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Complaint Details
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Initial Complaint
11/07/2023
- Complaint Type:
- Sales and Advertising Issues
- Status:
- Answered
1/4/2023 we purchased a vehicle 00 **** F250 for ****** the credit union informed us that they would only be able to do vehicle loan for ****** and that a personal loan for *****. Before we signed any forms the loan agent informed us we can get gap insurance on both loans due to being for a vehicle. Loan agent confirmed this request with another employee. In July the vehicle was marked as a total loss and the loan company only covered one of the loans with gap and not the other. When we called at the time of total loss, they would not call us back, finally they told us that they can not do that and sorry that we were told otherwise. My husband and I was both present that day I even told them that if we can not get gap on both loans we don't want the vehicle.Business response
11/16/2023
When this loan originated the Kobers were informed the vehicle was over the JD Power appraisal value and that we are only able to finance up to 100% of the value. They decided they wanted to this vehicle and an unsecured loan was made for the balance they wanted to purchase this truck.
*** Guaranteed Asset Protection is an optional protection the member pays $325 to cover a financed total loss vehicle if insurance determines a value less than financed it will cover the remaining balance and give the member (purchaser of ***) and additional $1,000 if they finance another vehicle with us. The *** program requires a VIN to be entered in order to sell a policy therefore it only covers collateral loans.
The loan documents clearly state on the *** form the amount financed and covered under ***. This is a snippet from the original digitally signed and authenticated loan documents.
The Security Agreement on the secured loan itemizes the amount financed check to seller (which I have marked out) $11,200.00, $6.00 for NOL (Notice of Lien) and $325.00 for the purchase of ***. The unsecured loan they obtained does not have the fee for ***, there is not a form in their signed loan documents indicated a *** policy and it is also not itemized on their unsecured Security Agreement shown below. I have personally spoken to them and sympathize with the situation which is why we always inform members of the JD Power appraised value versus the purchase price so they can make an informed decision. Original complete authenticated forms can be provided upon request.
Secured Loan Security Agreement Itemization
Unsecured Loan Security Agreement Itemization
***********************
President
Mercy Credit Union
Customer response
11/21/2023
Complaint: 20833124
I am rejecting this response because:
When we asked the loan officer about the gap on both she consulted with the other loan officer/ employee and we were told that we can get the gap on both. We signed that day then the next day or two we received a second docu sign being informed the date was wrong. How are we supposed to place trust in the business for looking out for us so we dont get in over our heads. We were misinformed and were never given the correct information. Customers should be informed of this information upfront not when something happens. The week of the issue and claim file we made multiple calls 2 times a day Daily for a week prior to insurance sending check with no response from the credit union.
Sincerely,
***************************
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