BBB Business Review

BBB Accredited Business since 05/13/2003

Kinecta Federal Credit Union

(310) 643-55881440 Rosecrans Avenue, Manhattan BeachCA 90266

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BBB Accreditation

A BBB Accredited Business since 05/13/2003

BBB has determined that Kinecta Federal Credit Union meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised Kinecta Federal Credit Union's rating include:

  • Length of time business has been operating.
  • Response to 21 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.

Customer Complaints SummaryRead complaint details

21 complaints closed with BBB in last 3 years | 9 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues1
Billing / Collection Issues12
Problems with Product / Service8
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints 21

Customer Reviews Summary Read customer reviews

2 Customer Reviews Customer Reviews on Kinecta Federal Credit Union

Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 2
Total Customer Reviews 2 Customer Reviews

Complaint Breakdown by Resolution

Complaint Resolution Log (21)
11/09/2015Problems with Product / Service | Read Complaint Details
X

Complaint
Rate increase on my auto loan without notice and a demand that I pay $1400 within 10 days of the notice.
Every 6-8 months since I have opened the loan, Kinecta sends me a notification that they are going to raise my rate on account number XXXXXXX-L01 if I do not insure my vehicle to their specifications. Ever since I have purchased the vehicle, it has been insured and always met their specifications. There has never been a laps in coverage, yet they send me notices that my car is not insured and I need to insure it or they will raise my rates. They usually give me 7 days to make sure it is insured, which I contact the insurance company and have them send over the documents.

This latest time, I received a notice from Kinecta that they are just flat up raising my rates and I have 10 days from the date of the letter which is X-XX-XX to pay the difference of $1400. I received the letter on 10-3-15. There was no prior notice this time and they refused to back down from the rate change when I called in on XX-X-XX when I received the notice.

Desired Settlement
I seek from the business for them to not raise my rate and to stop trying to raise my rates and get more money from me by making these false claims about my insurance coverage in the future.

Business Response
Thank you for your letter to the Better Business Bureau (BBB) regarding the recent notice you received from Kinecta Federal Credit Union about your auto loan.
Our research on the issue confirms that on Sept. 1, 2015, we sent you a letter to advise you that your insurance had expired, and we requested proof of current insurance. We sent a second letter on Sept. 22, 2015 notifying you that without proof of insurance, we would need to add CPI (collateral protection insurance) to your loan in the amount of $1396. On Sept. 24, 2015, we received proof of insurance and CPI was not added to your loan. However, the deductible for collision is at $1500, which is higher than our $1000 guidelines permit. As a courtesy, we have approved an exception for you, which allows you to maintain $1500 deductible for collision.

We apologize for any confusion caused by this. Thank you for giving us the opportunity to fulfill your financial service needs.

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
If this was a one time occurrence, this would be fine, but this is the 8th occurrence of this happening since I got this loan through them. The first time was 2 months after the loan was set up and they even required me to give them a copy of the insurance before they finalized the loan.

Besides that, I never received the letter they claimed to have sent on Sept 1st. When I called on Oct 3rd after receiving that letter, they didn't mention things were squared away and insisted I had to choose to pay the $1400 up front or have it divided up with additional financial charges instilled.

Finally, since I live in Az, the state would have contacted me and revoked my registration on the car until the insurance was squared away within 2 weeks of it not being covered by insurance.

The insurance is payed with an automatic payment through the checking account and there has never been any lapse of coverage nor has it ever gone without coverage. I do not understand why I have to keep getting harassed because they cannot keep their books straight or even verify themselves if a car is covered when it is. Especially when an issue was apparently "corrected" but they did not bother to notify me when it was, set me a notice sometime before the one I received on Oct 3rd, or the fact that they waited 27 days after it was "corrected" to acknowledge it was corrected.

Final Business Response
We received your rebuttal to our response via the Better Business Bureau (BBB). I understand that *****, from our Loan Servicing team, called and spoke with you to explain why you received collateral protection insurance letters from us initially, as well as to review the additional letters sent regarding your $1500 deductible, which was higher than our guidelines permit. We approved the higher deductible on Oct. 13, 2015. As ***** assured you, these issues have now been resolved, and we currently have the required evidence of insurance for your loan. Please feel free to contact ***** directly if you have any questions or concerns. I understand she provided you with her direct phone number.

