BBB Logo

Better Business Bureau ®
Start With Trust®
North Alabama

BBB Business Review

Is this your Business?

Consumer Complaints

BBB Accredited Business since 01/01/1965

Redstone Federal Credit Union

Phone: (256) 837-6110

BBB Business Reviews may not be reproduced for sales or promotional purposes.

Customer Complaints Summary

10 complaints closed with BBB in last 3 years | 5 closed in last 12 months
Complaint TypeTotal Closed Complaints
Billing / Collection Issues3
Problems with Product / Service7
Advertising / Sales Issues0
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints10

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (10)BBB Closure Definitions
05/14/2014Problems with Product / Service | Read Complaint Details
X

Additional Notes

Complaint Category: Failure to honor a contract or agreement

Complaint: I was asked for admendentment changes on the house in Marchandafter we gave the information they said we did not meet the 10 start in June.
Never did they ever say anything abou the 10 days. Just the admendentment and then it was all over.

Initial Business Response
In a letter from our attorney, the borrower was notified of 11 events of default under the note, mortgage, construction loan agreement and other agreements. As noted by the borrower, this followed a minimally 6 month period of time, during which RFCU repeatedly attempted to work with the borrower to resolve the issues and return the relationship to good standing. The borrower's unwillingness or inability to resolve all of the issues on a timely basis led to the declaration of default. It is also noteworthy that numerous other residential construction projects with financing supplied by RFCU were begun and completed during the time of our work with the borrower to resolve the issues resulting from changes he initiated. We sincerely regret that our efforts to resolve this matter through other means were not successful.

Initial Consumer Rebuttal
(The consumer indicated he/she DID NOT accept the response from the business.)
RFCU repeatedly attempted to work with the borrower to resolve the issues and return the relationship to good standing. The borrower's unwillingness or inability to resolve all of the issues on a timely basis led to the declaration of default. They never tried to work with me. They only sent a message too me closing the loan after ma and the builder gave them all the information they asked for. Emails can prove that.


Final Business Response
On April 21st, we began a conversation with Mr. Turner about the events leading up to the Notice of Default. At his request, some of this discussion was handled through exchange of a series of emails. On April 29th, we concluded this discussion in a telephone conversation in which he asked for a revised pay-off amount and stated how the payoff would be paid. On April 30th, detailed information about the pay off was given to him, including the amounts that were refunded from closing costs. On May 1st, we discussed the detail of pay off amount calculation, including amounts refunded, and payment of all remaining amounts owed, as agreed. We consider this matter closed.

Complaint Resolution: Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.

04/08/2014Problems with Product / Service | Read Complaint Details
X

Additional Notes

Complaint Category: None of the Above - Refund or Exchange Complaint Issue

Complaint: I was charged insufficient funds fees for charges I didn't authorize.
I was charged from PayPal, $.30 cents, and $1.00 recently, and PayPal refuses to reverse these charges. I have reported them as not authorized, and they refuse. For this, I received 2 $25 insufficient fund fees which is highway robbery. I called the member support center and was told that nothing could be done about the charges, I'd have to take it up with PayPal. I am extremely upset over this because it's not right. PayPal refuses to do anything, and apparently I have no recourse whatsoever against PayPal when they take my money, so basically if they wanted to come in and just take all my money, I would have absolutely no recourse whatsoever to get my money back. This is unacceptable to me.

Initial Consumer Rebuttal
(The consumer indicated he/she ACCEPTED the response from the business.)
I am so thankful that you were finally able to respond and resolve this issue. As my bank, I fully expect you to provide me with the customer service and experience I deserve from you. If I was a check bouncer, or irresponsible with my checking, I would not have asked for a refund. All I wanted was a little customer service, and you finally provided me with that. Thanks....

I will handle my future problems with Pay Pal, but they shouldn't have carte blanche access to my bank account and just be able to do what they did. I am handling them appropriately. Thanks again...

Complaint Resolution: Company resolved the complaint issues. The consumer acknowledged acceptance to BBB.

