Consumer complaint received 2022-01-11
Company: First Technology Federal Credit Union
State: MD
Product: Checking or savings account
Sub-product: Savings account
Issue: Managing an account
Sub-issue: Fee problem

Complaint:
I am going to post a transcript of my communications with First Tech Federal Credit Union regarding an ACH reversal fee that was charged to the account. 

On XX/XX/XXXX, I had a balance of {$500.00} in the account. I had just deposited {$500.00} that day. 

On XX/XX/XXXX, I attempted an ACH transfer of the funds from First Tech to my XXXX XXXX account in an effort to zero out the balance so that the account could be closed. This is standard practice at financial institutions- zeroing out the balance before closing the account. 

On the same day, the ACH was rejected by First Tech and a {$33.00} reversal fee was charged. The reason cited in the conversation below is that the " available '' balance was only {$490.00}. It turns out that the credit union " locks '' {$5.00} of the total balance in the account. Even though I was attempting to pull all of my funds out, and my intention to close the account was made clear to representatives of the credit union via secure message, the credit union firmly rejected my request for a fee waiver. My intent in this case could not be more clear. 

I continue to request a refund of the {$33.00} returned item fee. Once this is done, I will proceed to close my account. This credit union does not deserve my business going forward. There are plenty of other credit unions that do. 

Transcript below : XXXX XXXX XXXX XX/XX/XXXX, XXXX XXXX Hi, let me get this straight : so it is OK for the credit union to " take '' from my {$5.00} " locked '' balance with your inactivity fee ( on XX/XX/XXXX ), but not for me to try and ACH pull the entire {$500.00} balance out? That is my money, whether or not the credit union considers it locked or not. This is ridiculous. I am initiating a complaint with the CFPB. That is now in process, and I hope you have a change of heart and reverse the substantial fee that was charged in this case. Clearly you can see what my intent was - stop hiding behind words like " this insufficient funds fee is considered valid ''. 
Sender Image First Tech Federal Credit Union XX/XX/XXXX, XXXX PM Hello XXXX, Thank you for your secure message response. I understand your desire to simply close the account by transferring all funds. However, you must maintain the required held amount, and you can transfer only available funds. Simply contact us directly to close your accounts and deliver the final balance to your address on file. 

At the time of the ACH deposit, there was {$0.00} current balance and - {$5.00} available balance, so once the deposit was received, your account was once again in a positive standing with {$490.00} available balance. This insufficient funds fee is considered valid. 

Unfortunately, you do not have any courtesy fee reversals available. Credit unions are not-for-profit, and we are limited the amount of fees that we can reverse not caused by credit union error. Fee reversals may affect the value of rates and services that we can offer our members such as yourself.

If you would like to close your accounts, then please confirm your address on file and we can send a cashier 's check with the remaining {$5.00} balance ( or any additional funds left ). I apologize for any inconvenience. 

If you need additional assistance please do not hesitate to reply to this secure message. We are available to reply to messages on Monday through Friday from XXXX XXXX  to XXXX XXXX Saturday and Sunday from XXXXXXXX XXXX to XXXX XXXX Pacific Time. 

Sincerely, XXXX XXXXSupport Associate Sender Image XXXX XXXX XXXX XX/XX/XXXX, XXXXXXXX XXXX  Thank you for the reply. I appreciate your message, but I disagree with your rationale. I made a good faith error in trying to close my account by first withdrawing the {$500.00} balance. You are saying that {$5.00} of my balance is held and can't be withdrawn. Well, what else am I supposed to do if I want to close the account? I will once again request that this ACH fee be reversed, or I will escalate a complaint to the Consumer Financial Protection Bureau. Thank you. 
Sender Image First Tech Federal Credit Union XX/XX/XXXX, XXXX PM Hello XXXX, We appreciate the message, and I hope you are doing well this afternoon. I am sorry to hear of the fee and I understand the confusion. I can certainly check. 

XXXX, I see you were charged in inactivity XX/XX/XXXX and XX/XX/XXXX which made the balance XXXX, and took the {$5.00} in the membership savings that is always placed on hold. When you deposited {$500.00}, the same {$5.00} went into the hold status for the membership savings which means your available funds were {$490.00}, the following ACH debit was for {$500.00}. In reviewing your account for a courtesy reversal, I see we are not authorized to credit the fee. Credit unions are not-for-profit, and we are limited the amount of fees that we can reverse that are not caused by credit union error. 

We can close your account and send the remaining funds to you via cashier 's check. Please make sure your address on file is correct. 

If you need additional assistance please do not hesitate to reply to this secure message. We are available to reply to messages Monday through Friday from XXXX XXXX to XXXX XXXX, Saturday and Sunday from XXXX XXXX to XXXX XXXX Pacific Time. 

Thank you for your continued membership! 

Sincerely, XXXX Your eSupport Team Sender Image XXXX XXXX XXXX XX/XX/XXXX, XXXX AM Hi. I attempted to ACH pull my balance of {$500.00} a few weeks ago but it was returned and I was charged a {$33.00} fee. I don't think I did anything wrong, I was trying to clear my balance and close the account. I had {$500.00} in the account. Why did this happen? Please waive this fee and restore my balance to {$500.00}.

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