We apologize for any confusion caused by this. Thank you for giving us the opportunity to fulfill your financial service needs.


Final Consumer Response
(The consumer indicated he/she ACCEPTED the response from the business.)
A Kinecta employee contacted me directly and said she would handle all issues I have personally.

06/22/2015Billing / Collection Issues | Read Complaint Details
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Complaint
Taxes collected via escrow. New tax year (XXXX) were erroneously doubled. Thereby causing in increase in payments.
Received a letter from Kinecta regarding anticipated escrow account disbursement. The taxes appear to doubled. School taxes (actual) are $661.08 due in July and $661.08 due in February. Kinecta has $1613.00 due in July and $1613.00 due in February. City tax (actual) $894.64 due in April and $894.62 due in October. Kinecta has $1736.00 due in October and $1736.00 due in April. Despite offering to send "Account History Summary Report" indicating what the taxes are, both the customer service rep nor the supervisor would accept this information. They are requesting a copy of the tax bill which does not come out until July. I explained to them that I never gave them this original information and asked how they obtained it initially...they explained that since I am the new owner of this condo, that it needs to be assessed by the tax office and that there were exemptions on the unit related to the previous owner. I was at the tax office and was told this was a lie. The only exemptions on the unit are basic STAR which both the previous owner and myself are eligible for. So, in essence, the credit union is collecting double taxes to keep in an account until I can prove otherwise. I believe this is fraudulent practice. They were already collecting approximately $440/month for taxes for the first year, since they do not account for STAR in the first year. This equal approximately $5280/year. My actual taxes with STAR are $3111.82 per the Peekskill Tax Office. Kinecta has my taxes as $6698.00...more than DOUBLE the actual amount. I offered to send the account history summary report, they said this was unacceptable.

Desired Settlement
I am requesting that the business correct the error. They need to obtain correct information and utilize it correctly. The supervisor telling me that there were exemptions such as "homestead" (an exemption not even available in NY) on this unit is simply not true.

Business Response
June 15, 2015

***** ******
*** ******* ******
********** NY XXXXX

Dear Ms. ******:

Thank you for your letter to the Better Business Bureau (BBB) to discuss your concern with being assessed additional escrow charges for your mortgage loan with Kinecta Federal Credit Union. The Credit Union apologizes for the level of service you received.

When we received your complaint from the BBB, our staff immediately conducted an investigation to determine the circumstances surrounding your concern. In reviewing your mortgage loan account, we determined that your escrow account was incorrectly assessed double the amount of the taxes that were owed. The error occurred when updating your property tax information based on the disbursement amount from your escrow account with Kinecta.

We apologize for this error and the frustration it has caused you. Please be assured the matter has been corrected.

I understand that you have spoken with Kinecta staff, and were informed that you will be provided a refund in the amount of $896.60. We hope that the refund of the surplus to your escrow account satisfies your concerns. Additionally, our staff has received focused training to ensure that this experience does not recur for you or any other members.

Thank you for giving us the opportunity to fulfill your financial service needs. If we can be of further assistance, please do not hesitate to contact ******* ****** Vice President of Loan Servicing, at 310.643.2290.



****** ********
Executive Vice President and Chief Operating Officer


Consumer Response
(The consumer indicated he/she ACCEPTED the response from the business.)
Thank you! The matter was corrected in a very timely manner.

02/10/2015Problems with Product / Service | Read Complaint Details
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Complaint
This company reversed the names on a cosigned loan without permission. The cosigners name was installed as the primary lender without my permission.
in August 2014 my son Antonio ***** applied to Kinecta Federal Credit Union to refinance his auto loan using myself ******* ***** as a cosigner, which is the way his original loan was prepared and what he requested to be done by this company, which this company agreed to, after this new refinance loan was approved and processed by this company my name was automatically installed as a primary lender without my permission which I did not agree to. Kinecta Federal Credit Union reversed our names on this loan on their own without informing either of us, after many calls to this company I've been told nothing can be done about this and I have to accept this, is this legal? my goal is to get this changed to the original way it was requested with my son as the primary and myself as the cosigner.