09/23/2013Problems with Product / Service | Read Complaint Details
X

Additional Notes

Complaint Category: None of the Above - Customer Service Complaint Issue

Complaint: After being falsely charged for a transaction I did not approve I was incurred two fees which should not have been assessed to my account.
A paypal transaction that I didn't approve of falsely came through on my business checking account. This transaction caused a check to bounce and my company to incur two separate charges of 25.00 which it never should have received. When I called the lady that I spoke with (*******) was condescending. She refused to reverse the charges even though I told her these charges were not approved and I don't know why they were presented against my account.

Business' Initial Response
Contact Name and Title: ***** **** AVP
Contact Phone: XXX-XXX-XXXX
An exact duplicate was mailed to member in paper form.


September 10, 2013

Mr. ****** ** *******
XXXXX ** ******* ***
Guntersville, AL XXXXX

Dear Mr. *******,

My name is ***** ***** Assistant Vice President in the Retail Delivery division of Redstone Federal Credit Union. I am writing in response to your recently submitted Better Business Bureau complaint and your request for Redstone to refund two $25.00 charges to your business checking account. Mr. ******* the mission here at Redstone is 'striving to enrich the member experience" and in your specific situation you indicate that we have not met your expectations.

We have researched your situation and reviewed the transactions leading up to the two charges being accessed to your account. The telephone conversation recording of your interaction with the Redstone contact center agent has also been reviewed.

Our research has identified that the transactions were processed appropriately. I identified transaction history on your account with PayPal. These transactions were processed electronically with PayPal. Therefore Redstone would have no knowledge that you had not approved these transactions. I recommend you contact PayPal to find out why they submitted the transactions.

Mr. ******* we apologize for any inconvenience this situation has created. As a courtesy your two fees have been refunded into the account in question. Thank you for your feedback and comments. Redstone does take every member feedback and comment seriously. We use them as learning opportunities and training aids.

Thank you also for your membership and continued support of Redstone Federal Credit Union.

Complaint Resolution: Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.

07/15/2013Problems with Product / Service | Read Complaint Details
X

Additional Notes

Complaint Category: Failure to respond to phone calls or written requests for assistance or support

Complaint: My problem is prolonging my loan till a higher interest rate was made in
effect.

Business' Initial Response
Contact Name and Title: **** N ***** VP Lending
Contact Phone: XXX-XXX-XXXX
Contact Email: *****@redfcu.org
We have examined the records of this application and determined that we did not give the applicant adequate notice of the specific expiration of the second rate lock. Therefore, we will honor the 3% rate if the loan is closed by July 28, 2013.

Complaint Resolution: Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.

05/28/2013Billing / Collection Issues | Read Complaint Details
X

Additional Notes

Complaint Category: None of the Above - Credit, Billing or Collection Complaint Issue

Complaint: Redstone Federal Credit Loan ***** Failure to withdraw auto payment
I recently accured an auto loan ***** with the Redstone Federal Credit Union. I went to the Redstone Federal Credit Union Site and put in my information for auto payment. I received an email stating my payment (03/02/13) was late. The same day I had made the payment. Two days later, I went to the Redstone Federal Credit Union at Redstone Arsenal and aquired about the late payment. I was informed, since the payment was only 32 days late it would not be on my credit report. I checked this morning and it is the only late payment on my credit report and has affected by credit score. The same day at the RFCU, the employee help me enter automatic payments for account *****.

Business' Initial Response
Contact Name and Title: S.***** SR AVP Lending Op
Contact Phone: XXX XXX XXXX
Contact Email: *****@redfcu.org

"This member was late and incurred a late fee on the subject auto loan. However, our records indicate that this member was never as much as 30 days late on this auto loan and we have never reported him 30 or more days late. As a precaution, on 5/14/13, we again reported electronically to all three credit reporting agencies timely payment on this auto loan---to remove any doubt of erroneous late reporting on this trade."

Complaint Resolution: Company addressed the complaint issues. The consumer failed to acknowledge acceptance to BBB.

