ComplaintsforUnited Local Credit Union

• Initial Complaint

  07/13/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Paid off my Car loan with them in 2019. They informed me I had overpaid and they placed the amount in my savings account. A while later (year?) received a notice they were going to start charging $5 a month for a statement of account. I protested as that is something they generate not something I requested. They waived that fee but now I find my savings account is zero balance. Apparently within the last year they initiated an "inactive account fee" of $5 a month. How they can call a savings account with money in it inactive is beyond me especially as they require you to have an account to get a loan. They said they would refund half the amount. I feel the whole amount should be refunded as I. Was not aware of this new fee nor consented to it. If they do not want money just sitting in savings, they should cancel and refund the account, not steal it in small increments. The total is between $50/$60 but I am a Senior citizen and feel myself and no doubt others have been unethically treated.

  

  Business response

  08/08/2022

  Dear ****** *******:

  
  

  ****** ******** (member), called in because she received dormant fees, due to the inactivity in her account.  After Ms. ******** paid her car loan off, there had been no further activity since November 2019.  According to California State law unclaimed property of any financial Asset, for a specified period of 3 years, must be returned to the owner.  If there is no response from the owner the money is escheated to the State.  As is such, all members are sent an account dormant notification 30 days before the account goes dormant.   

  
  

  United Local Credit Union has an established dormant fee in place of $5 per month.  This fee is listed in the Fee schedule which is disclosed to the member upon opening of the account.  In addition, the fee is explained in the notification sent to member 30 days before the account goes dormant. The fee was established to assist with time and expenses related to the regulations governing inactive accounts. 

  
  

  Ms. ******** acknowledged that she had received the dormant notification as well as her regular quarterly statements. The total amount in Ms. ********'s account was $60 before the balance was reduced to zero due to dormant fees.  After speaking to Ms. ********, management extended a courtesy reimbursement of $35, closed the account (as per member) and mailed the check out on July 12, 2022.

  
  

  In regards to the $3 statement fee.  This was implemented to off-set the increased cost of postage and mailing fees.  Since United Local Credit Union has established electronic services such as on-line banking and a banking app, members have been encouraged to go paperless.  With that being said, management understands that not all members have access to a computer or smart phone and/or just don't feel comfortable with electronic banking.  As is such, members have been opted out of the $3 statement fee upon request.  Ms. ********'s statement fees where reversed and she was opted out of the monthly fee.  

  
  

  Please feel free to reach out to me with any questions or concerns.  I can be reached at ###-###-#### Ext. *** or by email at ********@unitedlocal.org.

  
  

  Sincerely,

  ******** *********       

  President/CEO

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