ComplaintsforLiberty Federal Credit Union

• Initial Complaint

  10/18/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I have a bank account at Liberty Federal Credit Union and have been dealing with extreme levels of bank negligence. I tried to transfer my $57,000 to another bank because I was moving on August 28th. Liberty never transferred my money and has been running me in circles for months. It is now October 17th, I was yet again guaranteed, with documentation this time, to have the money today, and they STILL say the money is not there and I will not be receiving it. This has been EXTREME negligence that has caused EXTREME harm. My life has legitimately been endangered by having no access to my money. I cannot get my necessary, costly medication that I am required to be on to prevent life threatening seizures. Countless items have gone into collections, my phone has been cut off, and I cannot even buy a pair of work boots to be able to work at my job, all because Liberty is holding every cent of mine hostage. They even stole money from my partner who paid $646 to re-open my account that they opened, closed, and sent off to collections all within 24 hours, lying about the money being needed to re-open the account for the transfer to deposit, then closed the account AGAIN and refused to deposit the transfer STILL. When money was refunded to the closed account from a canceled order, they refused to give me the money that is sitting as a balance in my closed account. I have been told countless times “I can see it’s depositing tomorrow” and it hasn’t. I have been forced to close, reopen, and make new accounts. Fill out paperwork they forgot. I have been told “the last person lied to you, they never transferred the money.” I have been told “the money would have disappeared in a few days when the account permanently closed and the money will be lost forever if it isn’t transferred now.” And then it still wasn’t transferred! ALL phone recordings & documented proof exists in Liberty's system - they refuse to provide from me, intend to hopefully subpoena.

  

  Business response

  10/28/2024

  LFCU records indicate that your checking account became negative on July 1, 2024, and remained so until August 15, 2024, when it was charged off and sent to the credit union’s third-party vendor, ******, for collection.  On October 3, 2024, you paid ****** the outstanding balance owed, LFCU marked the account as paid, and you were able to open a new checking account.  No funds were deposited to, sent to, or were pending to post to your checking account in August, September or October and you were told the same on several occasions when you telephoned the credit union during this time.  After LFCU was notified of your Better Business Bureau complaint, we spoke with you on the phone on October 18.  At that time, you indicated that the email you received (and included with this complaint) regarding a pending deposit was sent from a gmail address and not the credit union.  Please contact me with any further questions or concerns.  Thank you.  

  Customer response

  10/30/2024

  
  Complaint: ********
  
  I am rejecting this response because:

  This picture right here was taken by me on October 10th where afterwards it was already paid and they put me in the exact same account when I made a brand new account which is not physically possible if the account is charged off and disappears. The account was paid off before this and I was put right back into this same account after. I just wanted to clear the air that this still showed that it was a negative balance after I had paid and did everything with the account. This account was paid off but somehow I got back into it from a “accident” and I was just making a brand new account. I don’t know how it is physically possible to do that if the account was completely paid off.
  
  Sincerely,
  
  ****** ******

  

  Business response

  11/13/2024

  During an October 18 conversation with the member, he admitted that an email message he believed came from the credit union actually was from a gmail account not associated with the credit union.  LFCU sent the member a letter of explanation on October 28.   

  Customer response

  11/18/2024

  
  Complaint: ********
  
  I am rejecting this response because:

  Seriously? Your response is that you sent a letter about it being from a gmail account and not a business email? How about you respond to the fact that it is now November 18th and I STILL HAVE NOT RECEIVED MY MONEY THAT I TRANSFERRED IN AUGUST!!!!!!!! Address the fact that you and every single one of your employees have continuously lied to me and to the BBB. You are a despicable business. How about you address the countless times you have told me on a recorded line that you have sent my money? reopened the account? mailed a check? and have not actually done any of those things and are STILL holding my money hostage. You have not even acknowledged that part on a single one of your responses. Interesting.

  How about you address that the negative balance was paid TWICE - once in collections, where it wasn't supposed to be, and it is STILL on my credit even though it was paid - twice. From a closed account that you ACCIDENTALLY reopened - but you cannot reopen the account with my money in it for me to access? Please, try to make that make sense. We have a serious lawsuit on our hands here. You are with-holding $60,000 from me and have caused extreme distress in my life due to your inability to do your jobs. This is extreme bank negligence and you need to resolve it NOW.