Page 1 of 2
07/30/2014Billing / Collection Issues | Read Complaint Details
X

Additional Notes

Complaint Category: Improper collection practices

Complaint: Overdraft fees withdrawn from account that showed positive balance online. A total of $125.00 in overdraft fees should be credited to my account.
I have called the bank several times regarding this matter and each time was told that, although my account showed a positive balance to me online, the account was in a negative balance when the first overdraft fee was withdrawn. I have had this account for many years, check it every morning, and am well aware of the fact that I am to check the "available" balance, which I do. My account did not show a negative balance when the overdraft charges first appeared. The customer service representatives have been less than helpful and insist that the account was in a negative state. My account is currently overdrawn and the legitimate charges for that overdraft I have no issues with paying. However, being a loyal customer for more than 10 years, I am not about to pay for illegal overdraft charges. This is outrageous. I have tried to explain that I never saw a negative balance on my account which I checked it online, but all I've been told is that they do not know what I saw online, but that the account was clearly in a negative state.

Initial Business Response
Thank you for your correspondence dated July 8, 2014, and for sharing your concerns specific to the manner in which Redstone Federal Credit Union imposes overdraft fees. We take our members concerns very seriously, and would like to apologize for the way that we made you feel during your interaction with our representative.

Because of your concern, we have thoroughly investigated the transactions in question. We found that there were five pending transactions during time frame you mentioned: four transactions in the amount of $99.95, and one in the amount of $49.95. All were from a company by the name of Lilvo LTD, and each incurred a $1.00 international transaction fee. These Point of Sale (POS) transactions always have a "pending" period associated with them that can last between 24 to 48 hours (or longer) depending on how, when, and where the purchase was made. This means that upon making the purchase, the transaction shows in your account as pending, but the funds have not yet been debited. Because of this, we encourage our members to treat these pending purchases as fully completed transactions - thereby avoiding overdrafting their account in error when other transactions or debits take place concurrently, resulting in an overdraft to your account when the pending items clear.

Because our mission here at Redstone is "Striving to Enrich the Member Experience," and we hold all of our members in the highest regard, I have refunded $63.00 in overdraft fees as a courtesy. Please rest assured that Redstone Federal Credit Union is operating fully within the legal limits of the laws, rules, and regulations impose by our Federal Regulatory Agencies, especially as they pertain to overdraft fees.

In your email, you stated that you would like to opt-out of the Overdraft Protection Program. I have provided my contact information below so that we may discuss other options specific to your needs that might serve you better for overdraft protection and eliminate this undue stress.

Ms. *********, thank you again for your feedback and comments specific to the business practices of Redstone Federal Credit Union. We take each and every member comment seriously and we use them as learning opportunities. Thank you also for your valuable membership and continued support of Redstone Federal Credit Union.

Initial Consumer Rebuttal
Redstone has credited my checking account with a courtesy overdraft refund of $63.00, which is fine, but is not the total amount of overdraft fees that were illegally taken from my account. That amount is the $125.00 that I initially requested by credited to my account. If Redstone is willing to credit my account the additional monies due of $62.00 (totaling $125.00), then this matter will be resolved. Thank you.

Final Business Response
Thank you for your follow on correspondence dated July 14, 2014 and for sharing your continued concerns regarding the overdraft fees imposed on your account. As noted in our correspondence to you dated July 11, 2014, we thoroughly investigated the transactions you have questioned and found no error on behalf of the Credit Union. These transactions consisted of five pending items, and as explained in our last letter, Redstone has no control over the time period any item remains in "pending" status. This is the reason we encourage our members to treat all pending purchases as fully completed transactions.

Ms. *********, we have left several messages at the contact number we have on file for you and have received no response. As well, we have provided you with $63.00 in courtesy overdraft refunds, and have tried on numerous occasions to speak with you to discuss other options specific to your needs. At this time, we cannot provide any further overdraft refunds. If you would like to speak with us further on this matter, please contact me through one of the below channels and I would be glad to help you.

