Complaints

This profile includes complaints for Southwest Airlines Federal Credit Union's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  Southwest Airlines Federal Credit Union

  2430 Shorecrest Dr Dallas, TX 75235-1806

• 

  Southwest Airlines Federal Credit Union

  PO Box 35708 Dallas, TX 75235-0708

The complaint text that is displayed might not represent all complaints filed with BBB. 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.

• Initial Complaint

  Date:06/21/2025

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  On June 12, 2025, I contacted Southwest Airlines Federal Credit Union (SWACU) and spoke with ***** *****, the Collections Manager, regarding redeeming my recently repossessed vehicle. I was explicitly told that I could redeem the vehicle by wiring $7,944. Based on that instruction, I immediately initiated a wire transfer through **********After the payment was sent and received, I called ***** to confirm. At that point, I was told the original information was incorrect and that I would now need to pay off the entire loan balance of over $24,000 in order to retrieve my car. This sudden change in terms occurred after the money was already in their account.Later, Mr. ***** contacted me again stating that they would still release the vehicle if I provided proof of residency. However, by then I had already purchased a new vehicle and no longer wished to redeem the repossessed one. I formally requested a refund, but ***** refused, despite the fact that no goods or services were provided in exchange for the funds.I have a recorded call in which Mr. ***** admits to originally stating that $7,944 would fully redeem the vehicle. I also submitted a wire recall request through *********, which ***** declined. At this point, I am seeking a full refund of the $7,944 due to clear misrepresentation and deceptive business practices.

  Business Response

  Date: 06/25/2025

  Thank you for your recent notification regarding a complaint
  received from our member David Olivas. 
  Southwest Airlines Federal Credit Union takes these notifications very
  seriously and as you will see from the information provided Mr. Olivas claims are
  false.

   

  On 6/11/2025 Mr. Olivas’s vehicle was repossessed due to him
  being 269 days delinquent on his auto loan.

  
  On 6/12/2025 Mr. Olivas called in blaming his ex-boyfriend
  for not paying the loan, and he claimed he never opened the delinquent notices
  that were mailed to his house.  The
  collector advised that the full delinquent amount plus repossession fees and
  verification of residency would be required to redeem the vehicle.  When the collector discussed the situation
  with the collection manager, the manager stated that due to the length of
  delinquency, that the full loan balance would need to be made.  By this time Mr. Olivas had already wired the
  $7,945.  The collection manager made an exception,
  and Mr. Olivas was notified that the credit union would except the $7,945 plus
  proof of residency since the vehicle was picked up at a different address on
  file. 

  
  On 6/17/2025 the collection manager received a voicemail
  from Mr. Olivas and returned his call. 
  Mr. Olivas asked what was going on with his account.  The collection manager said that the Team
  Lead should have contacted him regarding the redemption and that we will accept
  $7,945 with proof of residency.  During
  the conversation with the Team Leam, Mr. Olivas stated that he had received
  another auto loan and did not need the repossessed vehicle any longer.  The collection manager asked Mr. Olivas about
  this new vehicle, and he stated that the loan fell through, and he did not
  receive the loan.  He also stated that he
  lost his job and is no longer working and the collection manger told him that
  the credit union would work with on getting a “skip-a-payment” so he would not
  be due until August 2025.
  Management of the credit union have listened to the recorded
  phone call with Mr. Olivas and the collection manager which Mr. Olivas states
  that he no longer is employed and that he did not purchase another
  vehicle.  The collection manager stated
  that all Mr. Olivas needs to provide is proof of residency to be able to pick
  up the vehicle, which Mr. Olivas agreed to provide. 

