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Schools First Federal Credit Union

Additional Locations

Phone: (800) 462-8328 2115 N Broadway, Santa Ana, CA 92706 http://www.schoolsfirstfcu.org View Additional Web Addresses ! BBB Business Review on Schools First Federal Credit Union is being Updated by BBB!

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Description

This company offers credit union services.

Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.

Based on BBB files, this business has a BBB Rating of No Rating. The reason is as follows:

  • This business has no rating at this time because BBB file information is being reviewed and/or updated.



Additional Locations

  • 2115 N Broadway

    Santa Ana, CA 92706

  • PO Box 11547

    Santa Ana, CA 92711 (800) 462-8328 (714) 258-4000 (714) 466-8181

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Complaint Detail(s)

9/12/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: I paid my Visa credit card payment with the attached detached portion of my statement in the envelope provided by Schools First. In checking my banking account with Farmers & Merchants bank and Schools First, the check for $250.00 cleared F&M but was not posted to my Visa account. The check for my Visa was written on August 1st and cleared on August 7th. Because it was not posted, I wrote another check for the minimum amount which did clear and was posted. In checking with Schools First, I had to go to F&M to get a picture of the front and back of said check. Then back to SF Credit Union to show the proof. Eventually, F&M researched the check to find out that SF Credit Union applied this check(without my permission) to my automatically deducted, on time mortgage payment. $250.00 is a lot of money for me as I am retired on a small fixed income. This careless, egregious action on the part of SFCredit Union is absurd and unacceptable. Looks like someone needs to monitor SF Credit Union. Thankful that I am not on the road traveling between my bank and credit union in order to fix their mistake.

Desired Settlement: It seems that some agency needs to monitor Schools First Federal Credit Union and their hiring, training process in addition to their management of their credit union members' money. And someone needs to contact me with the assurance that my investments, mortgage, credit card, checking and savings accounts are secure and PROPERLY managed. Thank you for your time.

Business Response:

We have contacted our Member regarding this complaint and provided the enclosed response by email on August 29, 2014.  We will continue to work with our Member regarding this issue:

 

Dear Ms. *****,

Once again, my sincere apologies for your VISA payment being misapplied to your mortgage and the lack of follow up that occurred.  While the mispost has been corrected, the larger issue of the cause is not yet determined.  As I shared on the phone, this is a priority since we want to ensure other Members do not experience a similar issue and want to reassure you that it will not happen to you again.   We take these issues very seriously since your trust, and that of all our Members, remains the foundation of the relationships we try to build.  I have shared your experience with the Long Beach branch manager and this will be a coaching opportunity for the teammember involved.

As discussed yesterday, I have researched the flow of payments for your VISA credit card and mortgage.  Here are my insights:

·         VISA credit card and mortgage payments go to different PO boxes in different cities.  When Members send in mortgage payments they go to: Payment Processing Center, PO Box 51301, Los Angeles, CA 90051-5601.  They are processed by Cenlar, our mortgage servicer, located in New Jersey.  VISA payments go to:  SFFCU, PO Box 11908, Santa Ana, CA 92711-1908.  They are processed by our Document Management team in Tustin.

·         Mortgage and VISA credit card statements are issued separately.  They each have coupons that are on the lower half of the statement.  These coupons have the preprinted return addresses above for the respective product.  The address for VISA appears on the lower left portion of the coupon, while the mortgage return address is on the lower right portion of the coupon.  The mortgage statement is on 8 ½ by 11 inch stock, while VISA, like many credit card statements, is only 8 ½ by 7 inches.  The return envelopes also reflect these different sizes.  The envelopes each have a “see through” window where the return address on the coupon will show through.  These “see through” windows are located differently on the envelope to accommodate the different position of the return address; VISA on the lower left and mortgage on the lower right.

·         Unfortunately, during payment processing at Cenlar and here in Tustin, the coupons are not retained, so I am unable to obtain a copy of the one that accompanied your payment.  If you keep your statements, you may want to confirm that the VISA  coupon was removed from the July 22nd statement.  I will email you  “blacked out” copies of your statements for July and August once you confirm receipt of this emai

I remain perplexed as to how the VISA payment ended up at the PO Box for our mortgage servicer given the different addresses, coupon sizes and addresses.  I have checked with our team and this particular set of circumstances appears unique. 

I had hoped I would be able to identify a weakness in our team or process that caused the error; however, I have not found it.  That being said, we fully accept responsibility for the problem and hope that we can earn back your trust and rebuild our relationship.   Please do not hesitate to call me at 714-466-8108 with any additional questions.