Desired Settlement
My goal is to get this changed to the original way it was requested and agreed to with my son as the primary lender and myself as the cosigner.

Business Response
January 12, 2015

La Monte *****
**** N. **** Street
********** WI XXXXX

Dear Mr. *****:

Thank you for contacting the Better Business Bureau (BBB) regarding your experience with Kinecta Federal Credit Union. I apologize for the confusion and frustration this matter has caused you.

When we received your letter from the BBB, I requested an immediate investigation to determine the circumstances surrounding your concern. Our records indicate that in September 2014, you refinanced an auto loan on a 2012 Chevrolet Impala with Kinecta Federal Credit Union, which reduced the interest rate from 7.98% to 4.49% APR.

When the credit application was submitted to the Credit Union by a third-party broker, your name, Mr. La ***** *****, was noted as the primary borrower, and your son, Mr. Antonio *****, was listed as the joint borrower for the loan. The credit application was approved on this basis, and your signature on the loan documents verifies your acknowledgement as the primary borrower for the vehicle loan.

As of the date of this correspondence, I understand that you have spoken with Denise Thomas, Director of Consumer Underwriting, to discuss submitting a new loan application to modify the names for the primary and joint borrowers for the vehicle loan account. We are working with your son, Antonio *****, to complete the new loan application. If you require further information relating to this matter, please contact Ms. Thomas at 310.643.2566.

Mr. *****, thank you for sharing your concern. We are ready to assist you with any additional questions you many have.


Joseph Whitaker
Executive Vice President and
Chief Operating Officer


Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
At first I was told the names could be switched on this account if my son submitted a loan application. Later I was told I also needed to submit a loan application which I couldn't do because the people im being put in touch with now dont know our situation and says it cant be done because my son isn't considered a member, now they want him to put in more applications to different people. I did not knowingly acknowledge or agree to being a primary on a loan of a vehicle that isnt mine. It appears we're being bounced around from person to person over the the phone and it seems like a run around situation now. Im right back where I started.

Final Business Response
January 28, 2015

La Monte *****
4169 N. 82nd Street
Milwaukee, WI XXXXX

Dear Mr. *****:

Thank you for your follow-up contact with the Better Business Bureau (BBB) regarding your initial complaint with Kinecta Federal Credit Union on December 29, 2014.

The rebuttal received from the BBB on January 26, 2015 asserts that your request to have your son, Mr. Antonio *****, listed as the primary borrower for the vehicle loan on a 2012 Chevrolet Impala has not been completed. Additionally, you note your dissatisfaction that your son, Mr. Antonio ***** is required to be a member of the Credit Union to complete the loan application to refinance his vehicle loan.

When we received your rebuttal to our initial response, we reviewed the matter again. I am assured that the matter is now resolved to your satisfaction. Denise Thomas, Director of Consumer Underwriting, has contacted you to inform you that Mr. Antonio ***** now is noted as the primary borrower for the vehicle loan, and you are listed as the joint borrower. Also, Mr. Antonio ***** now is a member of Kinecta Federal Credit Union, as required by our membership policy when new loan accounts are opened. Last, Kinecta has honored the previous interest rate of 4.49% for the vehicle loan for the 2012 Chevrolet Impala.

Mr. *****, I apologize for any frustration you encountered regarding this loan. If you have additional questions or need more information, please do not hesitate to contact Ms. Thomas at 310.643.2566.



****** ********
Executive Vice President and
Chief Operating Officer


Final Consumer Response
(The consumer indicated he/she ACCEPTED the response from the business.)
Yes, I accept this resolution as the company stated above, which is what i requested. Id like to thank the Better Business Bureau for helping me resolve this issue and Kinecta Federal Credit Union for their cooperation.