  Thank you, 

  Southwest Airlines Federal Credit Union

• Initial Complaint

  Date:02/11/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Approximately two months ago, I discovered a discrepancy in my car payment amount while reviewing my credit report. It came to my attention that Southwest Airlines Federal Credit Union had increased my principal by an additional $400 due to insufficient coverage on my ****************** 2021. Upon contacting SWACU, they clarified that **************** was added to compensate for the lack of full coverage on my Progressive account. As a result, my monthly car payment doubled from around $400 to nearly $800, impacting my credit report and loan-to-value ratio as I am currently in the process of purchasing a home. Instead of notifying customers in advance, ***** automatically included ************* to cover the shortfall in coverage. However, this ************* is not as straightforward as it seems, as it essentially functions as a penalty for not having full coverage. Consequently, I am left with a remaining balance of $2,211.23 even after making double payments alongside ****************. This situation raises concerns of legality, unethical practices, and deliberate confusion aimed at extracting additional funds from customers. It is imperative that we address this matter through legal channels and persist until a resolution is reached.

  Business Response

  Date: 03/20/2025

  Southwest Airlines Federal Credit Union takes these notifications very seriously and as you will see from the information provided Mr. *********** claims are false.

  When Mr. ********* received his auto loan with the credit union, he signed the loan agreement which stated that the debtor is required to: (i) keep the Collateral insured against damage in the amount equal to the debtors indebtedness to the creditor and if the debtor fails to meet this requirement, the creditor may obtain Collateral protection insurance on behalf of the debtor at the debtors expense.(see attached).  ****************** received in his loan packet a Proof of Insurance form that states Should you fail to maintain the required insurance throughout the life of the loan, the lender may (but shall not be required to and without prejudice to its rights if it does not) purchase a policy for its own protection and pass the cost of the policy on to you, the borrower.  The lender man, but is not required to, attempt to contract you prior to purchasing the insurance.  The lender may at its option, add the premium to your loan.  This may cause an increase in your regular payment. (see attached)
  When Mr. ********* said that he was never notified that is false. Along with the attached notices that were mailed to Mr. ********** on 11/12/2024 he also called in to ***************** the company that Southwest Airlines FCU uses for their Vehicle Collateral Protection (***), saying he received a notice saying that the cost of his insurance policy he had with Progressive went up to $1700/month the *** said that he can keep the *** on if he wants and that his *** will stay on the loan until he gets full coverage.  Mr. ********* stated that he will shop around to get insurance and call them back when he gets it. On 2/4/25, Mr. ********* made a call to Allied Solutions in which he provided his updated insurance policy that he got that was effective for 2/4/25.

  In closing the credit union has every right to protect their property, and when Mr. ********* let his insurance lapse, the credit union had no other option but to have their property insured and insurance was forced placed.  

  Thank you, 

  Southwest Airlines Federal Credit Union

• Initial Complaint

  Date:08/20/2024

  Type:Billing Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am writing to formally dispute an inaccurate late payment reporting on my credit report. Despite consistently making timely payments on my account, your institution has erroneously reported a late payment, causing significant harm to my credit score and financial standing.I have reviewed my account records and can confirm that I have never missed a payment or made a late payment. I kindly request that you conduct a thorough investigation into this matter and provide evidence supporting the late payment claim. If no such evidence exists, I urge you to immediately correct this error and update my credit report accordingly.

• Initial Complaint

  Date:01/18/2024

  Type:Billing Issues
  Status:

  UnansweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  On July 6, 2022, I received a call from *************************, an employee at Southwest Credit Union, regarding my delinquent account. Despite having updated my contact information and previous email exchanges with them, I hadn't received their emails, which left me confused.I explained my COVID-related financial hardship to ******************, who suggested an emergency loan modification. I promptly applied and copied her on emails to member services for follow-up, but received no response.To my shock, I discovered my account had been closed when I tried to access it later. After contacting ********************* in collections, my message was transferred to member services, but they remained unresponsive.In March 2023, I found a negative credit report entry indicating a charge-off by Southwest Airlines Credit Union, implying negligence and refusal to resolve the issue. Despite my efforts, ************** couldn't explain the oversight, offering no assistance.My financial struggles due to COVID were worsened by Southwest Credit Union's actions, raising concerns about their handling of consumer rights and COVID-related policies.