Complaints

• Initial Complaint

  04/01/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I deposited a certified cashiers check via the mobile app on March 27 2022. It had my husbands name on it and he is not on my account. I spoke to **** from fraud dept after the mobile deposit was accepted and then they took back the 225 that was released from my check without notice. I was told I needed a notarized affidavit releasing the funds to me. So I did that and then they added yet another five days onto a hold for a certified cashiers check. This is beyond ridiculous. Five business days from the time the image was captured should be today the first of April. I just want my funds released.

  

  Business response

  04/08/2022

  Ms. **** deposited a check via Remote Deposit Capture (RDC)that was made payable to *************************** and ******* **** into her business account which is in the name of ******* *** **** ***.  Had Ms. **** looked to deposit this check in person her request would have been denied due to the facts that LMCU has no relationship with *************************** nor is he a Member of LMCU & secondly, we do not allow for personal checks to be deposited into business accounts.
  
  Since LMCU was not able to identify ***************************, standard procedures call for a (1) year hold to be placed on the check after releasing an initial amount of $225.00.  We advised Ms. **** that we could reduce the (1)year hold but would require an affidavit to be completed by Ms. **** and *****************.  Once the receipt of the affidavit was received the (1) year hold was reduced to 5 business days which is standard procedure. Then along with the reduced hold an additional $1,275.00 was released to Ms. **** &then on April 5th, 2022 all remaining funds were available as the hold had expired. 

• Initial Complaint

  04/01/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I purchased a 14 month CD and at the time they did not let me know that would be a $270 fine for early withdrawal nor did they tell me they would not notify me when the CD came due I was a week late and getting my CD and thats when they charge me $270 I believe they shouldve notified me At the time of purchase of these requirements

  

  Business response

  04/12/2022

  LMCU understands that ************** is upset with the early withdrawal fee associated to the funds in his Certificate of Deposit (CD) account held with LMCU. ************** opened a 14-month CD with LMCU on 10/13/2020 and was provided with a Certificate of Deposit which outlines the maturity date, renewal terms, and early withdrawal penalties (180 days of interest). This information is also addressed in our membership agreement in which ************** received upon opening his account with LMCU and the CD maturity date is documented on **************** monthly account statements. 

• Initial Complaint

  02/04/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I recently opened a business checking and savings account with Lake Michigan Credit Union where I do my personal banking. I am starting a new mortgage brokerage which I let the branch manager who opened my account know when completing the opening of the accounts. After having the account open for about 3 weeks I was contacted by the same branch manager asking me some questions about the functions of the business which I found odd. My new company is called ***** ******** ******** *** so even if I hadn't told the branch manager about the businesses function I believe it is pretty obvious. I let her know that the company is a mortgage brokerage and I will be utilizing 3rd party lenders in the wholesale market to underwrite and fund loans. I was informed today which is about 5 weeks since opening the account that the account would need to be closed due to compliance issues. I inquired further about what compliance issues were causing the account to need to be closed and she could not give me an answer. I also explained that this would be a huge burden to me to have to open a new business account due to both the fact that all of my vendors and accounting systems are setup from this account and because there are net worth requirements that need to be held in a business account to be in compliance as a mortgage brokerage in ********* So not only will it be a huge burden to have to open and re-setup all of my payments and accounting systems if I have to switch financial institutions, it will also be a risk to my company to be out of compliance. If Lake Michigan Credit Union does not want to do business with mortgage brokerages for whatever reason that is their choice, however it is egregious for them to allow a brokerage to open a business account and then close it a month later. I believe this is being done intentionally to harm competing mortgage lenders as they are well aware of the potential regulation issues and accounting issues this will cause.

  

  Business response

  02/08/2022

  LMCU policies and procedures include a secondary review of business account documentation. During this review of Mr. ********* account, the business purpose came into question in which it was determined that Mr. ******* was engaging in lending activities. Per internal policy, LMCU does not offer accounts to businesses that lend to others and if detected said accounts are subject to close. We do however understand the inconvenience caused to Mr. ******* by the opening of his business account, followed shortly thereafter by the notice that the account would be closed. As a result, the Vice President of Compliance contacted Mr. ******* to address his concerns and was able to provide a satisfactory resolution to those concerns. 