  
  Sincerely,
  
  ****** ******

  

  Business response

  11/19/2024

  LFCU has tried to explain to Mr. ****** that the credit union never received the funds he believes were sent to his account and tried to help him understand that someone outside of the credit union may be scamming him.  Since he indicated that the email he is receiving is not from LFCU, he is likely a victim of fraud.  

  Mr. ****** filed a complaint with the credit union's regulator, NCUA, and they are now investigating this matter; therefore, LFCU believes this complaint should be closed.  

  Please contact me with any further questions or concerns.  Thank you.  - ***** ****** a******@libertyfcu.org ***** ******** ext ****

• Initial Complaint

  10/08/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I have been harassed for over a year about a so called late payment. Any time I ask what month I missed they ovoid sending any kind of proof whatsoever. I’m a very loyal customer that has never had a late payment in my life. Anytime they mention a certain month I send proof of a bank statement that I have paid. After a year they finally decide to report me to the credit bureau and drop my 730 score to a 520. I still ask for proof and I get nothing but “call over the phone and we will talk” this is absolutely ridiculous. Me and my small family of 3 were in the process of getting approved for a mortgage on our first ever home. My wife is a registered nurse and I’m a heavy highway builder. We do well for ourselves and would never skip a payment intentionally. We’ve tried to be as understanding as possible but without warning after a year of harassment I get hit with a massive credit drop. We back paid them two payments for this month and still cannot get an explanation. I just want to know where my money is going!

  

  Business response

  10/17/2024

  Mr. ******** has been in communication with LFCU via email regarding his account and was told to call LFCU for clarification.  He has not done so.  Unfortunately, I have been unable to reach him to provide further information regarding his questions and some options we may have to help him. I left voicemail messages for him on 10/15 and 10/16 but have not yet received a return call.  I would welcome the opportunity to speak with him.  My phone number is ************, extension ****.  Thank you.  - ***** ******, SVP Chief Risk Officer  

• Initial Complaint

  07/28/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  Liberty Federal Credit Union requires coverage on the security vehicle (Yamaha) of the loan. I have sent the information, been on live calls with them and my insurance agent, and had my agent's email information, and still, they are saying they haven't received anything. I am being charged $85 a month for their coverage and have been since before March. I want all charges refunded and the fee to not be charged on any further invoices. They are purposefully negligent in their ability to validate coverage so that they can fraudulently charge me more money. The most recent EE ID I spoke to ***** 7/19 and ***** 7/26. I spoke to a supervisor

  

  Business response

  08/12/2024

  After receipt of the insurance policy information needed, LFCU requested a refund.  The cost of the unneeded insurance coverage was credited to the member's loan on August 2, 2024.  Please let us know if there are any further questions or concerns.  Thank you.  

• Initial Complaint

  07/11/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I have had this bank for a couple of years now & have had a pretty good standing with them. Upon trying to apply for several different loans, I soon realized that this bank wasn’t for me as they denied me time & time again. Now they have refunded a NSF once or twice for me in the past. However, RECENTLY I had switched banks over to {***** *****} for a bonus checking offer. What I failed to realize was that I had not switched over my auto pay for rent; therefore, causing me to incur an over draft in my current banking account. I had $4 in the account for another credit card payment. BOTH caused my to incur TWO NSFs of $25, TOTALING $50! The current bank |also| managed to charge my rental agency a $50 returned check fee! Honestly, I would like that $50 returned check fee back as I’ve all ready paid it; however, I understand that may not be possible. I just want this bank to take off those fees & stop harassing me on the daily to @make this account current” by calling & emailing me constantly.

  

  Business response

  07/19/2024

  LFCU spoke with the member and the matter has been resolved.  Please contact me with any further questions or concerns.  Thank you.  

  Customer response

  07/26/2024

   
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. Thank you for everything that you have done, bbb!
  
