Complaints

This profile includes complaints for Public Employees Credit Union's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Public Employees Credit Union

  306 E 10th St Austin, TX 78701-2408

• 

  Public Employees Credit Union

  PO Box 2205 Austin, TX 78768-2205

The complaint text that is displayed might not represent all complaints filed with BBB. 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.

• Initial Complaint

  Date:12/11/2024

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  This has to do with an automobile loan my wife and I took out several years ago. I recently received a notice from them that my account was past due to which I of course questioned. They claimed it was due to them purchasing an insurance policy on the vehicle because they didn't think I had insurance. Once I became aware of this, I submitted proof of insurance and they credited back a portion but not the full amount, which is the amount in my dispute. Since my last communication with their represenattive Anjahre *****, they have now reported my account 30 days delinquent with the credit bureau.I requested a copy of the full accounting of my account to see if there were any other discrepancies. I mentioned to Ms. ***** that I was having trouble navigating their online portal as it is not possible to see any transactions, and she said I wasn't the only one having trouble. I found that they have been charging me a monthly late fee almost from day one but according to my records I have been paying the account between 15 and 30 days ahead of time. The total "late fees" charged to my account is $732.28. The account number shown below is all that I have available to me from their online portal. I have no clue what the entire number is.

  Business Response

  Date: 12/13/2024

  On behalf of Public Employees Credit Union (PECU), I am responding to the complaint identified as Complaint ID ********. 
  
  Late charges:  The complainant/borrower financed the purchase of a vehicle through PECU on or about March 3, 2022.  Pursuant to the loan agreement, payments were due on the 15th of each month, beginning on April 15, 2022.  Since the inception of the loan, all loan payments have been received after the due date. The late fee is provided for in the loan contract.  Specifically, the loan contract states that the borrower will incur a late charge of 5% if payment is received by PECU more than 15 days after the due date.   21 of the 32 loan payments made to date have been received 15 days or more after the due date; those late payments incurred a late fee.
  
  Collateral Protection Insurance:  Pursuant to the loan contract, the complainant/borrower was required to maintain insurance coverage on the vehicle, with PECU as an additional insured.  The contract further states that, if insurance coverage lapses, **** is authorized to place insurance on the vehicle, with the complainant/borrower obligated to pay for the collateral protection insurance.   On or about September 13, 2024, PECU was notified that this borrowers vehicle insurance had lapsed.  Complainant/borrower was notified by letter dated September 13, 2024 of the lapse in insurance coverage and the need to provide proof of insurance to avoid lender-purchased collateral protection insurance.  Complainant/borrower was notified again on September 27, 2024.  PECU did not receive proof of insurance; insurance was purchased for the vehicle and the cost of the insurance added to the payment amount.  Complainant/borrower was notified of the placement of insurance and the cost by letter dated October 11, 2024. 
  
  On or about November 19, 2024, the complainant/borrower provided proof of insurance for a portion of the period of lapsed insurance.  The collateral protection insurance was cancelled and a portion of the premium was credited to the complainant/borrowers loan balance.  The full cost was not refunded because the proof of insurance provided did not cover the full period of lapsed insurance. 
  
  Summary:  Complainant/borrower incurred late fees due to late payments.  The contract was clear as to the due date and as to the charges incurred when late payments are made.  PECU cannot refund those charges. 
  
  However, PECU is willing to refund the remaining cost ($83.00) of the collateral protection insurance and will revise the credit report to remove the negative report relating to the delinquency that occurred due to the purchase of collateral protection insurance.   PECU sincerely regrets that our member and borrower was not aware of the insurance issue and, in an effort to assist our member, we will refund the amount of $83.00 and we will correct the credit reporting information to remove the negative credit information resulting from that late payment. 
  