Thank You Again!
******* *****

01/20/2016Billing / Collection Issues
01/13/2016Billing / Collection Issues
07/01/2016Advertising / Sales Issues | Read Complaint Details
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Complaint
During the process of applying for a refinance of my current mortgage, Kinecta employees mislead me for months in a variety of ways.
Approximately December 11, 2015 I began the process of refinancing my rental home with Kinecta. Because I have a large amount of equity in the home ( I owe $38,677 and the home appraised at $840,000) I also wanted to take out some cash. In one of our first conversations, I explained to Galen Mixer that my name was on several mortgages and deeds. After I submitted my tax returns and pay stubs in December, Galen assured me that I would have no problem qualifing for the loan. During the entire month of January 2016, I was asked for more and more documents with no explanation as to why. On Jan. 29, 2016 I received a new electronic Rate Lock Agreement stating that my amount was $100,000 with the interest rate and points unchanged. I thought it was a mistake and contacted Galen immediately. He said he was working with the underwriters to increase the amount. When I received another Rate Lock agreement on Feb. 5 with the same $100,000 I asked to speak to a supervisor. I spoke to ****** *** on Feb. 7, and he said that if I could document that my boyfriend pays half of our mortage, I would qualify for the original amount. After sending many more documents, on Feb. 19 I received a Rate Lock with the loan at $250.000 and the same interest and points. Galen assured me the loan would fund the following week. I was beyond shocked when on March 2 I received a Loan Estimate with the amount at $90,000 the interest at 3.875%. I emailed ****** *** but received an out-of-office reply with Erik Jenner as the contact. I forwarded my email to him. On March 3 he replied that he would look into it. On March 4 he emailed me a reply and we spoke. His explanation about the change in the cost of the loan was
" The pricing was impacted due to the significant loan amount decrease or more than a 50K difference requiring a Loan Level Pricing adjustment for the loan size- this is the additional 1.500pts or $1,350 in dollars that you had seen on the re-disclosure."
In complete disbelief, I emailed ****** *** but received an out-of-office reply, with **** ****** as the interim contact. I forwarded my email to him. On March 3 he replied that he would look into it. On March 4 he emailed me a reply and we spoke. His explanation about the change in the cost of the loan was

" The pricing was impacted due to the significant loan amount decrease or more than a 50K difference requiring a Loan Level Pricing adjustment for the loan size- this is the additional 1.500pts or $1,350 in dollars that you had seen on the re-disclosure."

Clearly this statement is false. My loan amount has increased and decreased based on whatever factor Kinecta decided to use at the moment. I never knew what the factors were, but the interest rate and points did not change until this last document. I spoke to Erik Jenner about this discrepancy on March 7 and he said he would look into it. I have not heard back from him regarding the falseness of his statement.

I am beyond frustrated by the lack of transparency with my loan application. It has cost my mother, my boyfriend and me countless hours of work to comply with "conditions" that were not explained, only to end up with a Loan Estimate that serves no purpose. My situation cannot be unique to the point where I could not have been told in December 2015 what factors would be considered in my "qualifications." Why was it a secret until my February and March conversations with supervisors what was making my loan complicated?

Desired Settlement
I would like the loan I originally applied for ($250,000) at the same or better rate without having to "reapply."

Business Response
We received from the BBB your letter expressing dissatisfaction with service you received from Kinecta when applying to refinance your mortgage. We have four pillars of member service at Kinecta: Listen and Ask the Right Questions, Make it Easy, Do it Right, and Build Relationships. I am sorry that we have not lived up to those pillars of service for you.

We researched the issue, and I understand that **** ********* Director of Retail Residential Mortgage, has talked with you and explained the circumstances of what triggered the multiple disclosures, as well as why we had to counter your initial loan request with a lower loan amount. We apologize for the frustration this has caused you.

We appreciate the opportunity to address your questions again. Unfortunately, we are unable to accommodate your request for the original loan amount without the need to reapply. John ******** has provided several options for you to reapply for a mortgage with Kinecta. Please contact him directly at (XXX) XXX-XXXX with any questions you may have.



****** ********
Executive Vice President and Chief Operating Officer


Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
An organization that has been nothing but deceitful and misleading should not think that my "reapplying" for the loan would be a viable option for me. I spent months being placated and misinformed. I have no intention of "reapplying" for a loan with the institution that lacked transparency, and I am going to try to alert others to these deceptive practices.

