ComplaintsforLiberty Bank for Savings

• Initial Complaint

  02/04/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  On August 2022, I went to Liberty Bank for Savings to open a savings account. I was told the requirements to open an account was $500 minimum deposit. I told the banking representative that I had just moved to *******, ****** was having my employer direct deposit my work pay into another bank account & that I did not have the complete $500 at the time of opening the bank account with Liberty Bank. The banking representative told me that it would fine & that all I need to do is present a check from the other bank for $500 & by the time the Liberty Bank completes opening my account (some days) it will give my direct deposit enough time to clear in my other bank. However that is not what Liberty Bank of Savings did, instead they took my check & tried to cash it that same day. When my other bank got the notification for the check they called ****** called Liberty Bank for Savings and ask them why they did that when they specifically told me they would not be trying to cash this check until some days have passed while they are doing their review of opening my savings account. After speaking to the Liberty Bank for Savings banker who opened my account I got frustrated and decided that I no longer wanted to continue opening an account with Liberty Bank for Savings, I told the banker & told her to cancel my savings account application with them. She apologized & told me that they can fix the situation but I said no its fine I do not want an account with them anymore especially if they were not complete honest in telling me how their opening account procedures worked. After telling the banker at Liberty Bank for Savings to close my account & any other files they have on me the banker told me she will do that. However some months later I found out that Liberty Bank for Savings had spitefully put my name in Chexsystems stating that I had committed bank fraud. I called Liberty Bank for Savings to get an understanding of why they did this and no one has yet to call me back.

  Business response

  02/06/2023

  To Whom it May ********************************** came into our bank on 8/5/22 to open a Passbook Savings account with a $500 opening deposit.  In January 2023, we received a notification from ChexSystems that ****************** had filed a dispute (as is his right), stating that we had reported fraud.  Below is the response which was sent to ChexSystems Consumer Relations on January 17th via Fax to the attention of the case worker, ******.  I include this because it best describes our account of the situation.  Our assumption is that his dispute filing with ChexSystems should result in an accurate reporting on his record.  As you will see, there is nothing in our response to ChexSystems which indicates that ****************** attempted to commit fraud.
  
  One more note you will note that our response to ChexSystems refers to customer as ********************.  His full name for his drivers license is ************************************** *******.
  

  --------------------------- 

  January 17, 2023
  
  ChexSystems Consumer Relations
  PO Box 583399
  *********** ** 55458
  Attn: Vishal
  
  Re: CID 24308935
  
  
  Vishal
  
  ******************** came into our *********** Branch to open an account.  He had cash on him for the opening deposit, but not enough and was told that the minimum to open a savings account was $500.
  
  He left and went to his car to look for a check.  When he returned, he said he would have his bank send the funds electronically via ACH transfer.

  
  
  We advised him that we would actually need a physical check which he subsequently presented to us for his opening deposit.

  At no time was he told that we would hold that check. This would not abide by our policies.  What we did tell him was that as a new customer, the funds would not be available for him to withdraw for the amount of days set forth by our Funds Availability Policy.

  
  
  The check he used for his deposit was returned NSF. When ******************** was advised of this fact, he made the decision to not open/maintain that savings account at Liberty Bank for Savings.

  
  
  As an aside, our banker had also sent him a thank you note after he opened the account, and that was returned back to us for a bad address.
  
  

  Sincerely,
  
  
  
  *************************
  Senior Vice President
  Liberty Bank for Savings

   

  Customer response

  02/09/2023

   
  Complaint: 19334231
  
  I am rejecting this response because: on my chexsystems report it states that liberty bank for savings closed the account due to fraud, so that doesnt correspond to the response given in this complaint 
  
  Sincerely,
  
  *****************************

  Business response

  02/13/2023

  He is entitled to his opinion, as he wishes, however, if not by law, it is commonly understood that presenting a check (a contract to pay) that is no good is fraud. Further as noted, we sent him a welcome letter which was returned with an unknown addressee designation. As you might guess, that as a bank we see attempts on a regular basis to gain from less than factual information. What would you call it? Questionable? Suspicious?  attempted fraud? Fraud?  I don't think matters in what is the point of this complaint being discussed here, hence it does not have bearing to quibble about a term. And finally, as a matter of policy all employees are instructed that all work presented on a given day must be processed on that day. There is no such thing as we will hold a check, and wait for it to clear. You can't run a bank that way, it is not acceptable to regulators. This has been true in my entire 50 year career at the bank Does anything more need to be said?ell us why here...

  Customer response

  02/16/2023

   
  Complaint: 19334231
  
  I am rejecting this response because: this bank's inconsistencies, in your previous message you *** stated that you did not tell chexsystems that this account was reported due to fraud or anything in that nature but instead for NSF but now in this your response you are saying that I presented a bad check and insinuating it was an attempt at fraud; my question to you is which is it? Because you are saying two different things on these responses with BBB but your bank clearly stated fraud to Chexsystems. I do not accept your response because I know everything that happened in this event very clearly. I would like for your bank to pull up the phone call recording between me and your representative the day she called me and I told her to close this account. That way the truth can be exposed. I asked to close this account, your bank did not make that decision, I the consumer made the decision to close the account and made the request to the representative and I clearly stated my reasons on the phone with her and I stated it hear again on my complaint.
  I do not understand why would your bank send me a welcome letter if I requested to close this account almost immediately after everything I experienced with your bank.After I requested to end my relationship with your bank why do you feel the need to start sending me unwanted mail? I am requesting a thorough investigation into this matter because I know what happened and your bank is causing unnecessary financial hardship to me due to your incorrect reporting of me into chexsystems.
  
  Sincerely,
  
  *****************************

• Initial Complaint

  02/08/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  They are way behind on sending coupons out for the mortgages so when I received my mortgage it was already 10 days late so we sent in the check they said they didnt get it finally when they did get it they said oh dont worry with everythings OK were not gonna file this is late or anything will waive the late fee well now here it is on my credit score just dropped 90 points because it was reported 30 to 90 days late and I had an email from the customer saying that dont worry were getting it resolved were not gonna send it in its not gonna go to against your credit score well here we are it did go against my credit score this bank is awful they bought my mortgage against my wishes I had a different mortgage company that sold it to them they are not up-to-date on technology you cannot pay your mortgage online you got either do it by check or set up a direct deposit with them which I dont want to do but when I send my checks they say oh theyre late because they have nobody that goes to work because theyre still crying about Covid

  Business response

  02/10/2022

  February 10, 2022
  
  Customer Relations Representative
  ********************** of ******* & Northern **, Inc.
  330 *******************, Suite 3120
  *******, ** 60611
  
  RE: BBB Complaint ***************************** ID ********
  
  *************** to complaint #********, dated February 9, 2022 regarding the letter of complaint received by the BBB from ***************************** concerning his mortgage with Liberty Bank for Savings.
  
  Processing for Mr. ******** December 2021 payment was delayed, as acknowledged last month in response to BBB Complaint # ********.
  
  Additionally, we have advised ***************** that we no longer send out coupons for his mortgage payments (in response to the first sentence of his current complaint), but that he should expect to receive monthly billing statements going forward.
  
  We have confirmed that his payment history for December 2021 was inaccurately reported to the ************************** and upon discovery of this inaccuracy, have taken immediate steps to send a correction to the ************************* which will correct Mr.******** payment history records.
  
  We apologize for the inconvenience this has caused.
  
  
  Sincerely,
  
  
  
  *************************
  SVP Chief Experience Officer

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