  
  ******* ******
  General Counsel
  Public Employees Credit Union
  
  
  

  Customer Answer

  Date: 12/13/2024

  Complaint: 22673753
  
  I am rejecting this response because:

  I do not agree with their statement that the account was 15 or more days delinquent multiple times. I have asked for a full accounting of the account, which does not seem to be available to me online. I have yet to receive it. I did receive a partial accounting from their agent **. 

  To reiterate, I had a difficult time establishing access to the account initially and the only way I was able to make payments on line was through a transfer type portal which did not provide me with access to the account itself. This went on for at least 6 months or more before I was able to have someone walk me through the process of setting it up.

  I'm pleased that the insurance issue has been resolved and that my credit report has been updated. At this point, all I am looking for is a full activity report (or instructions on how I can access it online) of the account so that I can accurately compare my data with theirs to clear up any discrepancy. My records show that I am and have been at least 15 days ahead of schedule with payments. If there is an error on my part then so be it, but if the error is on their part then I would like all fees returned to the account.
  

  I do appreciate the prompt responses and willingness to work this out.

  
  Regards,
  
  ****** *****

  Business Response

  Date: 12/13/2024

  On behalf of Public Employees Credit Union (PECU), I am responding to the complaint identified as Complaint ID ********. 
  
  PECU regrets that our member has had difficulty establishing access to the online account records.  It is always our intent to provide as much information and access as is appropriate and helpful.   *********************** Representatives are available during business hours to assist members in establishing and maintaining online access. 
  
  With respect to the late charges incurred on this account,PECU staff has transmitted to the complainant a copy of the transaction history as well as the loan agreement.  The loan agreement established the monthly due date for payments on this account and the transaction history shows when payments were actually received by the credit union.   The transaction history has been notated to show which payments were received outside the 15-day ***** period and,therefore, incurred late charges. 
  
  PECU believes that this information will clarify the reason for the late charges. 
  
  ******* ******
  General Counsel
  Public Employees Credit Union
  
  

  Customer Answer

  Date: 12/16/2024

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that their return of insurance charges, and clearing up my credit report is a satisfactory resolution to me.
  
  Regards,
  
  ****** *****

• Initial Complaint

  Date:12/06/2024

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  On November 7, 2024, I applied for a $12,000 loan and provided all requested documentation, including proof of income (POI). Initially, I was informed by the loan officer that my (DTI) ratio was calculated at *****%, exceeding PECU's stated limit of 55%. To address this, I provided documentation related to an existing auto loan, which had been substantially paid down from my insurance company after the vehicle was deemed a total loss. I submitted the following documents:Proof of payments from my insurance company to ******, leaving a remaining balance of $5,615.27.A copy of my ************* contract.Despite providing this information, the loan officer insisted that a total loss letter was required to proceed. I explained that I was in the middle of a settlement process and that such a letter would not confirm payment but only indicate that the vehicle was deemed a total loss. Nevertheless, I made every effort to comply and engaged in numerous email exchanges to clarify the ************ resolve the matter, I visited PECU in person to discuss the issue with the loan officer and her supervisor. During this meeting, I explained the situation thoroughly. However, they maintained that the total loss letter was required, even though I had provided ample proof of payment and documentation of the *** coverage.Adding to my concerns, I was informed that my *** requirement had suddenly changed from 55% to 40% per the supervisors request. When I followed up via email on November 26, 2024, to seek an explanation for this change, the loan officer replied that the *** was not their primary concern, but the total loss letter was still needed. After calculating my DTI, it initially was lower than 55% so Im very confused and concerned. Upon reviewing my current credit report, the auto loan has been updated and is only showing a balance of a little over $5,617.25 which Gap will be covering. Im very concerned over the lack of transparency and this entire situation.

  Business Response

  Date: 12/09/2024

  On behalf of Public Employees Credit Union (PECU), I am responding to the complaint identified as Complaint I. D. 22649353. 
  