Final Business Response
BBB case number: XXXXXX

Dear Ms. *****:

We received from the BBB your second letter regarding the process of refinancing your mortgage.

As stated in our first response, we researched the issue and **** ********* Director of Retail Residential Mortgage, has talked with you to explain the entire process, including why we are unable to accommodate your request for the original loan amount without the need to reapply.

**** ******** is available to meet with you should you decide to move forward with a new application for a mortgage with Kinecta. Please contact him directly at (XXX) XXX-XXXX with any questions you may have.



****** ********
Executive Vice President and Chief Operating Office


Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Mr. Whitaker and Mr. Rissling's "resolution" of having me reapply with Kinecta for a loan makes no sense to me. I was deceived and mislead during the three months of my loan application process. Why would I start over again with the same institution that has been so dishonest with me? I would be better off going to one of the notorious "pay day" loan companies to apply for a loan. At least with them, I would understand who I was dealing with up front. Somehow, I expected more "truth in lending" from a credit union. I was sadly mistaken.

06/27/2016Problems with Product / Service | Read Complaint Details
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Complaint
Restricted prepaid debit card while card in use.
Allowed card to be loaded with funds while restricted.
Frivolous charges without being advised.
5/25/16 I loaded $600 onto prepaid debit card XXXXXXXXXXXXXXXX. This card expired 5/31/16. I was not told the card was restricted. I could not use the card or retrieve my money from the card. Representatives at the Nix location I visited attempted to help by calling the toll free number. Finally, I received a text indicating that my address had been updated. I never received any information, verbal or text, indicating that there was a charge of $10.95 for a replacement card. I never asked for a replacement card. I was also charged $2.50 each for about 3 calls in attempts to resolve this matter.

Desired Settlement
I am requesting the following:

refund of $10.95
refund of $7.50 in customer service calls after removing my funds from the card

Refunds be drawn on paper check to avoid additional fees for use of card

Business relationship to be severed with company.

Business Response
June 13, 2016

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

BBB case number: XXXXXX

Dear Ms. ******:

We received from the BBB your letter expressing dissatisfaction with service you received while using our prepaid card.

I am happy to learn that you have talked with Silvio Estrada who provided you an explanation of what occurred. He has let you know that we have credited you for the card fee since we didn't notify you that you were going to be charged for a new card. We also provided you with credit for the four times you called the 800 number to resolve this issue.

We do hope that you choose us in the future to serve your financial needs. Should you have questions or need further assistance, please contact Silvio directly at XXX-XXX-XXXX.



**** *******
Chief Administrative Officer

05/02/2016Problems with Product / Service | Read Complaint Details
X

Complaint
The Customer Service 800 phone number, Nobody ever answers that number, and never call back
I have been trying now for 2 weeks to get through to the customer service number to speak to some one. They never answer, and you are on hold for at least 15 minutes before there is an option to be called back.

When you leave your number you still don't get a call back. I have over 10 thousand dollars in there and can never reach anyone when I need them.

Desired Settlement
I travel abroad alot for work. I need to be able to speak to someone regarding issues that I may be having with my acccount.

Business Response
BBB case number: XXXXXX

Dear Mr. ********:

We received your complaint via the Better Business Bureau (BBB) regarding the extended wait time when calling our Member Contact Center. At Kinecta, we have four pillars of member service: Listen and Ask the Right Questions, Make it Easy, Do it Right, and Build Relationships. I am distressed to learn that your experience did not meet these pillars of service.

I understand that ***** ******* Team Manager in our Member Contact Center, spoke with you on the phone today and provided you with her direct contact information so that you can easily reach her when you need to.

Mr. ********, we appreciate your membership with Kinecta, and apologize for the frustration this has caused you. We certainly seek to provide service that you can trust and that delivers on the pillars of member service. Should you need further assistance, please call ***** at the number she provided to you.




****** ********
Executive Vice President and Chief Operating Officer

01/20/2015Billing / Collection Issues | Read Complaint Details
X

Complaint
Threatening and harassing calls 5-10 times daily for unsubstantiated penalties concerning loan
Kinecta Credit Union is harassing me with calls claiming I owe them for late payment fees and penalties for lapse of insurance during the 72 months I made payments. I have documentation that I made ALL 72 payments in full with interest at 7.74 % and also from my insurance provider that there was NEVER a lapse in insurance, that the truck has always been covered since I purchased the vehicle. They are calling threatening to repossess the truck and are holding my Title until I pay them. I have sent a letter of dispute to Kinecta. I have filed complaint with BBC, FTC and both Nebraska and California State's AG. Yes a contract was signed and fulfilled on my behalf. The product is a 2008 GMC Sierra purchased in May of 2008. It is their claim that I owe late fees and penalties in the amount of $9061. I am not a shareholder and I do not have a Foreign address. I have spoken to the attorneys at Fait Debt Collections at XXX-XXX-XXXX. They are encouraging me to sue for damages. Please help. Please advise.

Desired Settlement
Stop the calls and mail my Title. Truck has been paid in full.

Business Response
September 3, 2014

***** ********
*** ***** ******* *******
********** NE XXXXX

Dear Mr. ********:

Thank you for your letter to the Better Business Bureau (BBB) to discuss the challenges you had with a Collateral Protection Insurance (CPI) placed on your auto loan account with Kinecta Federal Credit Union. The complaint received from the BBB asserts that you have received harassing phone calls relating to funds owed pertaining to the forced placed CPI. I regret the frustration and confusion this matter has caused you.

When I received your letter from the BBB, I immediately requested an investigation. Credit Union records indicate that your 2008 GMC Sierra was purchased through Kinecta in April 2008; however, we did not receive evidence of insurance at that time. We reached out to you by letter and phone between May and August 2008, and did not get a response. After we did not hear back from you, CPI in the amount of $6,159 was added to your account through an automated process.

After the CPI was added to your auto loan you provided automobile insurance, and a partial refund of $4,619 was returned to your account. Additionally, automobile insurance could not be verified between May 1-July 31, 2008, and an outstanding balance of $1,540 remained on your account.

There was an additional instance where we reached out to you by letter to inform you that CPI would be force placed on your account in February 2009. Several phone calls were made to discuss this matter, and we did not receive a response. I regret that our repeated calls for payment were deemed as harassment. Again, after we did not hear from you by letter or phone, CPI in the amount of $5,853 was added to your account for the lapse in vehicle insurance from November 2008-November 2009. A partial refund in the amount of $2,926 was returned to your account as evidence of insurance was provided for April 2009-November 2009. An additional refund of $1,540 was applied to your account on August 26 due to a correction made by State National Insurance.

As of the date of the correspondence, the outstanding balance that is owed for previous force placed CPI and fees is $7,095.47. The current outstanding balance is valid until September 12, and then additional interest fees will begin to accrue. You may pay the outstanding balance in the amount of $592.56 until the amount is paid in full.

Kinecta regrets any confusion and frustration this matter has caused you. If we can be of further assistance, please do not hesitate to contact ******* ****** Vice President of Loan Servicing, 310.643.2290.



****** ** ********
Chief Operating Officer and
Executive Vice President






Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
You were sent a letter by my insurance provider that the GMC Sierra was covered from the day it was purchased through this current day 9-5-2014. No amount ($6159) should've ever been added to the account in the first place. That being said. My provider is willing to stand behind me in the court of law stating the vehicle NEVER lacked coverage. Thus...any charges and fees are BOGUS and fraudulent. As well as the salesperson who originally sold me the vehicle and removed the original agreement from the truck. Signed me up for a savings account without my knowledge and outright lied to me. You were sent EVERY payment for this vehicle...ALL 72 payments. It is paid in FULL. I will NOT and do NOT have plans to send a payment of any type and expect my Title to be mailed immediatley. You are crooked business people. I will continue my cause to expose you through every outlet, media, internet and word-of-mouth and consumer protection agencies. Harrassing calls included your representatives calling threatenting repossesion because of these fraudulent and dishonest fees and charges is illegal. You know it, I know it and my attorney certainly knows it.

