopped the reoccurring payment she had set up; therefore, the payment was applied to the member’s loan.  LFCU apologizes for any misunderstanding regarding this matter.
  On July 31, 2023, the loan was paid off and on August 7, 2023, the loan and share account were closed.  On August 10, 2023, the member sent another payment to LFCU from their account at another financial institution, the LFCU savings account was reopened, and the payment funds were placed into the member’s savings account.  On August 11, 2023, the member called in and requested the account be closed out again and was sent a cashier’s check for the balance in the savings account which contained the loan payment sent after the payoff.  On August 15, 2023, LFCU was notified that the consumer contested the payment at the other financial institution where the funds were withdrawn.  As a result, the consumer received the funds back into her checking account at the other financial institution and LFCU was charged the amount of the payment.  Therefore, LFCU deducted (reversed) the funds from the member’s savings account leaving it negative and requested the duplicate refund of the payment be returned to LFCU to recoup its loss.  

  Customer response

  01/05/2024

  
  Complaint: ********
  
  I am rejecting this response because:
  
  The information provided by Liberty Federal Credit Union is not accurate. I did not submit a payment on August 10 after my account was closed, why would I? I have the email to prove that the payment was initiated on their end, on an already closed account. As soon as I received that email, I contacted them to alert them to the fact the account was closed. I was assured repeatedly that the amount would just bounce right back to my bank, because I did not have any accounts opened with them anymore. This did not happen, and the full amount was withdrawn from my checking account.  I immediately went to my bank and explained the situation, and they said they would reach out to Liberty to get my funds back.  When that did not happen in a timely manner, I contacted them myself, and was mailed a check, refunding me the full amount. That should’ve been the end of it. But, later, my bank got a refund electronically, which never should’ve happened because again, my accounts with Liberty Federal Credit Union were all closed.  I should not be held accountable for their questionable business practices and their inability to track their own accounts. I want this matter settled. I want my accounts closed, AGAIN, and I want this removed from my credit report. Not only the Liberty Federal Credit Union account, but the account from ****** *** **********, the company it was sent to for collections.

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

  

  Business response

  01/09/2024

  On August 7, 2023, LFCU received and processed the check paying off your loan and effective dated the payoff for you to July 31, 2023.  Your loan payment was also set up to process on August 7; therefore, LFCU was unable to stop the payment when you called.  Review of the conversation on August 7 indicates you told the credit union that the payment would bounce.  The representative let you know that the payment was already in process when the payoff was received and guided you through your mobile application to stop the recurring monthly payments you had set up.  In addition, she let you know that if the payment processed, it would be posted to your savings account since the loan was paid off.  When you disputed the checking account transaction with your other financial institution, they debited LFCU and provided credit to you.  Upon your request, your other financial institution processed the transaction that essentially refunded you a second time.  I apologize for any confusion.  

  Customer response

  01/09/2024

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

  Again, your information is inaccurate / incomplete.  What you are failing to acknowledge is that I had already been approved for a "Skip-a-payment" for August.  NOT ONLY WAS THE LOAN PAID IN FULL, BUT THE TRANSACTION SHOULD HAVE NEVER EVEN BEEN INITIATED!! 

  Also, I'm. not sure if your representative was trying to cover her own butt, but SHE assured ME that the payment would just bounce back to my bank because I had no open accounts with you anymore.  

  I have reached out to the Indiana Attorney general regarding this matter also and the case has been forwarded to The Consumer Financial Protection Bureau in Washington D.C. for review. 

  Again, please get this account back from ****** *** **********, where it never should have been sent in the first place, and you both need to remove the negative marks from my credit report.  If this is not handled to my satisfaction, I will be forced to contact a banking attorney.

  Sincerely,

  
  *** ********

  

  Business response

  01/10/2024

  I apologize for the continued confusion and would appreciate a phone call back from you in order to resolve the matter.  The documentation you provided along with credit union records indicate you received credit for the August payment twice.  Once in your checking account on August 14 at another financial institution and again in a check from the credit union that you deposited into an account at that same financial institution on September 2, 2023.  Please return the funds.  Once received, LFCU can notify ****** of the settlement and satisfaction of the amount owed.  Please contact me to discuss.  Thank you.  ***** ****** ***** ********* extension ****

  Customer response

  01/19/2024

  
  Complaint: ********
  
  I am rejecting this response, but I will return the $500 just to be finished dealing with you!  This, in no way means I am happy with how this was handled! And you can bet if I’m contacted by the Indiana Attorney General, I will cooperate with them 100% so that you cannot put another customer through what I’ve been through with your company! Please email me a link where I can send money, or send me some sort of invoice via snail mail. You should be ashamed of yourselves…
  
  *** ********

• Initial Complaint

  12/12/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I have been charged over draft fees for bills and then returned but they will honor a 5.00 Apple Pay charge that I can’t even find out what’s for plus the 27.00 dollar fee. So I would like my fees back and them to stop honoring stupid stuff….

  

  Business response

  12/14/2023

  As a courtesy to this member, LFCU refunded the fee to her checking account.  Please contact me with any further questions or concerns.  Thank you.  

• Initial Complaint

  11/09/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I signed a retail installment sale contract with ******* & *****, Inc and Evansville Teachers Federal credit union (Liberty Federal credit union took over) 09/10/15.I began researching consumer law, TILA, FCRA,TFRA,IBOAA ect. I sent tender of payment to satisfy the agreement with LFCU in May 2023. A month later I received a text message that they are denying my tender of payment (not returned) and if they didn’t receive a payment by the end of that business day they would repossess my automobile.(Securities Fraud) I have contacted them in writing (certified mail) several times which were ignored. I have sent a notice to the cfo (***** *****) to make him aware of the violations and to resolve the situation which was also ignored. They have further escalated this with committing identity theft. I have been contacted by acquaintances that an “Agent *****” (hired by LFCU) has called them without my consent. I would appreciate your assistance in this matter.

