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ComplaintsforLeominster Credit Union
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Complaint Details
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Initial Complaint
04/20/2023
- Complaint Type:
- Billing Issues
- Status:
- Answered
I paid extra payments on my loan each month all the while thinking i was making principal payments after making my refular payment for the month but then they said no I was not, I was prepaying the regular payments up through Jan of 2023. So then I stopped and just made principal payments from June 2022 to January 2023 then resumed in January making regular payments. However now whenever I make a regular payment none of the regular payments are going to principal. It is all going to interest now. This bank is extorting me for interest and I would like you to be aware of their corrupt practices and would like you to vet their poor explanation of why no portion of my regular payments are being applied to the interest when I have not fallen behind in regular payments.Business response
05/09/2023
The payment history for the loan in question has been reviewed and verified by the Credit Union and communicated to the member. The loan being questioned is a simple interest loan. This means that when an additional loan payment is made it is applied towards any unpaid interest due at the time of the payment and then to the principal balance. Upon review, it was determined that all the payments made to date have been correctly applied to the loan.Initial Complaint
04/13/2022
- Complaint Type:
- Sales and Advertising Issues
- Status:
- Answered
Leominster Credit Union charged me without my consent or knowledge for optional insurance that is added to my auto loan balance every month. When I called them to ask for it to be cancelled and a refund they refused and even though there is no documentation I agreed to pay for this. The Branch manager said i was probably a Verbal agreement. I am 100% sure it was NOT.Business response
05/04/2022
Business Response /* (1000, 5, 2022/04/14) */ Leominster Credit Union offers a variety of optional insurance products that can be purchased during the process of obtaining a loan with the Credit Union. In all cases, the decision to purchase one of these products is evidenced by a written agreement which is signed by the consumer, and Mr. D****'s case is no exception. Nevertheless, on April 13, 2022, Leominster Credit Union's Senior Vice President of Retail Banking contacted Mr. D**** and was able to reach a mutually agreeable resolution regarding this complaint. Consumer Response /* (3000, 8, 2022/04/21) */ (The consumer indicated he/she DID NOT accept the response from the business.) I am satisfied with the resolving of my issue by Leominster Credit Union. I am not however satisfied that they continue to make the claim that I was aware at any point that I was paying for an optional insurance. They were deceptive in the way they activated this insurance unknowingly to me as well as how the charges were applied. Business Response /* (4000, 10, 2022/04/25) */ On April 4th, 2022, the contractual agreement signed by Mr. D**** which evidences his agreement to purchase the optional insurance product was mailed to him.
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Customer Complaints Summary
2 total complaints in the last 3 years.
0 complaints closed in the last 12 months.