Consumer complaint received 2024-02-01
Company: DIGITAL FEDERAL CREDIT UNION
State: MA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process
Sub-issue: Payment process

Complaint:
I had a Heloc with DCU Federal credit union that I applied for in XXXX with my husband for {$94000.00} This account had a XXXX balance and was in good standing. My husband died in XXXX of XXXX. I brought the death certificate paperwork to the XXXX XXXX in XX/XX/XXXX. I received an email from them to change tax reporting on my deposit and loan accounts and this was dropped off in XX/XX/XXXX to the XXXX, Ma DCU branch. I found out on XX/XX/XXXX, that my HELOC was XXXX, and I contacted DCU same day. They advised that my HELOC was closed in XX/XX/XXXX and advised that it was closed because the borrower is deceased. They knew he passed 18 months earlier and tax reporting was changed to my name; stated statements would still come in both names- no issues there. Was advised I could use my accounts without interruption. This account was closed without notice to me ( violation of XXXX XXXX XXXX ) I received the discharge paperwork on XX/XX/XXXX. As this is adverse action, I should have received notice of DCU 's intent to close this account. No notice was received. My mortgage, XXXX checking accounts, XXXX savings accounts, money market account and credit card are with XXXX, and I am an outstanding customer who pays my bills on time, never missed a payment, maintain a strong XXXX XXXX and they can see by my deposits that my income has doubled since my husband died. They did not notify me of this adverse action as they should have. 

XXXX XXXX XXXX is very clear and states : ( XXXX ) When notification is required. A creditor shall notify an applicant of action taken within : Official interpretation of Paragraph XXXX ( a ) ( XXXX ). 
( i ) 30 days after receiving a completed application concerning the creditor 's approval of, counteroffer to, or adverse action on the application; ( ii ) 30 days after taking adverse action on an incomplete application, unless notice is provided in accordance with paragraph ( c ) of this section ; ( iii ) 30 days after taking adverse action on an existing account; or ( iv ) 90 days after notifying the applicant of a counteroffer if the applicant does not expressly accept or use the credit offered. 

( XXXX ) Content of notification when adverse action is taken. A notification given to an applicant when adverse action is taken shall be in writing and shall contain a statement of the action taken; the name and address of the creditor ; a statement of the provisions of section XXXX ( a ) of the Act ; the name and address of the Federal agency that administers compliance with respect to the creditor ; and either : ( i ) A statement of specific reasons for the action taken; or ( ii ) A disclosure of the applicant 's right to a statement of specific reasons within 30 days, if the statement is requested within 60 days of the creditor 's notification. The disclosure shall include the name, address, and telephone number of the person or office from which the statement of reasons can be obtained. If the creditor chooses to provide the reasons orally, the creditor shall also disclose the applicant 's right to have them confirmed in writing within 30 days of receiving the applicant 's written request for confirmation.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief