Consumer complaint received 2023-07-22
Company: VYSTAR CREDIT UNION
State: FL
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
Regarding : VyStar Credit Union Auto Loan To Whom It May Concern : We are submitting, for your review, the details of our complaint regarding the below described business practice. Request an exam be opened to review, including review of the call recorded by VyStar with their customer service representative and the information that they provided. 

We purchased a vehicle, which was financed by VyStar with a funding date of XX/XX/XXXX, and made regular payments for the first several months after the loan was opened. On XX/XX/XXXX, we made a {$45000.00} payment to pay the loan ahead. VyStars online banking provided the ability to select if payment made was for regular payments or for principal reduction, and regular was selected for this payment. Then, on XX/XX/XXXX, we made a {$4000.00} payment designated upon submission as a Principal Only payment followed by another Principal Only payment of {$460.00} on XX/XX/XXXX. 

After making those payments, every time that we logged into VyStar Credit Union online banking ( approx. 1-3 times any given week ) it showed that we had a {$0.00} payment due for this loan, which we expected after having made such a substantial payment to pay the loan ahead. By happenstance, a screen shot of the online banking site showing the {$0.00} payment due was captured on XX/XX/XXXX due to key mis-stroke, which will be included with this complaint submission. 

On XX/XX/XXXX, we started receiving credit monitoring alerts that our auto loan with VyStar Credit Union was marked as past due although it had shown for over 3 months that payment of {$0.00} was due in online banking. Upon accessing the VyStar online banking site, we saw that our vehicle loan was no longer displayed at all, preventing us from viewing the history or transactions on the loan. 

I ( XXXX XXXX called VyStar customer service at XXXX at XXXX XXXX on XX/XX/XXXX and, after a very lengthy hold, spoke with a representative for a total call duration of 57 minutes. I inquired what happened and requested that the past due status reported to the credit bureaus be reversed since we made a payment of {$45000.00} on XX/XX/XXXX to pay the loan ahead. I also advised the representative that every time I accessed online banking throughout the months of XXXX, XXXX, and XXXX that it always showed that I had a payment due of {$0.00}. Representative stated that their online banking system shows a {$0.00} payment due when the loan is due for payoff and that I was supposed to know ( proactively, without them informing me ) to call them or go into a branch location to obtain a final payoff since the {$0.00} payment due indicated in online banking was incorrect. 

The VyStar representative stated that there was nothing that she could do since the loan was now in closed status in their loan system but that she understood the issue with it showing {$0.00} payment due online, even referring to the scenario and a highly unusual circumstance. The representative advised that, due to the unusual situation, I would receive a call back from a supervisor later that day or on the following day. I explicitly asked the representative if I would actually get a call back since I have had instances with other companies ( particularly XXXX XXXX and XXXX XXXX ) in the past that promised callbacks and never followed through. I was strongly assured by the representative that I would get a call back and that she was additionally putting an event on her calendar to follow-up and make sure that I received a call back. As of todays date, I have never received a call back, follow-up email, letter, text, or other communication of any kind from VyStar regarding this issue. 

I opened up disputes for the reportedly late payments with 2 of the credit reporting bureaus, both of which VyStar responded to the respective bureau stating that the late payment was accurate. Since VyStar reported the loan as paid late, our credit scores have dropped by approximately 70 points with 2 of the credit bureaus and XXXX points with the 3rd. Before this took place, our scores with each bureau were over 800 points and considered by the bureaus to be Excellent. Now, our scores have fallen out of Excellent standing, down through Very Good, into Good status ( lower 700s ) with the bureaus. This adversely impacts our credit rating for any lending products that we apply for, subjecting us to less favorable and more costly interest rates for many years to come. 

In summary, VyStar Credit Union provided online banking that 1 ) allowed us to indicate whether payments made should be applied as regular payments or principal only, and 2 ) consistently showed that we had a payment due of {$0.00}. Due to the belief that the payments were applied as directed and that there was indeed a {$0.00} payment due, as expected and indicated by online banking, coupled with the fact that we were never contacted by VyStar Credit Union in any way to indicate that there was an issue, there was no reasonable way for us to be able to avoid this snare. 

Thank you for your assistance with this matter.

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 explanation