Digusted,

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

Final Business Response
January 16, 2015


***** ********
*************************************** XXXXX


Dear Mr. ********:

Thank you again for your correspondence to the Better Business Bureau (BBB) addressing your concern with the addition of Collateral Protection Insurance (CPI) to your auto loan account with Kinecta Federal Credit Union. The Credit Union regrets for the frustrations you have encountered relating to this matter.

When this matter was last reviewed in October 2014, Kinecta staff noted the receipt of correspondence from Geico Insurance that acknowledged a lapse in auto insurance coverage between November 2008 and April 2009. Please find the correspondence from Geico Insurance enclosed.

Kinecta has addressed correspondence from several entities and made several attempts to discuss this matter with you. Unfortunately, you have not responded to our attempts to make contact, and we still have not received the necessary information to verify the existence of auto insurance for the time lapse in question.

Due to the lapse of auto insurance coverage, the Credit Union will not remove the outstanding balance of $2,927 for the addition of CPI, nor will the auto title be released. If you have documentation verifying that auto loan insurance was in place between November 2008 and April 2009, we would respectfully ask that you provide it to us so that we may immediately adjust your account.

I have identified *************, Vice President of Loan Servicing, as the best person for you to discuss your concern with, and she can be reached at ************, or by email at *************@Kinecta.org.


I apologize for the confusion and frustration you have experienced. Ms. ***** is standing by to address any additional concerns you may have relating to this matter.

***************
Chief Operating Officer &
Executive Vice President


Enclosures

Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Mr. Whitaker,

I sent documentation on more than one occasion from GEICO (my insurance provider)that coverage NEVER lapsed! Whoever the representatives are that made 10 or more different calls per day need to be tracked down and questioned. These representatives calling on behalf of Kinecta, whoever they may be, are leaving toll-free numbers, that when called are "no longer in service"... I made numerous attempts to call individuals back with no success. I have 15 different names of people making harassing collection calls. Never once was there an individual to work with IN PERSON to try and resolve this deceitful and dishonest business practice. I will contact my insurance provider once again and make an attempt to send the needed documentation you are requested but I need assurances from you that this will get to the correct individual and be given highest priority on your end. Until I hear from you with a name, a solid contact number and extension, a fax number and address, I will not be fileding any calls coming from Kinecta.

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

Complaint Response Date bumped because: Holiday

01/05/2015Billing / Collection Issues | Read Complaint Details
X

Complaint
There was a billing mistake admitted by Kinecta to my credit card.done while i was on vacation they knew this since then they sent it to collections.
they admitted the fault was theirs after I returned from trip. On the oct 24th manager I spoke with said they would fix the problem by mon.27th oct. the latest tue 28th Oct. and he never called back when I called mon.to see how they were going to resolve mistake they made. Instead the Phone rep says she has no notes I ask to speak to mngr.Shawn he takes me in circles. Im surprised I've been with this credit union over 30 yrs. since they were Hughes space and satellite-The Paymaster.I call their Kentucky credit card dept.headquarters they knew exactly what I was talking about they promised to call me back the next day. That did not happen they said mngr.'s called in sick another said it was his day off 29th Oct. I remembered the other mngr who admitted it was
kinecta fault a different one who promised that he would straighten out their mess. When I tried to get ahold of him with operator code they sent me straight to collections to put their mistake back on me .and when I asked to be transferred to correct person the one who tried to fix kinectas mistake they would just hang up twice I had to repeat process just to hear "Im transferring call now."And click. Im fed up trying I know they have sent a messages that follow whenever I I.D. my account this is from a source in their org.

Desired Settlement
I want them to fix the mistake they made because a penalty was called the ball was in their court now they're still playing dirty
I need an advocate to help me see what they come up with thats satisfactory.

Business Response
November 10, 2014

**** *****
**** ****** Dr.
******** KS XXXXX

Dear Mr. *****:

I am writing you to follow-up on your recent inquiry with the Better Business Bureau (BBB) regarding your experience at Kinecta Federal Credit Union. As I understand it, your complaint is that your account was referred to collections because it had exceeded the maximum credit limit. When we received notice of your case, I requested an immediate investigation to determine the circumstances surrounding your concern, and the results from that investigation are summarized below.