  

  Business response

  12/01/2023

  In March 2023 the member submitted a check to pay off her loan.  The check was identified as fraudulent, and the payment reversed.  Since then, the member has accused the credit union of not honoring/applying her payment, not releasing the lien on her vehicle, and not returning the vehicle’s title.  The credit union is unable to do so until it receives valid payment of the remaining loan balance.  Further, the member continues to avoid communication from the credit union and to surrender the vehicle so that it can be sold to pay off the remaining loan balance.  

• Initial Complaint

  09/29/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  A check dated 08/18/23, in the amount of $5,000 was deposited at a Chase Bank location. Liberty Federal Credit Union cleared the check around 10 p.m. on 09/12/23. A text on the transaction was sent to me until 3:46 p.m. on Sept. 13, 2023. The bank closes at 5:00 p.m. so I contacted the bank on 09/14/23. During the time before I called, I and my husband, repeatedly tried to view the check, which kept showing "Image not available at this time. Please try again later." When I contacted the credit union's customer service, ****** ******* was unable to view the check as well and had to have an IT person release the image. Once the image was forwarded, I immediately noticed that the check was missing my authentic signature and the following Liberty Federal Credit Union instituted fraud-deterrent markers: - the full account number in the middle of the check, - the emblem to the left of the "Pay to the order of", - the security statement to the left of the emblem, - correct placement of the LFCU logo, and - our phone number. Ms. ******* contacted ******* ***** about the fraudulent check. Verbally, Ms. ******* conveyed that Ms. ***** stated that since I had not notified them of the error in the 24-hour period from 10 p.m. on Tuesday to 10 p.m. on Wednesday, I could not dispute the withdrawal. I questioned how could I dispute and check if the credit union were closed, how would I know about the transaction if the check cleared after hours on Tuesday and I was not notified until 3:46 p.m. the following day, and how could LFCU honor the check that was missing their bank instituted deterrents? I pointed out that I nor Ms. ******* could view the check without IT releasing the image. A warranty affidavit was emailed to me on 09/14/23, to start the process of obtaining the stolen funds. The signed and notarized document was faxed on 09/18/23, to ************. We are missing the $5,000 and are ineligible to receive the monthly earned interest rate.

  

  Business response

  09/29/2023

  LFCU apologizes for the delay. Your account was credited today, and the deposit was effective dated to the date of the withdrawal to ensure the accuracy of your dividends.  Please let me know if you have any further questions or concerns.  Thank you.    

  Customer response

  10/02/2023

  
  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

  07/21/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I got treated unfair and discriminated. I never had a check bounce and my account was negative never negative but I think they actually froze my account for depositing my own check from a different bank account into this account and now I can't even deposit any check or cash into the ATM. I dont see how its illegal to deposit my own check from different bank into this bank account

  

  Business response

  07/31/2023

  LFCU discussed the checking account activity and restrictions with the member.  The matter is considered resolved.  The member can communicate any further questions or concerns to me.  Thank you.

  Customer response

  07/31/2023

   
  Complaint: ********
  
  I am rejecting this response because:my account is still frozen and cant deposit cash at atm
  
  Sincerely,
  
  ***** *****

  

  Business response

  08/01/2023

  The member's accounts were only frozen temporarily and are no longer frozen.  For the reasons explained to him, LFCU is unable to grant him ATM access. The member is welcome to communicate any further questions or concerns to me.  Thank you.

• Initial Complaint

  04/28/2023

  Complaint Type:

  Product Issues

  Status:

  Resolved

  More info

  In February 2023 I got a letter stating that Liberty was going to put forced placed insurance on my car. I HAVE insurance and on February 25th, I uploaded my proof of insurance to the site they told me ti go (iamcovered). On April, 24th, I got a letter stating they were starting the forced placed insurance. I immediately called them to ask what was going on. First I was told that it would take 5 business days for them to process emails. When I told the representative that I had supplied proof back on Feb 25, I was told that there were "no notes" on my account. This is unacceptable, fraud, and a blatant cash grab by this company. I am demanding them to remove forced placed insurance as I supplied proof - along with the last 4 numbers of my account AND their full ID number that they supplied to me on their letter. I am currently shopping for a new lender as I no longer wish to do business with a company who commits fraud.

  

  Business response

  04/28/2023

  LFCU regrets the miscommunication.  The cost of the forced placed insurance charged to your account was refunded to your loan today.  I apologize for the trouble and delay.  

  Customer response

  05/01/2023

   
  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

  01/31/2023

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  Liberty Federal Credit Union is my primary bank, but they have recently been charging overdraft fees for payments that have not been taken out of my account. They recently charged 4 overdraft fees of $27 which CAUSED my account to go in the negative. Without those fees, I had $4.37 in the account. There was no need for any of the charges. My husband met with the bank, and they credit us back half the fees, which I am grateful for, but they shouldn't have ever charged us in the first place. They say it has to do with pending transactions, and I do understand that. However, it doesn't reflect in my online banking. If they are going to base overdraft fees on pending transactions, they need to be visible for customers to see upon login. However, they are not visible to us, only on the credit union's end. They still owe us $54. Can you please help?

  

  Business response

  02/17/2023

  LFCU refunded $54 to the member and will follow up with written correspondence to her next week.  If there are further questions or concerns, I can be reached at ************, extension **** or *******@libertyfcu.org.  Thank you.     

*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. ↩