ComplaintsforGale Credit Union

• Initial Complaint

  04/06/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Around September 2019 the credit card I have with gale credit union expired and I received a new card in the mail. gale credit union and visa stated account closed my credit score dropped 120 points they refused to do anything while account and card still open. Same card and account on Feb 25 2022 I Received a new card and same thing happened while I still have card and account my score dropped 90 points 32 month I have never gad a late payment or past due amount I want this fixed asap I am a business owner and swith my accounts over this is affecting me severely.

  Business response

  04/13/2022

  We are aware of the customer who filed the complaint and know the situation well.  In 2018-19, the customer became severely delinquent on loan at Gale Credit Union, over 90 days several times.  Our systems report loan activity under the FCRA rules automatically.  All VISA Credit Card data is not reported under our system but rather is reported by a third party VISA provider who manages the entire VISA credit card process, including reporting to the credit bureaus.  They too are required to follow FCRA rules.

  Credit scores are generated by the credit bureaus and vary by the statistical model the creditor uses.  Each credit bureau, TransUnion, Equifax, and Experian, have many different statistical models to predict different credit outcomes.  Typically, we hear of customers who use Credit Karma for a score, but we are unsure which one this customer uses to get his information.  It is critical for the customer to understand that Gale Credit Union, nor the VISA provider, generates any credit score at all.  We only supply the bureaus with the accurate account activity data.  Each business or vendor that provides credit scores would choose the statistical model they wish and then the credit bureaus would generate a score using that model to give to the customer.  In other words, Gale Credit Union has no ability to set or change a credit score.

  The situation in February 2022 with a card closure was due to the VISA network BIN consolidation project.  VISA consolidated our two BINS down to one BIN which required new cards to be issued under the new BIN and close the old BIN cards.  We did not have a choice in this situation to keep the old BIN cards open.  VISA did not tell us that this consolidation process on the Network side would affect customer credit scores.  Since, we have learned that some statistical models did read the closing/reopening of the customers card as a negative.  However, they have told us the scores should correct themselves after the next statement cycle.  Again, this was out of our control.

  In addition, credit scores are affected by many things and it would be impossible for anyone to point to one item for the true cause of credit score changes.

  We have apologized to customers who called in regards to this BIN consolidation and told them that VISA tells us the scores will rebound after the next statement cycle.  However, this is and was totally out of our control.  

  Gale Credit Union prides ourselves on Amazing Member Service and we are very disappointed in this customer's filing of a complaint without asking us for an explanation.  Most likely, past credit issues caused a more severe reaction to their score, but again, we only report activity, the credit bureaus derive a score.

  ***** ******* ************* **** ****** *****.

  Customer response

  04/15/2022

   I am rejecting this response because we are past the next cycle and it has not improved and visa was not notified because I got ahold of the there is a complaint against them util this is resolved properly I will not agree
  
  

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