  Sincerely,
  
  ****** *******

• Initial Complaint

  07/01/2024

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  I am filing a complaint against Liberty Federal Credit Union regarding an unwarranted charge for forced-place insurance on my automobile loan. Despite providing the declarations page and the entirety of my insurance policy from my insurance company multiple times, specifically on May 31st and June 20th, Liberty Federal Credit Union has charged $255 to my auto loan for insurance that should not have been applied. This has caused undue financial stress, unnecessary time and energy trying to talk with a call center representative, and frustration as I have fulfilled all necessary requirements to prove my vehicle is adequately insured. I request the immediate removal of this charge and a thorough review of their practices to prevent such issues in the future. The third party that they are using for this practice is not equipped to be handling such issues as they have yet to even return a phone call or email and have only been contacting me via mail which takes 7+ days for a response.

  

  Business response

  07/02/2024

  After receipt of the policy that included LFCU's lien, the cost of the unneeded insurance coverage was refunded to the member's loan on July 1, 2024. Please let me know if there are further questions or concerns.  Thank you.  

   

  Customer response

  07/09/2024

   
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me.
  
  Sincerely,
  
  ***** *******

• Initial Complaint

  06/25/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  March 6th $255 charged for lender placed insurance with proof of insurance given. March 27th $85 charged for lender placed insurance with proof given again June 24th $170 charged again for lender placed insurance. Called multiple times and emailed proof with no resolution. I want refunded for these charges as well as loan capitalization insurance $63.35 Jan 31st, feb 29 63.43, March 31 $63.73, April 30th $63.29, May 31 $62.50. I requested this be removed January 28th and again June 4th via email. I want these all refunded as well as any interest incurred on the loan from these charges

  

  Business response

  07/08/2024

  LFCU worked with the member to obtain the proof of insurance needed and all lender placed insurance was refunded on July 5.  In addition, LFCU is working with the member to obtain the signatures needed to remove the payment protection placed on the loan.  Please contact me with any further questions or concerns.  Thank you.  

• Initial Complaint

  01/03/2024

  Complaint Type:

  Customer Service Issues

  Status:

  Answered

  More info

  Receiving a new class action waiver agreement from them today only tells me whats in their forecast: I have 6 accounts with LFCU and three of those are business accounts. We have had a number of issue with this company. With a promise of 3.45% intrest in checking account we have not had this come through on our largest account. 5 months in when we realized we where not receiving the dividends they state the account was not set up correctly. Well who;s fault was that? We are not it your system setting up our account. You all are! This took over a month and multiple calls to get this fixed. In the process they took it upon themself to change the Tax ID structure of one of my other business accounts. I'm sure we have some legal ramifications here. This also locked me out of all my accounts for over a week. For over a week I could not check, manage, transfer or touch my funds. This also led to an account having over drafter fees. I have attempted to have this escalated and it's gone no where. I have lost the ability to view my Rewards statues online to make sure we meet the 3.45% rewards monthly requirements for each month on the accounts the rewards are suppose to be on. At the end of the day this is starting to seem like a gimmick. We will promise you 3.45% intrest but we will set it up wrong and also find a million other ways to dodge from having to pay this to you. I will need the 3.45% intrest rate back paid from the time I brought this to your attention and I will need any and all accounts impacted to be fixed and appropriately compensated for the 3.45% rewards that were blocked/ withheld/ and or wrongfully set up by your institution. I look forward to and immediate resolution going above and beyond to make up for the mistrust your financial institution has brought on itself.

  

  Business response

  01/17/2024

  I spoke with the member yesterday and sent a follow up email per his request.  I am now waiting on his return call to discuss his concerns.  

  Customer response

  01/29/2024

  the bank contacted me and stated they would be fixing the issues. I am stll waiting on the issue to be fixed. please do not close this case. 

  

  Business response

  02/06/2024

  Between 2/1/24 and 2/2/24, LFCU corresponded with the consumer and with his authorization made agreed upon changes to the structure of his online banking account and checking account.  

