Business ProfileforCannon Federal Credit Union

I co-signed a secured Auto loan for my son ****** ******* with Cannon Federal Credit Union on 07/14/2022. My son is in the Air Force and stationed at ****** ***. The amount of the auto loan being financed through CFCU was $69,919. This car was located in Seaside CA being sold by **** ***** *****. CFCU validated the car using a ****** report they ordered on 07/13/2022. The Credit Union (CFCU) required they receive the title/vehicle before the actual funds were wired to the dealership. We were told this is standard practice and shows that both parties are agreeing to purchase and sell. The car loan was for a 2012 Nissan GT-R. CFCU stated they would send the dealership, **** ***** *****, “drafting instructions” through their wire channel as they routinely do. Instead of sending drafting instructions CFCU wired the entire amount of the loan to the sellers Chase business account on 07/14/2022 without regard to adhering to their own requirement of having the title/vehicle in CFCU’s and ****** *******s possession and without our knowledge. On 07/19/2022 we spoke to the seller at **** ***** ***** and determined this was almost certainly a scam as he failed to provide us with shipping updates on the car. The following day my son (******) called CFCU to report this as fraud and was told to come to CFCU the following day. The following day 07/21/2022 ****** met with a loan processor and stated this is fraud. He was told that CFCU could cancel the loan as only drafting instructions were sent. This was verified multiple times during their 6 min conversation. ****** used his phone and recorded the 6 minute conversation he had with CFCU that day. In the following weeks CFCU stated they made an exception to their policy and wired all of the funds to the seller as ****** demanded. In short CFCU stated ****** knew the funds would be directly wired and denied any wrong doing despite hearing the voice recording and not having the title/vehicle as collateral for the secured loan.