ComplaintsforConnections Credit Union

• Initial Complaint

  08/12/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  In March of 2023 I was charged for a laps of insurance on my truck that connections credit union. Connection charged me $2657 for insurance. The charge was file to cover 12/2022 to 12/2023. Starting issue. They charged me 3 months after they said I lapsed. Then in 5/2023 I paid off the original loan leaving the $2657. The same day I paid off the loan I spoke to an employee who told me that the would submit a claim to have these charges reversed. Being that it was 5-2023 and 6-2023 had not even past yet. The employee said they would get back with me. Two months had past and the $2657 was still on my account. ****** I called. This time I spoke to a very rude customer service specialist. She basically called me a liar and told me unless I showed prof of insurance that they would not reverse any charges.I asked how I am supposed to show prof if the time hasnt even past. She started yelling at me and hung up. I provide ls prof of insurance showing I was covered from 4/2023 to 10/2023. She told me that she was not changing or reversing the charge. She went as far as threatening to repo my truck. I asked to speak with a higher up manager. After trying to resolve this situation I had to make several calls. It took an act of god to get ahold of connections. I finally got so tired of the treatment I was getting I just paid the $2657. Thats when they actually contacted my insurance agent. They provided prof that I was covered from 4/2023 to current. They then refunded me $499 and $506. They said that was a refund for ***** to 10-2023. The problem is the gave me document that showed contradicting information. I asked how the calculated $1700. They said they used the rule of 78. I questioned what charges They said the remaining $1700+ was for the 5 month retired so at first it was 4 month. The it went to 5 months but the balance remained the same. Once again they called my insurance agent and he gave them proof that I was covered from 4-2023 to currant. yet the are refusing to use refund me more. I was emailing the cfo to resolve the issue she stopped responding to my email ls and never would take my phone call. I asked for a copy of my contract. Now they refuse to answer my calls all together. I simply wanted to see my contract. I emailed connections and state national. I asked how they are using the rule of 78 to calculate my insurance charge when there is two issues 1st do they us the rule of 78 to everyone else how lapses. 2nd they are illegally using the rule of 78. **** a federal law that prohibits credit union to us the rule of 78 to loans over ************************************************ at all. .

  Business response

  08/14/2023

  Connections Credit Union, like most other financial institutions, contracts with a third-party vendor to track collateral pledged as security for a loan to ensure the required level of insurance on the collateral is maintained during the term of the loan. In the event the borrowers primary insurance lapses or is insufficient, collateral ******************** (CPI) is added to the loan to protect the lenders interest in the collateral.  *************** considered high risk coverage, can be very expensive. The premiums and rules for any refunds are set by the insurance company,although the ********** of ******* does regulate the maximum rates charged.  Connections Credit Union has no control over the pricing and policies of the insurance company.   More than 98% of all collateralized loans maintain the required level of insurance as agreed to in the loan contract, avoiding this costly addition.

  Business response

  08/14/2023

   

  Follow up,  All CPI policies for a lapse in insurance are issued by the third party insurance company for a 12 month term.  Once documentation is received showing proof of insurance, the information is forwarded to the insurance company.  If the insurance company determines a refund is due, the adjustment amount will be passed on  to the credit union to adjust the member loan.  As mentioned in the first response, Connections Credit Union has no control over the policies of the third party insurance company.  They determine rates as well as methods for calculating refunds.  Connections Credit Union does not use the "rule of 78" for any internal programs and calculations.  Interest charged on a loan is based on the daily outstanding balance.  Members are free and encouraged to pay down their loans as quickly as possible to reduce interest charges.   There are no fees or income derived from collateral protection insurance premiums.  The premium charged to the credit union for the coverge is passed on to the member loan, and any refunds due once satisfactory proof of insurance is provided is fully refunded to the member.  The process is the same for all members.  Connections ** does not (and not allowed) determine who is charged, the premium amount, and any subsequent refund.  The third party insurance company tracks collateral loans for the ** and has an established process to notify  members with lapse in coverage to obtain adequate coverage.  All loan documents are provided to the member at time of loan closing and additional information, in many cases, is also subsequently provided.  The documents have been provided again to the member.

  Customer response

  08/15/2023

  I dont understand why they are not excepting responsibility. I took the loan out with connection credit union. Connections kept $1700 of my money and the email from ********* said that was calculated by using the rule 78. If they kept $1700 then they are using the rule 78. It wasnt until after I inquired about the rule 78 that they said talk to the insurance company. If connections is ethical and only used fair business practices, then where is my money. Ive showed them proof of what laps Im guilty of and that is 3 months. ***************** $2697 you divide that by 12 you get $224.50 x 3= $673.50 is what I should pay. They kept $1700+. Now they dont answer my calls. They have everyone ignore me. If they would just credit me $1100 this would be over. When that took my $1700+ they then use the rule 78. And that is illegal with my type of loan. They can quote their fake policy but do the exact opposite. This company is very shady. Someone need to investigate them. There is a lot of similarities between there operations and the ***** Fargo scam. I am not going to talk to any one else. I got my loan through them. 
  

  value  havent even mentioned the 37 times they charged me a $27 overdraft fees see. Or the multiple times the g  oot a me $30 nsf it had to be 6-7 times. They would put me into the negative by applying this fee. Then they charged me 4 or 5 times in a row. They are up to no good. And the way Im being treated after 

  I paid them over $40,000

  i just want the documents Ive asked for and  my $1100. 

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