• Initial Complaint

  12/18/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  The account in question was established in October of 2021 and ALL payments were made on time. Due to extensive medical bills … On 6/3/2023 I applied for and was approved for a “Skip-a-payment”. On June 6th, $500 was taken from my checking account anyway. This caused many overdraft fees. On 7/27/2023, I was again approved for a “Skip - a - payment” (August 5th payment). Instead, ON 7/31/23 THE LOAN WAS PAID OFF IN ITS ENTIRETY! On 8/7/2023, Liberty Federal Credit Union emailed me that the August payment had been initiated ON A PAID-OFF / CLOSED ACCOUNT!! I immediately called and was assured that the payment would just bounce right back to my bank because it was a closed account and, just to be sure, We closed the $5 savings account I was forced to open to secure the loan (See attached refund check). AGAIN they took $500 out of my checking account and it did not bounce back to my bank as they assured me it would, instead, it was deposited into THE ACCOUNT I CLOSED on 8/7! I immediately went to my bank to contest the withdrawal, but nothing happened for days, so I called Liberty back and they sent me a check for the $500 on 8/11 (See attached) and again assured me that all of my accounts were closed. On 8/14, my bank dispute was resolved and the $500 was returned to my account AGAIN, FROM CLOSED ACCOUNTS!! I should not be held accountable for the continued screw-ups of Liberty Federal Credit Union and its questionable accounting practices. Because LFCU believes I owe them $500, this account has been sold to ****** *** ********** (**** **** ****** ******* ******* ******* *****) and both companies have reported this to the credit bureau. Now ****** *** ********** are asking me for $640 with collection fees.

  

  Business response

  01/04/2024

  The consumer requested to skip a payment and it was granted.  Subsequently, the member never stopped the reoccurring payment she had set up; therefore, the payment was applied to the member’s loan.  LFCU apologizes for any misunderstanding regarding this matter.
  On July 31, 2023, the loan was paid off and on August 7, 2023, the loan and share account were closed.  On August 10, 2023, the member sent another payment to LFCU from their account at another financial institution, the LFCU savings account was reopened, and the payment funds were placed into the member’s savings account.  On August 11, 2023, the member called in and requested the account be closed out again and was sent a cashier’s check for the balance in the savings account which contained the loan payment sent after the payoff.  On August 15, 2023, LFCU was notified that the consumer contested the payment at the other financial institution where the funds were withdrawn.  As a result, the consumer received the funds back into her checking account at the other financial institution and LFCU was charged the amount of the payment.  Therefore, LFCU deducted (reversed) the funds from the member’s savings account leaving it negative and requested the duplicate refund of the payment be returned to LFCU to recoup its loss.  

  Customer response

  01/05/2024

  
  Complaint: ********
  
  I am rejecting this response because:
  
  The information provided by Liberty Federal Credit Union is not accurate. I did not submit a payment on August 10 after my account was closed, why would I? I have the email to prove that the payment was initiated on their end, on an already closed account. As soon as I received that email, I contacted them to alert them to the fact the account was closed. I was assured repeatedly that the amount would just bounce right back to my bank, because I did not have any accounts opened with them anymore. This did not happen, and the full amount was withdrawn from my checking account.  I immediately went to my bank and explained the situation, and they said they would reach out to Liberty to get my funds back.  When that did not happen in a timely manner, I contacted them myself, and was mailed a check, refunding me the full amount. That should’ve been the end of it. But, later, my bank got a refund electronically, which never should’ve happened because again, my accounts with Liberty Federal Credit Union were all closed.  I should not be held accountable for their questionable business practices and their inability to track their own accounts. I want this matter settled. I want my accounts closed, AGAIN, and I want this removed from my credit report. Not only the Liberty Federal Credit Union account, but the account from ****** *** **********, the company it was sent to for collections.

