Complaint My husband was on his father's account to him pay bills before he died, the VA wanted their funds returned. This credit union took $3K from my account This is in regards to an unauthorized reallocation of my funds. I have had an account at Kellogg Community Federal Credit Union (KCFCU) in Battle Creek, Michigan for over twenty years. Twelve years ago my husband (**** ******) joined my account and is secondary on this account. ****'s father (***** ******) had an account at KCFCU as well, where *****'s VA funds were deposited monthly. ***** was very sick and needed help managing his funds. **** joined *****'s account at KCFCU as a member of convenience to reallocate *****'s funds as necessary. Every month **** withdrew around $3000 from *****'s KCFCU account to place in *****'s Fifth 3rd bank checking account. The purpose of this funds transfer was to allow bill payment by check. ***** died December 25, 2015 and the VA deposit had already been submitted and my husband had processed the bills with the funds as usual. The VA requires the return of funds the same month the veteran dies. The VA sent a request to KCFCU for the return of funds deposited for the month of December. *****'s account had less than $1,000, so KCFCU transferred over $3000 from my account to *****'s account to complete the return of funds transaction. I immediately contacted KCFCU, they stated the accounts both had ****'s name on them and were therefore linked. I argued with no avail, that I did not authorize this link of accounts or the transfer. This return of funds request from the VA had only ***** ******'s name and account listed on the return request. This request for return of funds did not list my name, or ****'s name. I contacted the VA, they stated they requested the return of funds from *****'s account and the credit union made the decision to retrieve my money from my account on their own accord. I received a letter from the VA confirming they requested funds from ***** ****** only. This shouldn't be allowed short of a court order. At KCFCU a secondary account holder can't request a loan without the primary account holder's consent. How does it allow KCFCU to transfer from my account if **** was on *****'s account as a convenience account holder? KCFCU told me if **** is on both accounts then the accounts are joined. That is horrible business practice. The money taken from my account was for my college classes. Why should a credit union have the authority to link two accounts without the primary account holder's authorization? Or with any permission This was not a debt in relation to my money. I've been told to apply this expense to ***** ******'s estate settlement. ***** ****** did not have an estate to settle. Please help,
Desired Settlement I want $3,083.25,that was taken on 2/2/15 returned to my account.
Business Response KCFCU is required to comply with the federal regulation which requires the return of the VA Benefits which were deposited via ACH into the father's account on 12/31/2014. On that same date, the deceased's son, who is a joint owner on the account, did access the amount of $3,000 from the account via a cash withdrawal. Unfortunately, the son failed to notify KCFCU that his father had passed away on 12/25/14. Had KCFCU been aware that the father had passed away, we certainly would have reviewed the account at that time and not allowed for the withdrawal of the benefit that they were not entitled to for the month of December.
KCFCU has not violated any regulations or internal policies in recouping the funds to send back to the government. Our account disclosures allow for offset of any negative balance from any account which the member is attached to. The son is joint on both his father's account and his wife's account and therefore KCFCU did access the joint account between the son and his wife to return the benefit that the member was not entitled to.
Complaint The credit union is holding my money and won't let me take it out. I have not authorized this action. This dispute is regarding my checking account. My member number is ******. Around Oct 2013, I noticed that I had payments automatically come out of my checking account that I did not authorize. Upon closer look, I discovered that money had been coming out every 3 months in the amount of approx. $50. each time for magazines which I was not receiving. I sent a letter to the main branch asking them to not let anything come out of my checking account and I had stopped using my debit card. I just wanted my account to be inactive until I could figure out what was going on with it. Then on Feb 10, 2014 I had my tax refund put into my checking account as a direct deposit. The credit union gave me all but $420. and they refuse to give it to me even though my account states that it is in there and it is available. They are saying it is a charged off account. I did not authorize them to keep my money. I should not be responsible for any fees that occurred on my account.
Desired Settlement I want the credit union to send me a check in the amount of $420. and close my account. I do not want to do business with them any longer. Thank you.
Business Response ****** *. ****** *********************** Mar 7 (11 days ago)
Please find Kellogg Community Federal Credit Union's response to Complaint Case Number ******** in the attached document. If you need any further information, feel free to contact me directly.
Thank you for your time, ****** ******
******************************************** March 7, 2014
Attn: BBB Servicing Western Michigan Case # ********
RE: ******* *******
To Whom It May Concern :
We have received and reviewed the complaint that was filed against Kellogg Community Federal Credit Union by Ms. *******. Our response follows.
Ms. *******' account was in a negative balance status oeginning in September 2013 due to several transactions including checks, point-of-sale transactions and automatic payments that cleared the account or attempted to clear the account through December 2013. The $420 that Ms. ******* references in her letter is due to fees related to these transactions.
Ms. ******* slated that she sent a letter about placing a stop on the use of her account. Unfortunately, we have no record of receiving that communication. When Ms. *******' account continued to be negative,. we made several calls to her. We were able to leave messages for her, but never received a call back.
Ms. *******' tax refund was deposited into her account. Upon receipt, the negative balance In the account was paid as were the outstanding fees referenced above that had not been collected, She was authorized to have the remaining funds. We were not aware of any disputes, concerns or issues at that time.
Please do not hesitate to contact me if you have any further questions or concerns. I can be reached at ************.
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