On September 26th, our anti-fraud monitoring system determined that your Kinecta Platinum MasterCard was subject to a possible compromise.

To ensure your financial protection, a replacement credit card was issued to you on September 30. Meanwhile, your original card remained open for 15 days to allow you time to receive and activate the new card.

Since both the old and new card were still open, additional charges were incurred on the old card, causing your total balance to exceed your credit limit by $361.

As a result, your account was automatically referred to our internal collections team to request a payment.

I sincerely apologize for this situation. While referring over limit accounts for payment is our standard procedure, our controls normally prevent accounts from going over their limit. Under normal circumstances, our systems would decline any transactions that would cause the account to exceed its credit line, but in this case, our system limitations didn't appropriately handle the situation to enforce the credit limit across both accounts. We are working to address this system limitation for the future.

In addition, I can clearly see that we dropped the ball in proactively communicating with you regarding status of your inquiry. I apologize for the level of service you received, and we are following up with our credit card service department to address this issue. In the meantime, let me assure you that your account has not been referred to an outside collections agency or credit bureau, no additional fees were charged to your account, and your credit has not been negatively impacted by this situation.

Mr. *****, thank you for sharing your concern with us. If you have questions or concerns related to this matter, please do not hesitate to contact ***** *********** First Vice President of Payment Systems, at 310.643.2233.


****** ********
Executive Vice President and
Chief Operating Officer

Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
You know the apology is not sufficient Kinecta admitted that it had indeed made a mistake and would fix it it this never happened.
kinecta issued me a credit card with $500. thats you not me!I went on vacation with a credit card that had $500.00 credit on it you caused me great financial hardship by cancelling my card and then sending the balance to collections now Ive contacted the BBB to finally get a response from you instead of the run around dropping my calls and promises so how do you propose to fix my situation.

Final Business Response
December 2, 2014

**** *****
**** ****** Dr.
******** KS XXXXX

Dear Mr. *****:

Thank you for your follow-up letter to the Better Business Bureau (BBB) regarding your initial complaint with Kinecta Federal Credit Union on October 31, 2014. The rebuttal received from the BBB on November 25, 2014 asserts that you were not satisfied with the apology and proposed resolution provided by the Credit Union.

Upon receipt of the rebuttal to the response sent by Kinecta to the BBB on November 10, 2014, our staff reached out to you to discuss your concerns. I understand that you spoke with Mr. ***** *********** First Vice President of Payment Systems, and conveyed your dissatisfaction with the response from Kinecta. During this conversation, you requested that we increase the limit on your credit card from $500 to $1000 and indicated that this action would resolve the complaint to your satisfaction. As previously communicated to you in a follow-up phone call, we have processed the credit limit increase, and your new $1000 credit limit has already taken effect.

Again, I would like to apologize for the previous level of service you experienced and the frustration this has caused you. We have counseled our staff to ensure this matter does not recur.

Mr. *****, thank you for your membership, and if you have questions related to this matter or any questions about your membership, please do not hesitate to contact Mr. ********** at 310.643.2233.


****** ********
Executive Vice President and
Chief Operating Officer

Page 1 of 4

Industry Comparison| Chart

Credit Unions

Additional Information

top
Business started: 08/26/1936
Type of Entity

Corporation

Incorporated: May 1987, CA

Business Management
Principal: Marsha Mathias (Vice President)
Contact Information
Keith Sultemeier (CEO)
Number of Employees

1

Business Category

Credit Unions


Customer Review Rating plus BBB Rating Summary

Kinecta Federal Credit Union has received 3.5 out of 5 stars based on 2 Customer Reviews and a BBB Rating of A.

BBB Customer Review Rating plus BBB Rating Overview

Map & Directions

Map & Directions

Address for Kinecta Federal Credit Union

1440 Rosecrans Avenue

Manhattan Beach, CA 90266

To | From

LocationsX

1 Locations

  • 1440 Rosecrans Avenue 

    Manhattan Beach, CA 90266

Industry Comparison ChartX

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*Kinecta Federal Credit Union is in this range.

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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
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Neutral Review 3 points per review
Negative Review 1 point per review

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BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

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