  
  Sincerely,
  
  *** ********

  

  Business response

  01/09/2024

  On August 7, 2023, LFCU received and processed the check paying off your loan and effective dated the payoff for you to July 31, 2023.  Your loan payment was also set up to process on August 7; therefore, LFCU was unable to stop the payment when you called.  Review of the conversation on August 7 indicates you told the credit union that the payment would bounce.  The representative let you know that the payment was already in process when the payoff was received and guided you through your mobile application to stop the recurring monthly payments you had set up.  In addition, she let you know that if the payment processed, it would be posted to your savings account since the loan was paid off.  When you disputed the checking account transaction with your other financial institution, they debited LFCU and provided credit to you.  Upon your request, your other financial institution processed the transaction that essentially refunded you a second time.  I apologize for any confusion.  

  Customer response

  01/09/2024

  
  Complaint: ********
  
  I am rejecting this response because:

  Again, your information is inaccurate / incomplete.  What you are failing to acknowledge is that I had already been approved for a "Skip-a-payment" for August.  NOT ONLY WAS THE LOAN PAID IN FULL, BUT THE TRANSACTION SHOULD HAVE NEVER EVEN BEEN INITIATED!! 

  Also, I'm. not sure if your representative was trying to cover her own butt, but SHE assured ME that the payment would just bounce back to my bank because I had no open accounts with you anymore.  

  I have reached out to the Indiana Attorney general regarding this matter also and the case has been forwarded to The Consumer Financial Protection Bureau in Washington D.C. for review. 

  Again, please get this account back from ****** *** **********, where it never should have been sent in the first place, and you both need to remove the negative marks from my credit report.  If this is not handled to my satisfaction, I will be forced to contact a banking attorney.

  Sincerely,

  
  *** ********

  

  Business response

  01/10/2024

  I apologize for the continued confusion and would appreciate a phone call back from you in order to resolve the matter.  The documentation you provided along with credit union records indicate you received credit for the August payment twice.  Once in your checking account on August 14 at another financial institution and again in a check from the credit union that you deposited into an account at that same financial institution on September 2, 2023.  Please return the funds.  Once received, LFCU can notify ****** of the settlement and satisfaction of the amount owed.  Please contact me to discuss.  Thank you.  ***** ****** ***** ********* extension ****

  Customer response

  01/19/2024

  
  Complaint: ********
  
  I am rejecting this response, but I will return the $500 just to be finished dealing with you!  This, in no way means I am happy with how this was handled! And you can bet if I’m contacted by the Indiana Attorney General, I will cooperate with them 100% so that you cannot put another customer through what I’ve been through with your company! Please email me a link where I can send money, or send me some sort of invoice via snail mail. You should be ashamed of yourselves…
  
  *** ********

• Initial Complaint

  12/12/2023

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I have been charged over draft fees for bills and then returned but they will honor a 5.00 Apple Pay charge that I can’t even find out what’s for plus the 27.00 dollar fee. So I would like my fees back and them to stop honoring stupid stuff….

  

  Business response

  12/14/2023

  As a courtesy to this member, LFCU refunded the fee to her checking account.  Please contact me with any further questions or concerns.  Thank you.  

• Initial Complaint

  11/09/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I signed a retail installment sale contract with ******* & *****, Inc and Evansville Teachers Federal credit union (Liberty Federal credit union took over) 09/10/15.I began researching consumer law, TILA, FCRA,TFRA,IBOAA ect. I sent tender of payment to satisfy the agreement with LFCU in May 2023. A month later I received a text message that they are denying my tender of payment (not returned) and if they didn’t receive a payment by the end of that business day they would repossess my automobile.(Securities Fraud) I have contacted them in writing (certified mail) several times which were ignored. I have sent a notice to the cfo (***** *****) to make him aware of the violations and to resolve the situation which was also ignored. They have further escalated this with committing identity theft. I have been contacted by acquaintances that an “Agent *****” (hired by LFCU) has called them without my consent. I would appreciate your assistance in this matter.

  

  Business response

  12/01/2023

  In March 2023 the member submitted a check to pay off her loan.  The check was identified as fraudulent, and the payment reversed.  Since then, the member has accused the credit union of not honoring/applying her payment, not releasing the lien on her vehicle, and not returning the vehicle’s title.  The credit union is unable to do so until it receives valid payment of the remaining loan balance.  Further, the member continues to avoid communication from the credit union and to surrender the vehicle so that it can be sold to pay off the remaining loan balance.  

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