  The Complainant applied for a personal loan on November 7,2024.  After performing an analysis of the information provided by the applicant, in accordance with the underwriting policies of PECU, the loan officer noted that the applicants debt-to-income (DTI) ratio was in excess of PECUs underwriting policies.  Based on those policies, the applicant did not qualify for the loan.  
  
  In an effort to assist the applicant, the loan officer requested that the applicant provide proof of income and proof that an outstanding loan balance relating to a damaged vehicle would be paid through GAP coverage. (GAP coverage is a voluntary asset protection program designed to cover the difference between the actual cash value of a vehicle and the amount still owned on the loan used to purchase the vehicle.)  With respect to this particular application,if the proof of income was provided and if the outstanding balance of the applicants vehicle loan was paid, then the applicants debt-to-income (DTI)ratio would be adjusted and would be within underwriting policies of PECU.  
  
  The applicant did provide the requested proof of income.  And while the applicant provided information showing that GAP coverage was in place, the applicant has, to date,been unable to provide evidence that the *** claim has been approved and that the outstanding balance of the vehicle loan will be paid in full.   All GAP claims are subject to an approval process and payment is not always forthcoming. 
  
  The applicant in this matter has provided many documents showing that the vehicle with the outstanding loan was a total loss. The applicant has also provided proof that a GAP claim was submitted; however, no documentation has been provided which would show that the claim was approved,in full or in part. 
  
  The loan officer has been in regular communication with the applicant and has explained clearly what documentation is necessary in order to approve the requested loan. 
  
  The application here at issue was set to expire after 30 days (December 8, 2024.)  However, in an effort to continue to assist the applicant, PECU notified the applicant on December 5, ***** that the application period would be extended one week, to December 15, 2024. 
  
  PECU is committed to working with this applicant within its approved underwriting policies.   PECU hopes that the applicant is able to provide documentation which will allow us to approve the loan. 
  
  
  
  
  

  Customer Answer

  Date: 12/09/2024

  Complaint: 22649353

  ****** Spencer 
  
  
  I am writing in response to your recent communication regarding my personal loan application dated November 7, 2024. While I appreciate the efforts made to review my application, I have several concerns about the handling of my case and the criteria being applied.
  1. Outstanding Vehicle Loan Balance and Debt-to-Income (DTI) Ratio Calculation:
  The documentation I submitted clearly demonstrates that my auto insurance has already covered the majority of the vehicle loan balance, leaving only a little over $5,000. Additionally, this remaining balance is expected to be paid through *** coverage, as I have provided evidence of an active claim.
  Even if the *** claim payment is still pending, the fact that the majority of the loan balance($58,484), has already been paid should be sufficient for my DTI ratio calculation. The amount paid by insurance is no longer my liability and, therefore, should not be reflected in my DTI. I request clarification as to why this payment has not been factored into the recalculated DTI and why a pending $5,446 balance is causing such a delay in loan approval.
  2. Unexplained Changes in DTI Ratio:
  When my application was initially reviewed, I was informed that my DTI ratio was 55%. However, I was later informed that my DTI ratio is now 40%. This significant discrepancy raises serious questions about how my financial information is being calculated.
  Unless PECUs underwriting policies or calculations have changed, I do not understand how my DTI ratio could shift so dramatically, especially given that nothing in my financial situation has changed. I request a detailed explanation of how my DTI was initially calculated and why it was later revised, which I am asking for yet again. Transparency in this matter is critical to ensure I am being treated fairly.
  3. Disproportionate Effort for a Personal Loan:
  Finally, I must express my concern over the extensive requirements and prolonged process for this personal loan application. I have provided all requested documentation promptly and have gone above and beyond to address PECUs concerns. Yet, it feels as though additional barriers are being placed in my path, which seems excessive for a standard personal loan application.
  Request for Fair Resolution:
  I respectfully request the following:
          A detailed and transparent explanation of the change in my DTI ratio.
          Clarification on why most of the vehicle loan balance paid by my insurance has not been sufficient to resolve DTI concerns.
          A clear, accurate, and timely resolution to my loan application.
  
