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In The Snake River Region

BBB Accredited Business since

Capital Educators Federal Credit Union

Additional Locations

Phone: (208) 884-0150 Fax: (208) 855-4727 275 S Stratford Dr, Meridian, ID 83642 View Additional Email Addresses http://www.caped.com

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Description

This company provides all types of credit union financial services.

BBB Accreditation

A BBB Accredited Business since

BBB has determined that Capital Educators 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 16 factors. Get the details about the factors considered.

Factors that raised the rating for Capital Educators Federal Credit Union include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 2 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.
  • BBB has sufficient background information on this business.

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Customer Complaints Summary Read complaint details

2 complaints closed with BBB in last 3 years | 2 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 1
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 1
Total Closed Complaints 2

Customer Reviews Summary Read customer reviews

1 Customer Review on Capital Educators Federal Credit Union
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 1
Total Customer Reviews 1

Additional Information

top
BBB file opened: September 14, 1998 Business started: 03/01/1936 Business incorporated: 01/01/1936 in
Business Management
Mr. Todd Erickson, President/CEO Ms. Jessica Bevis, VP Branch Operations Ms. Kathy Palumbo, VP Marketing
Contact Information
Principal: Mr. Todd Erickson, President/CEO
Business Category

CREDIT UNIONS

Hours of Operation
M: 8:30 AM - 5:30 PM
T: 8:30 AM - 5:30 PM
W: 8:30 AM - 5:30 PM
Th: 8:30 AM - 5:30 PM
F: 8:30 AM - 5:30 PM
Drive through is open until 6:30 PM Monday through Friday.
Service Area
This company serves the Treasure Valley area.

Additional Locations

  • 275 S Stratford Dr

    Meridian, ID 83642 (208) 884-0150

  • PO Box 570

    Meridian, ID 83680

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  • Billing or Collection
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  • Guarantee or Warranty

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Complaint Detail(s)

2/5/2014 Billing/Collection Issues | Complaint Details Unavailable
11/1/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: They boast that they have an automatic transfer system that allows for your transactions that overdraft your account to be covered by your savings account. However, this system is convoluted, there is no written policy on how these transfers are processed. These are convoluted banking policies meant to elicit more fees. Their system hides transactions from the ledger and processes them separately so as to max out the number of transfers to cover the balance. This causes the account to use all 6 Federally allotted automatic transfers from savings into checking. Then the courtesy overdraft fees begin to add up. So, your accounts automatically transfer funds into your checking before it has over drafted- using up all of your automatic transfers before they are necessary.When approached about this problem, customer service was sub par. It was explained to me repeatedly how the system works- that, by federal regulation, each account is only allowed 6 automatic transfers. Then courtesy fees have to cover any further transactions. Why funds were transferred before necessary was not addressed directly. They were apologetic for the inconvenience but unwilling to change the system. They said they are working on changing the system but cannot do anything about it at this time. I was denied information on why and how the system processes these automatic transfers as there is no policy or information available to consumers. I am very disappointed. I have been with this credit union for ten years, and I was dismissed in a ten minute conversation. I was given the option to attend board meetings and write to the board members to have my concerns heard. I felt that publicly stating this problem would be of more service. Do not be a financial victim of this credit union's poorly designed system and representatives' lack of concern with the irrational procedure. They were completely misleading about what this automatic transfer system offers. And unable to produce policy about how the system works.

Desired Settlement: Refunded the courtesy pay fees. Produce information on how automatic transfers are processed- why they can, with no reason or policy guidelines, transfer funds repeatedly and unnecessarily from savings. This maxed out those automatic transfers allowing them to begin implementing "courtesy pay" policy and profit from fees on my account.

Business Response:

 

The member called our Contact Center on Thursday, October 17th about 9:15 a.m.   The call was escalated to the Contact Center Manager.  At this time, the Credit Union’s savings accounts are non-transactional accounts and are limited to six automatic transfers per month without a signature from the account holder. The member had reached her maximum allowed transfers and she had made several non-PIN transactions with her debit card.  Once these debit card transactions occur, a hold is placed on the checking account to ensure funds are available for this purchase, since the purchase was approved for the merchant.  Once the transactions post to the checking account the hold is released.  The member also has Courtesy Pay available on her account, so when an additional purchase was made she received our $23 Courtesy Pay Fee to cover this approved purchase since the checking account did not have enough balance available.  A transfer from savings was not available due to the Reg D monthly limit.

 

The Contact Center Manager explained this process to the member and sent her a follow-up email at ***** ***. on ******* **** with more details.  She reviewed the new account disclosures and sent the member a new copy for her files.  She also immediately refunded the member her $23 Courtesy Pay Fee.  She provided the member with some suggestions on using her PIN on purchases if she didn’t want funds to go on hold, as these purchases will immediately post to her account.  She also advised her to login online and do one large transfer to her checking account before making any purchases so the funds would not have to transfer from her savings for each individual transaction and she would not exceed the six transfer limit. 

 

Below are a couple key areas in our disclosures that were reviewed with the member:

 

***Point of Sale (POS) Transactions. You may use your card to pay for purchases at places that have agreed to accept the card. Purchases will be covered by funds deducted from your designated checking account, subject to the limitations described in this Agreement and Disclosure. The available balance in your account may be reduced by the amount of any transaction as soon as the merchant has received authorization from us, even if the documentation evidencing the transaction has not yet been received and processed by us. A merchant is not required to receive prior authorization from us on every transaction. When the documentation has cleared through us, any hold placed on your account for the amount of the purchase or other transactions will be released and your account debited for that amount.

***REGULATION D TRANSFER LIMITS. Reg D imposes a six transfer/withdrawal limit on savings accounts, which includes the following types of transactions: preauthorized or automatic withdrawals; telephone transfers; and transfers initiated by personal computer to another account at the same credit union or to a third party during a calendar month. Transactions not included in the six transfer/withdrawal limit include: Credits to an account; transfers from a credit union account to the same credit union for purposes of repaying loans and associated expenses; and transfers or withdrawals you make in person, through an ATM, by mail, by messenger, or by telephone (which results in the mailing of a check to you). If you request more than six Reg D transfers during a calendar month (including automatic transfers from savings to checking) we are prohibited from making the transfer. Your checking account will be charged overdraft or insufficient fund fees to pay or return items not covered by a transfer of funds or an overdraft plan.

At CapEd we are always looking for ways to improve our processes and service to our members.  We welcome feedback and suggestions on how to accomplish this.  The Contact Center Manager did explain we are actively reviewing how to make changes to our savings accounts and to our authorized hold processes to see where improvements can be made with our core processor.    Please let me know if you need any further information.

Thank You!

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

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