Sincerely,

**** ******

SVP, Lending

SchoolsFirst Federal Credit Union

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

7/23/2014 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: SCHOOL FIRST CREDIT UNION ISSUSE A 1099C [Cancelation of Debt] FOR MY OLD CREDIT CARD AND MY AUTO LOAN DEBT. I AMENDED MY TAX RETURN PAYING OVER $3000 IN TAXES. AFTER THE CANCELATION OF DEBT, SCHOOL FIRST MADE ME PAY ALMOST $1000 ON MY CREDIT CARD DEBT THAT NO LONGER EXIT. SCHOOL FIRST CREDIT UNION CONTIUNE TO REPORT MY AUTO LOAN DEBT THAT HAS ALREADY BEEN FORGIVEN TO THE CREDIT BUREAU WITH A BALANCE OF OVER $9000 SCHOOL FIRST HAS CAUSED ME ALOT OF EMOTIONAL DISTRESS. THEY CONTINUE TO DISTROY MY CREDIT BY REPORTING AN INCORRECT BALANCE, FAILED TO UPDATE AND TRYING TO COLLECT ON A DEBT THAT DOES NOT LONGER EXIST.

Desired Settlement: I WANT THE AUTO TRADE LINE DELETED FROM MY CREDIT PROFILE OR CHANGE THE BALANCE TO $0 BALANCE EFFECTIVE WHEN THE 1099C WAS FILED AND STOP REPORTING TO THE CREDIT BUREAU

Business Response:

July 15, 2014

******* ******* **** ******* ****** **** **** *** ******** ** *****

Re:         Better Business Bureau Complaint ID ********

                Credit Card ending in ****

                Auto Loan xxx******

               

Dear Ms. *******,

We received a complaint dated July 4, 2014 submitted through the Better Business Bureau in reference to the current credit reporting on your credit card and auto loan with the credit union.  Your complaint states that your credit lines are reporting incorrectly because you have received a cancelation of debt form (Form 1099-C) from the credit union for both the credit card and vehicle loan referenced above and therefore the reporting balances should reflect a zero balance.  You are also claiming that the credit union collected on your credit card debt illegally because you received a cancellation of debt for it.

The information below will address your concerns.

Issuance of a Form 1099-C simply indicates that the lender has cancelled the debt and that no further collection activity will take place.  On the other hand, credit reporting is a record of your payment and loan balance history with the lender.  The two items are not related and therefore we continue to report to the credit report agencies the outstanding balance of a loan even after we have issued a Form 1099-C to our Member.

Our records do not indicate that we have issued a Form 1099-C for your credit card.  If you have received one, please provide us a copy and we will update our records.  In December of 2013, you contacted the credit union to dispute the debt for the credit card. You claimed that during the time frame in which the charges were made, you were no longer residing in the state of California and instead were a resident of the state of Texas. During January and February of 2014, several conversations occurred with you and teammembers of ************ in which you claimed identity theft and therefore an Identity Theft Victims Complaint and Affidavit form was sent for you to fill out. At that time, you were informed that all information in the packet needed to be completed and a police report in reference to the incident would need to be attached.

On February 7, 2014, we spoke with you again and you acknowledged that you had received the Identity Theft Victims form but were now instead looking to improve your credit score and inquired about a settlement. Before we proceeded with this request and due to previous conversations in which you stated that the charges on the credit report were not yours, we requested a letter stating you were retracting your identity theft claim. A hand written letter from you withdrawing the identity theft claim and requesting to settle was received the same day (please see attached).  After the retraction letter was received, we issued a settlement letter agreeing to settle for 60% of the balance for the Visa.

On March 13, 2014, you called in and spoke with an assistant manager.  At this time you explained to our teammember that you were looking to improve your credit and did not want to settle as that would not reflect as well as a paid in full loan on your credit report.  Our teammember offered to waive $199.00 in finance charges to lower your payoff balance to $868.00. It was explained to you that if you paid that balance, your credit would be updated as paid in full. The payoff was agreed upon by both parties and on March 21, 2014, a cashier’s check for $868.00 was received from you at which point your credit was updated with all the credit bureaus as “Charge off Paid in Full,” with a zero balance.   The current credit reporting on your Visa is correct.

We did issue a Form 1099-C for your auto loan for the 2012 tax year and mailed it to the address on file at the time.  Your auto loan is charged-off with a remaining balance of $9,269 and is being reported as such to the credit bureaus.  The credit reporting on your auto loan is correct.

You also claim that we continued to attempt to collect on a debt that we had issued a Form 1099-C.  Our records indicate that the last attempt to collect on this auto loan was in April 2009 which is prior to the issuance of the Form 1099-C.  Our records also indicate that the payment on the credit card was a result of your desire to improve your credit report and initiated by you.

In reviewing your claim and our records, we do not see any errors in our servicing of your loans.  If you have any questions or would like any additional information, please contact ******* *******, Assistant Manager of Collections, at l*******@schoolsfirstfcu.org or at ###-###-####.

Sincerely,

******* *******

Assistant Manager, Collections

###-###-####

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

7/26/2013 Billing/Collection Issues