  I have made every effort to meet PECUs requirements within my power and hope you can address these concerns promptly. I look forward to receiving a fair and accurate response to ensure this matter is resolved without further unnecessary delay.
  Thank you for your attention to this matter.
  

  Sincerely,
  ****** Spencer 

  
  

  Business Response

  Date: 12/11/2024

  On behalf of Public Employees Credit Union (PECU), I am submitting a second response to the complaint identified as Complaint I. D. 22649353. 
  
  The Complainant applied for a personal loan on November 7,2024.  After performing an analysis of the information provided by the applicant, in accordance with the underwriting policies of PECU, the loan officer noted that the applicants debt-to-income (DTI)ratio was in excess of PECUs underwriting policies.  Based on those policies, the applicant did not qualify for the loan.  
  
  In an effort to assist the applicant, the loan officer requested that the applicant provide proof of income and proof that an outstanding loan balance relating to a damaged vehicle would be paid through *** coverage. (*** coverage is a voluntary asset protection program designed to cover the difference between the actual cash value of a vehicle and the amount still owned on the loan used to purchase the vehicle.)  With respect to this particular application,if the proof of income was provided and if the outstanding balance of the applicants vehicle loan was paid, then the applicants debt-to-income (DTI)ratio would be adjusted and would be within underwriting policies of PECU.  The proof of income was provided promptly but the *** information had not been provided at the time of PECUs first response to this complaint. 
  
  On December 10, 2024,PECU received the requested information showing that the outstanding balance of the applicants vehicle loan will be paid. With this information, the applicants DTI will be within the limits of underwriting policies and PECU will be able to approve the loan. 
  
  PECU is committed to working with all applicants, subject to requirements of approved underwriting policies.   With the additional information provided yesterday, PECU will be pleased to work with this applicant to make this personal loan.
  
  ******* ******
  General Counsel
  Public Employees Credit Union
  
  
  

• Initial Complaint

  Date:02/02/2023

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  My complaint against Public Employee Credit Union is over the following -- Inaccurate reporting of funds paid towards ************* loan - Negligence in providing either electronic or written invoices from day 1 - I had to call to get the account information for my first payment - The posting for a $***** *** insurance adjustment on a vehicle insured since day 1 I financed a loan of $39,603 on a white 2021 ********** Atlas. According to the only paper invoice I've ever received from them (December), I owe $39,525.They state that I owe $***** for an insurance adjustment because they did not have proof of my insurance. Not only can I prove I insured the vehicle from the day of purchase but even if taking into account that additional *****, they are not showing the 12 payment I had made previously. Of the 12 payments - all of which were performed electronically, only I am providing the following documents:- Screenshot of my 12 bank transfers totally **** direct to PECU's Ecm pay from my USAA account - Screenshot of my automatic payment from my insurance company showing statement date (posted 6 days after sale), account number, and listed vehicle - Proof of amount financed on the *** addendum - The December invoice - Today's payment, bringing the total paid to **** -Picture proof of a massive statement backlog and envelopes that all arrived on the same day I know for a fact they should have my current insurance information. I made sure SafeCo sent over all of the information. I want the following:The balance adjusted to accurately reflect ALL payments The 'Payments Adjusted' removed for the gap insurance Monthly statements emailed to me at *************************

  Business Response

  Date: 02/07/2023

  Better Business Bureau
  
  Complaint ID # ********
  
  February 7, 2023
  
  Response to Complaint Filed with Better Business Bureau 
  
  On behalf of Public Employees Credit Union (PECU), *************** to a complaint filed on February 2, 2023 against the credit union.  The complaint is identified as Complaint ID #********.  The person filing the complaint will be referred to as Complainant. 
  
