ComplaintsforHar-co Credit Union

• Initial Complaint

  02/09/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  I am following a complaint against my current bank. Back in December I was experiencing financial hardship. Just to give you an anecdote. I am 18 years old, I am currently putting myself through flight school. Unfortunately I had gotten an over draft of $312. About a weak later I went out to the abingdon branch to speak with someone by the name of Frank * about settling my debt. I offered to pay the current debt in cash and told me that was not possible, and that I would need to contact someone by the name of Melinda. After making several calls to Melinda I received no response. So my plan was to wait till I started my new job and I would settle my debt when my savings was at a sufficient amount. During this time I would keep my spending to the absolute necessity. I used some miscallenous cash from my rainy day fund to cover. After starting my new job I received my first pay check on the 2nd of febuary, in the amount of $281 dollars. I had an existing $105 dollars in my account prior to that because my mother decided to give me a small loan. My intentions were to get a few more paychecks and then pay the debt and reopen my checking. Febuary 3rd I got an online banking notification that $312 dollars was with drawn from my account. With that information I went in to see about opening my checking. I was told by someone with the name of darlene ( whom was very helpful and understanding) that I would not be allowed to reopen my checking for one year, and that I was reported to chex systems. This leads me to here, I am filing this complaint because I was never told about this policy. It is essential I have access to my money as it is my personal asset. I expect Harco to reopen my checking.

  Business response

  02/28/2023

  The complainant, ********* ********, failed to respond to all 3 of our letters, the 1st sent November 23, 2022 with a balance of -$201.59, the 2nd sent December 5, 2022 with a balance of -$318.36 and the 3rd sent December 13, 2022 with a balance of -$319.35. He also did not respond to our voicemail of December 15, 2022,  at which time we referred his account to a collection agency. Though a deposits have been made to the savings account and credited to the negative balance, based on the poor handling of this account we will not reopen the checking account as requested.

  Customer response

  03/01/2023

  
  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

  02/12/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I filed for banckruptcy approximately 2 to 3 years ago. Harco credit union has made illegal attempts to collect on a credit card debt that was written off during bankruptcy. They refused to close my account or allow me to withdraw the mandatory minimum of $5 from my savings account untill I repaid the debt in full. I demanded they return my $5 under threat of contacting my attorney. They released my $5 however, now they are issuing $97 in fees for account abuse. I wish to have the fees removed and my account closed as requested. I wish for no further harassment from this company.. I have followed all laws.. Under bankruptcy laws they are not allowed to make any attempt to collect this debt from me, nor can they force me to have an account open. Previous to this they withheld my stimulus check money that was automatically sent to that account, however after threat of legal action they released those funds.

  Business response

  03/02/2022

  Business Response /* (1000, 5, 2022/02/18) */ Contact Name and Title: John P S., Jr, CCOO Contact Phone: ************ Contact Email: *****@harcocu.org BBB of Greater Maryland Attention: Jerica J. Baltimore.**@bbb-email.org 502 Sharp Street, Suite 1200 Baltimore, MD 21201 February 17, 2022 Re: Complaint # 36186688 - complainant Dear Ms. Johnson, thank you for reaching out to Har-Co Credit Union to make us aware of complainant's concerns. First, let me say that we are sorry for the financial difficulties complainant experienced that lead to his bankruptcy filing. I have reviewed the relevant information available to us. I see no evidence that Har-Co made illegal attempts to collect on the credit card debt that was written off by the bankruptcy filing. The last Visa-related collection letter sent out by Har-Co was dated 11/1/2019; the last Visa-related contact was a voicemail left on 11/5/2019; and the last Visa-related phone call made to complainant was on 11/21/19 - there was no answer. It is highly unlikely that Har-Co would have received notice of complainant's bankruptcy prior to that last call, as the bankruptcy date was 11/18/2019. On 9/24/19, complainant's Checking Account was closed. At the time, it had a balance of -97.67 caused by a series of overdrafts caused inside the 90-day window prior to his Bankruptcy filing; as such, according to complainant's own attorney, those funds remained owing, were not cancelled by the bankruptcy and were duly reported on ChexSystems as owing. As per Har-Co's protocols in effect at the time, following receipt of notice of a chapter 7 filing when there as unsecured debt outstanding, the balance on the Visa was written off on 1/31/2020. The account was not forwarded to any collection agency or attorney to try and recoup the loss. The bankruptcy and loss were noted on the bank's systems used by our loan and deposit personnel. Two Credit Union errors were made on or about this time: 1) The written off debt was communicated to our credit bureaus (Equifax and Trans Union); but instead of being reported as "Written Off, $0 Balance", it was reported as, "Written Off, $990.46", which indicated that a balance was still owed. Har-Co has communicated with both credit bureaus to correct that error. 2) The Savings account should also have been closed out on 11/31/2019 when the Visa debt was written off, and it was not. I do not know why. On 4/13/2020, a Stimulus check for $1,200 was deposited into complainant's savings account. No system hold was placed on that deposit. On 4/16/2020, complainant came to the branch to withdraw the Stimulus funds. While the teller (who is no longer with Har-Co) was processing the withdrawal request, the system would have given her warning prompts, informing her that the Member had filed for bankruptcy (type unidentified) and that the Member was ineligible for member services. Had she proceeded to the next screen, she would have seen that Har-Co incurred a loss related to the written-off Visa balance. The Teller contacted Har-Co's Loss Mitigation department for guidance and Loss Mitigation, in turn, contacted Har-Co's Chief Credit & Operating Officer, John Shroads, Jr., all of which was entirely appropriate. Mr. S. reviewed the facts and determined that: A) complainant's bankruptcy had been a Chapter 7, so the debt had been discharged; and B) The funds deposited on the 13th were Stimulus funds and were not eligible for offset against written-off debt, even if there had not been a Chapter 7 filing. On the basis of those two facts, Mr. S. informed the teller to give complainant his money. complainant's legal threats played no part in Har-Co's decision-making process. Because Har-Co failed to close out the Savings account on 1/31/2020 as it should have done and as a good-faith gesture, Har-Co will wipe out the $97.67 showing as owing on ChexSystems, even though that debt was not wiped out by the Bankruptcy. complainant has requested that Har-Co reinstate his member privileges by allowing him to re-open deposit accounts with us. Har-Co is denying that request because its By-laws bar members who have caused the credit union a loss.

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