We thank you again for your continued feedback and comments specific to the business practices of Redstone Federal Credit Union. We want to assure you that we are taking your concerns very seriously and feel that we have addressed this issue fully. Again, should you wish to speak with me, or another one of our staff, please don't hesitate to call.

Final Consumer Response
***** **** from Redstone called and left a message for me to return his call, which I have no intention of doing. I have discussed this matter with more than one person already at Redstone. I am still owed $62.00 to my checking account in order to cover the $125.00 in overdraft fees that were illegally taken from my account.

Complaint Resolution: BBB determined that despite the company's reasonable effort to address complaint issues, the consumer remained dissatisfied.

07/11/2014Problems with Product / Service | Read Complaint Details
X

Additional Notes

Complaint: Checking and savings account was closed and money withdrawn without my authorization.
06/27/14 @ 2:41 pm. I phoned rfcu to ask why i could not access my online banking. I was told by Wanda that my account was terminated and the monies in checking and savings had been taken by rfcu. I then asked wanda if she could send me a statement telling me what she had just told me nd she said that i would have to write a handwritten letter requesting said information. When i got home there was a message on my answering machine stating that they could not send me any information regarding my account. I had income tax refund scheduled to go into the account. where did that money go? I was suspicious when i started using the account after it had lay dormant for years. The teller then could not find my member number, so they issued me a new one. This is suspicious behavior because i was getting a statement of the money which was drawing a small amount of interest. I believe someone may have been using this account to launder dirty money.

Initial Business Response
Thank you for your communication of June 30, 2014, with regard to the above. Attached is a copy of the case particulars. l represent Redstone Federal Credit Union, and have been asked to respond to the complaint Mr. Sellers has placed with you.
Mr. Sellers owes my client a deficiency balance on a vehicle loan which originated in November of 2013. The loan was defaulted on, the subject vehicle was repossessed in February, 2014, and was sold in April, 2014. After the deficiency balance was established, pursuant to the setoff rights in the loan contract, $13.09 was transferred towards the loan balance from Mr. Sellers' savings account, and $13.95, from his checking account. The Credit Union's records show no history of a tax refund deposit this year and, in fact, the last deposit into Mr. Sellers' accounts appears to have been a "bill payer" deposit in October of 2013.
Redstone Federal Credit Union would invite Mr. Sellers to make arrangements to clear the outstanding balance he owes on the vehicle loan, which is $1,864.56, plus interest and other charges provided for in his loan document.
Please let me know if you need anything further.

Initial Consumer Rebuttal
(The consumer indicated he/she DID NOT accept the response from the business.)
Redstone Federal Credit Union admits taking the monies and closing both accounts. The account was designed to have payment made from only one account and not both. Redstone Federal Credit union is not providing information of the current loan value of the Automobile. Redstone Federal may have sold the car for way less than loan value and failed to notify me of a way I could buy the car back. I was not notified that the monies was taken and the account being closed which resulted in hardship when trying to purchase food with the money in account. Because of Redstone's FAILURE TO NOTIFY, I request the Federal Authorities to be notified and a complaint filed against Redstone Federal Credit Union in Federal Court. I am not aware of any setoff rights that Redstone alleges exists.

Complaint Resolution: BBB determined the company made a reasonable offer to resolve the issues, but the consumer did not accept the offer.

Industry Comparison| Chart

Credit Unions, Mortgage Bankers, Financial Services, Real Estate Loans, Consumer Finance & Loan Companies, Loans - Small Business, Loans, Credit Cards & Plans

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.

X

What is a BBB Business Review?

We offer free reviews on businesses that include background, licensing, consumer experience and other information such as governmental actions that is known to BBB. These reviews are provided for businesses that are BBB accredited and also for businesses that are not BBB accredited.

X

BBB Reporting Policy

As a matter of policy, BBB does not endorse any product, service or business.

BBB Business Reviews are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Review is believed reliable but not guaranteed as to accuracy.

BBB Business Reviews generally cover a three-year reporting period. BBB Business Reviews are subject to change at any time.