  By way of background, Complainant financed the purchase of a 2021 ********** Atlas through a loan obtained from PECU on January 3,2022.  The original loan balance was $39,676.89.  Complainants monthly payment obligation is $600.00 for a term of 72 months.  The loan agreement requires borrowers to maintain physical damage insurance with comprehensive and collision coverage on the vehicle, with a maximum deductible of $1000.00 and with PECU as a named insured.  At the time the loan was obtained, Complainant represented to PECU that the required coverage would be acquired through ***************** (See Agreement to ***************** Policy.)
  
  The loan agreement further provides that if a borrower fails to provide proof of such insurance coverage, PECU is authorized to purchase insurance that covers PECUs interest in the vehicle and to add the premium for such insurance to the loan balance.  (See Paragraphs 2.d and 2.e of the Motor Vehicle Retail Installment Sales Contract.)  This type of insurance coverage is referred to as *** or Vendors Single Interest insurance.  This is necessary to protect a lender from loss in the event of damage to an uninsured vehicle.
  
  Complainant brings two complaints against PECU.  The first involves the cost of insurance added to his loan.  Specifically, Complainant alleges that PECU has wrongfully increased his obligation by adding a product known as GAP insurance to his loan in the amount of $5,426.00.  In fact, this amount represents the addition of *** insurance (defined above) in accordance with the loan agreement. 
  
  Shortly after the loan was opened, Complainant failed to provide proof of the required insurance coverage.  Notice letters regarding this lapse in coverage were sent to Complainant on February 17, 2022, March 17, 2022 and May 10, 2022. (See attached letters.)  Since PECU was not able to obtain the needed proof of insurance, *** insurance was purchased and the cost of the premium paid by **** was added to the loan balance on October 13, 2022.  ************** premium of $5,426.00 should have been added in April, 2022, but due to an error on the part of PECU it was not added until October.)
  
  On January 24, 2023, Complainant provided PECU with proof of insurance for the period of April 2, 2022 through April 2, 2023.  Based on that period of coverage, PECU obtained a partial refund of the *** premium in the amount of $4,032.00 and applied that amount to Complainants loan balance.  PECU was unable to obtain a full refund as the proof of insurance provided by ******************** did not cover the period of January 3, 2022 to April 2, 2022.  If Complainant can provide proof of coverage for that time period, the additional refund can and will be obtained and applied to the loan. 
  
  Complainants second complaint alleges that PECU has failed to account for all thirteen (13) monthly payments made toward the loan balance.  To the contrary, the attached transaction history shows thirteen (13) payments of $600.00 each, all of which were applied to Complainants loan.  (See Mini-Statement.)
  
  PECU sincerely hopes that this resolves the instant Complaint. 
  
  
  ***************************
  General Counsel
  **************
  ******************
  
  

  Customer Answer

  Date: 02/08/2023

  Complaint: 18969659
  
  

  I am rejecting this response because:

  
  

  If you look at the automatic payment reminder, it clearly shows statement date under the account number of 1/09/22.  There is also the effective date of 4/02/21 - 4/02/22 in the policy in which the ********** is listed.  ******************** made it clear that the vehicle was covered immediately and the first payment was due the following month.  Attached is a screenshot from the transaction history from **************** showing the policy change on 01/03/22 - the same date of purchase as the vehicle.

  
  

  Also included is a screen from the Safeco website showing my documents home page with the policy change date and a third screenshot of the card from that policy change showing the effective coverage from 4/02/21 - 4/02/22.
  

  
  

  Also attached is a screenshot of my call logs with your toll free number on Feb 7, 2022 that I had made because your Bank's letters and statements did not arrive.  I spoke to a fantastic agent who quickly assisted me with providing me the account number and transaction number to make single E-payments from the website.  I was not informed at the time of the call that my declaration of insurance had not been sent by my provider.  Presumably if my address information is on file then surely my phone number is as well.  Does PECU not make phone calls in situations like this?  Furthermore, my insurance company and it's contact information is on that document.  Why were they not contacted either?
  