  

  Business response

  02/11/2022

  Again, it is regrettable that Mr. ********* account was opened in error and we sincerely apologize for the inconvenience this has caused. As a courtesy, we have allowed Mr. ********* account to remain open while he finalizes his business licensing and our VP of Compliance will be following up with Mr. ******* within the next (30) days to see how progress is going in regards to obtaining a new account. 

  Customer response

  02/15/2022

  
  Complaint: ********
  
  I am rejecting this response because:  There was no update on resolution.  Thanks again for allowing me to keep the account open temporarily but that and an apology are not sufficient recourse for the added burden this has caused me and my business.  
  
  Sincerely,
  
  ****** *******

• Initial Complaint

  01/15/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  On January 14, 2022, My initial visit to the Lake ******** Credit Union located at *** **** ******* ** ***** ****** * ******** was to deposit a check from the ******** Lottery for $5,000. I went to the drive through window and gave the last four digits of the account in husband's name ***** ******) to use for the deposit. After a long wait , the teller informed me that my check would have a five day hold without explanation. I then asked for assistance with my debit card because I haven't used it after forgetting my PIN number. I was referred to my online banking account to reset it myself. The next morning my husband called to ask why the five day hold on a state check, only to be referred to the branch who's manager made the judgement call. We have a huge problem with her unavailability after such a devastating blow to our excitement. I know branch can call to verify a check, but never bothered to offer an explanation or consider my husband's disability checks for the last four months being his only income and failed to acknowledge our desperation to access these funds. Now five business days will equate to a week from this Monday - presumably January 24th. Why would a credit union treat a customer of over fifteen years without any fraud problems this way? I suggest they review this "judgement call " and release our lottery win immediately! And consider the customer's loyalty. We have other options for our financial needs and plan to explore them after this resolution. Also the money was not deposited in requested account, they moved it from the requested account after I left to the other one. Only $225.00 was available of the 5k, I suppose this was matching the balance prior to the deposit . I get that , but why not tell me why it went into our other account after my requested account ending in ***** and the teller replied " you mean the one in which **** is primary? " **** is primary on both accounts the check was in my name- why wait on guaranteed funds!?

  

  Business response

  01/20/2022

  Lake ******** Credit Union's frontline staff are trained to follow Regulation CC when placing check holds. In this case, the staff considered the check described in the complaint to be unusual for the member and placed a temporary hold on the check. As a result of the complaint, the area manager contacted Ms. ****** to discuss her concerns with this process and to advise that the hold on the funds was released as the check was verified with the State of *********

  Customer response

  01/20/2022

  (The consumer indicated he/she DID NOT accept the response from the business.)
  I am glad that the manager from the address I cited erroneously had the decency to lift the hold. The actual location was the ***** *** ****** of which the manager called my husband **** to hold her stance regarding the hold and upset him more by offering him $200 of the 5k win. The statement of " unusual for this member" is appalling considering anyone can hit the lottery! What's unusual about that!? The truth is "anyone" can't always be treated fairly in this establishment! Kudos to the manager at *** **** st who wasn't afraid to override *** ***** *** and saved the day!

  

  Business response

  01/25/2022

  In this case, LMCU staff placed the hold in normal course of business due to the large dollar amount which is not a typical transaction for the member. Also as part of normal course of business, LMCU made $225 of said deposit immediately available per policy. Upon receiving the complaint, we were disappointed that Ms. ****** received unsatisfactory service from one of our branch locations and in response, an area branch manager made a phone call to the State of ******** and was able to verify the funds in which they then immediately released the hold on the funds. We apologize for any inconvenience this has caused and hope our actions to resolve this issue for Ms. ****** have been satisfactory.

*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. ↩