ComplaintsforSouthwest Financial Federal Credit Union

• Initial Complaint

  06/20/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  SWFCU has reported an inaccurate late payment on my credit report. This is the second time this has happened. I made my payment within 30 days yet they reported a 30 day late pay to my credit. This bank does not allow you to setup auto pay because they are using a third party company that handles their credit card payments. The only option is to transfer from their bank account or make an express pay from an external bank account. Additionally, they have force withdrawn funds from my account to make these payments before, yet I have funds in my savings account they failed to use. I never signed any document giving you permission to WITHDRAW funds from my account but why not initiate the transfer before reporting an inaccurate 30 day late payment.

  Business response

  06/24/2024

  The Fair Credit Reporting Act (FCRA) regulates the consumer credit reporting industry.  In general,the FCRA requires that Southwest Financial report consumer credit information in a fair, timely, and accurate manner. With this, Southwest Financials credit reporting process is automated,which creates a streamlined process for all members without human intervention.
  

  Southwest Financial offers a full range of digital banking products inside our digital banking platform, including the ability to transfer to/from your Southwest Financial accounts and loans.  Additionally, Southwest Financial offers a PayMyLoan option outside of our digital banking platform.  Through PayMyLoan, members may setup one-time or recurring loan payments. 
  

  Ms. Black chose to use the PayMyLoan one-time payment option outside of our digital banking platform. Prior to accessing PayMyLoan, there is a disclosure stating Please note,if you are paying on a past due loan, please confirm the amount due through our digital banking app or contact a Member Solutions Specialist at ************,Option 4.  Payments typically post to your account within 48 hours. 
  

  Our Membership and Account Agreement identifies our business days as Monday through Friday, excluding Federal holidays.  Additionally, our Membership and Account Agreement states You agree that, except stated in this Agreement, all deposit transactions between you and Southwest Financial will only be final and completed when entered on the records at Southwest Financial at its corporate office.
  

  In this particular situation, Ms. ****** payment needed to be posted to her loan prior to the end of business on Friday, May 10th since the 12th (30th day) was on a Sunday, which is a non-business day.  Ms. ****** payment was posted to her loan on Monday, May 13th.  Therefore, the information reported was correct and accurate.  It is not the policy to manipulate the information reported to the credit bureau unless the information reported was inaccurate.  

• Initial Complaint

  03/22/2023

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  SW Financial asked for proof of full coverage insurance on several occasions on a vehicle we purchased 11/22' we sent on several occasions what was asked of us even recieved email correspondence back saying that it was recieved. We never recieved any calls from SW saying that we they were not recieving the docs or asking for anything in addition to what we sent in. We recieved a letter saying that a tremendous amount was added to our loan balance for "insurance" to cover their vehicle and causing our payments to go up to $1,100 . As soon as we recieved the letter we immediately called in and spoke to someone and sent in the insurance information again on 2/17. We had to follow up on several occasions to make sure that it was received, reviewed, processed and was told after calling several times that it was all good and that it would be removed within the next week. It now has been reported to our credit the difference in the balance causing our credit score to decrease, causing our debt to income to be higher because of the $6,000 insurance that was slapped on top of our loan balance. This should've never happened! We've done everything that we needed to our coverage was on the vehicle from day 1. We sent in the proper paperwork each and every time we were asked and were never contacted even for a follow up after sending in the paperwork and confirmed it was received. My wife suffers from anxiety and having this balance added to our loan for something that should've never happened is completely unfair and stressful for her. Were the only ones that reach out and for this to be reported because their "waiting" for insurance to send them the money back is an issue for sw financial not a burden that we should have to worry about on the customers end. We followed up yet again today and were now told that there was a lapse in coverage. We've spoken to reps before that was told everything was sufficient and will be removed. This has been going on for over a month now.

  Business response

  04/10/2023

  To Whom It May ************************ 19842096

  After receiving this concern and speaking with **************, we are working directly with ************** to resolve this issue.  The information he provided was very beneficial in assisting ** track down the breakdown in our collateral protection insurance program.

  Sincerely,

  *****************************

  President/CEO

• Initial Complaint

  02/22/2022

  Complaint Type:

  Billing Issues

  Status:

  Resolved

  More info

  This bank does not have an option to select auto pay while making credit card payments. They have to be set up as a transfer of a set amount. I did this on my card and remained this way for years. I noticed extra payments coming out that I did not authorize. I thought little of them until December an extra amount did not come out. I was then hit with a delinquency in February. I have been making the same set payment for years with no problem. Apparently this bank was taking money from my checking to cover the excess minimum payment without telling me. One month they decided not to do this and claim I'm at fault. If you're going to start taking money out of my checking without my authorization, do not then stop and claim I'm delinquent. Or at the very least notify me. I receive electronic statements and do not check them monthly. Without any notification by phone, email, mail, or even through the app I had no idea my payments were not meeting the minimum due. My auto transfer is $58.

  Business response

  03/11/2022

  Consumer Response /* (2000, 5, 2022/02/25) */ I need to withdraw my complaint. The business has come to a suitable resolution with me. Thank you so much.

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