  
  

  For future correspondence, I would appreciate it if you spelled my name correctly - it's *******, not Shearing.
  

  
  Regards,
  
  *****************************

  Business Response

  Date: 02/08/2023

  Better Business Bureau
  
  Complaint ID # ********
  
  February 8, 2023
  
  Further Response to Complaint Filed with Better Business Bureau 
  
  On behalf of Public Employees Credit Union (PECU), *************** to the additional information submitted by Complainant on February 8, 2023 in this matter.  The complaint is identified as Complaint ID #********.  The person filing the complaint will be referred to as Complainant. 
  
  As noted earlier, on January 24, 2023, Complainant provided PECU with proof of insurance for the period of April 2, 2022 through April 2,2023.  Based on that period of coverage,**** obtained a partial refund of the *** premium in the amount of $4,032.00 and applied that amount to Complainants loan balance.  **** was unable to obtain a full refund as the proof of insurance provided by Complainant did not cover the period of January 3, 2022 to April 2, 2022. 
  
  Complainant has now provided a ***** ******************* Card and a screenshot of a page from an insurance agency website.  Unfortunately, neither of those documents show comprehensive and collision insurance coverage as required by the loan agreement.  The document that will show the required coverage is the declarations page of the insurance policy issued to the Complainant.  The declarations page will show the types of coverage and the dates of coverage.  It will also show the vehicle description and show the lender (PECU) as an insured party.  If Complainant can provide proof of coverage for that time period, the additional refund can and will be obtained and applied to the loan. 
  
  PECU regrets that Complainant was not satisfied with the information provided.  PECU sincerely hopes that Complainant can provide the requested declarations page to prove required coverage for the relevant dates.  Upon provision of that information, PECU will be able to obtain the additional refund and apply it to the loan.    
  
  
  ***************************
  General Counsel
  **************
  ******************

  Customer Answer

  Date: 02/08/2023

  Complaint: 18969659
  

   

  Both the previous and current declarations.

  
  Regards,
  
  *****************************

  Business Response

  Date: 02/15/2023

  Better Business Bureau
  
  Complaint ID # ********
  
  February 15, 2023
  
  Further Response to Complaint Filed with Better Business Bureau 
  
  On behalf of Public Employees Credit Union (PECU), *************** to the additional information submitted by Complainant on February 8,2023 in this matter.  The complaint is identified as Complaint ID #********.  The person filing the complaint will be referred to as Complainant. 
  
  As noted earlier, on January 24, 2023, Complainant provided PECU with proof of insurance for the period of April 2, 2022 through April 2,2023.  Based on that period of coverage,**** obtained a partial refund of the *** premium in the amount of $4,032.00 and applied that amount to Complainants loan balance.  PECU was unable to obtain a full refund as the proof of insurance provided by Complainant did not cover the period of January 3, 2022 to April 2, 2022. 
  
  On February 8, 2023, Complainant provided additional documentation to prove that the collateral was properly covered by the required forms of insurance from the period January 3, 2022 to April 2, 2022.  These referenced documents show a policy period of April 2, 2021 to April 2, 2022 with changes effective January 3,2022.  Those changes included adding the collateral here at issue and showing Public Employees Credit Union as lienholder.  Once Complainant provided that documentation on February 8, 2023,  PECU was able to obtain a refund of the remaining *** premium. 
  
  The additional refund of $1,394.00 has been issued by the insurance carrier which supplies the insurance.  Upon receipt of the refund, PECU will apply that sum of $1,394.00 to the loan balance of Complainant.   
  
  PECU appreciates the additional documentation supplied by Complainant on February 8, 2023 and hopes that this matter will soon be resolved to the satisfaction of Complainant.
  
  
  ***************************
  General Counsel
  **************
  ******************

  Customer Answer

  Date: 02/15/2023

  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.
  
  Regards,
  
  *****************************