ComplaintsforNew Cumberland Federal Credit Union

• Initial Complaint

  06/28/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I have been struggling financially and a few weeks ago this lender took double payments out for my vehicle and personal loan without my authorization because it was behind by two days without speaking to me or contacting me at all. After I realized this the first time I immediately called in and spoke with **** in collections and he agreed to reverse the charges and followed that up by deducting a double payment again this week (06/28/2023) He was rude and unprofessionally to me over the phone and talked down to me because I am struggling financially even after I spoke with him and informed him that it's not their fault because I am currently making about $2,000-2,500 monthly at my current position but could they work with me and reverse the charge and he said nope. I even asked to have one payment reversed and he said no rudely. I would like them to refund one of the $190.19 they deducted today 06/28/2023.

  Business response

  07/12/2023

  As of today 7/12/23, the member is five days delinquent. We have backed off the requested payments for the total amount of $190.19. After we have backed off these loans the member will be 12 days delinquent on the auto loan and signature loan. We will send out a letter via regular and certified mail as well as communicating through email that will give the member until 7/28/23 to bring his loans current and up to date. If at that point in time the loans are not brought current, we will pursue further legal action per the loan contract that was signed. Any questions please feel free to reach me at *********************. 

   

   

       Respectfully, 

                 *********;

• Initial Complaint

  11/25/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  This is a concern with my Mother In Law. I am her power of attorney now. NCFCU gave her a car loan that far exceeded the amount the vehicle she was purchasing was valued at and did not meet her DTI. She is unable to afford the car payment that was issued to her of $869.00 per month. When I questioned how she was given this loan with a payment that high when she clearly could not afford it, I was told that her loyalty to the bank was part of the reason. It should not matter if she has banked with them for 1 month or 40 years, the same criteria should be used for all clients and one of them should not be "Loyalty to the bank" when the monthly payment is not feasible for the customer.

  Business response

  12/02/2022

  ***************************** has been a member with NCFCU since 5/26/1998.  She has successfully borrowed many loans with our credit union without collection efforts on our part.  We all know her by name and vice versa.  Her direct deposits flow into her account with NCFCU and she pays all her loans back by payroll deduction.  Concerning the automobile that was financed in May 2021 we followed our loan policy, her debt to income ratio was 50%.  The maximum debt to income ratio in policy is 55%.  This may seem high but we use net not gross income.  The total amount financed, with mutually agreed upon terms, to include MSRP along with tax/tags/warranty/gap which is also within our lending guidelines.  100% financing is not uncommon in our business when working with loyal members.   

  Customer response

  12/07/2022

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:

  I do not agree with your response to the complaint.  Once again, loyalty to a bank should not be a deciding factor on loans and financing.  Loans should be based off criteria as to not over extend the client.  In my opinion, you do not have ******'s best interest in mind. You are allowing her to obtain loans that she cannot afford year after year.  The only reason your record indicate that she makes payment on time is because you automatically deduct it from her check that comes in on the 1st of the month.  Her DTI is high and her monthly bills exceed her monthly income.  We will be making a decision on what to do about her vehicle in the near future.  Loyalty or not, she has been wronged by NCFCU by allowing her to obtain loans she is unable to afford. 

  Regards,
  
  ******** ***************** & *********************

  Business response

  12/14/2022

  Character, collateral and capacity are all basic principles of lending.  This loan had all 3.  *************************** has shown her character (loyalty) over the years by never breaking her promise to pay.  The collateral was a new vehicle.  Her capacity was proven with her income which direct deposits to NCFCU.  ******** chooses to make her payments through direct deposit so that she is never behind.  This has always been set up by her request, not ours.  We are available for questions or concerns from the borrower at her request. 

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