Consumer complaint received 2023-09-16
Company: LAKE MICHIGAN CREDIT UNION
State: MI
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
XXXX XX/XX/XXXX, I had a mix of some fees caused by checks I had written which in turn made my account go negative. I've had this account for XXXX years at this point and never had an issue close to this. They were inflexible with the fees and one lady I talked to was downright nasty. I decided I no longer wanted to bank with LMCU after XXXX years because of the interaction. 

My last direct deposit to LMCU for {$1800.00} was sent on XX/XX/XXXX. I call LMCU to discuss closing the checking, saving and two credit cards with balances I had with them. This is where the issue comes. 

The deal that was presented to me was that half of my paycheck would be used for the negative balance, the other half I could come into branch and pick up cash.The remaining negative {$1000.00} balance would be put on the loan with the balances from the credit cards and ALL accounts would be closed. The rep reassured me multiple times that the checking and savings balances were {$0.00} and I have to call in to make a loan payment. At this point my login info no longer works so I have no way to verify that the account balances were {$0.00}. So I take her word for it. 

At this point 3 months later, a rep has called me from LMCU to make a loan payment. This was the only topic of discussion and led me to believe everything is just fine. There were NO other attempts at contacting me. 

On XX/XX/XXXX my Mom calls me ( she has an account at LMCU and opened mine for me when I was about XXXX XXXX XXXX, so her name was attached to the account ) saying LMCU withdrew {$1000.00} from her account. SHE called in to see what was going on. Mind you she did not recieve a single phone call before they took from her account. And even after the transaction, SHE was the one who called in. The rep told my mom my checking account ( a different rep later on says it was my savings that was overdrawn ) was 90 days overdrawn and since she opened the account for me XXXX  years ago, that gives them the right to pull from her own checking account with no notice. 

Mom calls me and asks me whats going on with my LMCU accounts. I tell her I don't have any and that they were closed 3 months ago. As I have had no access and haven't heard anything about it. She gives me the story of what happened. I call LMCU to get some clarity as to how this is possible. 

The rep told me that the accounts were still open with a negative balance and she " didnt know '' where half of that paycheck went that was supposed to cover the negative amount. The other negative portion didn't get added to the loan like I told it was. When I brought this up the rep said " Well you signed loan documents didn't you? Wouldn't you have seen the incorrect amount? '' I said I didn't have access to the exact balances of all the accounts. So when the original rep told me that it encompasses everything, im wrong for believing her? Saying things like its my fault for ASSUMING the accounts were closed. I said PULL UP THE PHONE RECORDS. She wouldn't. When I asked if we can talk to the original rep that made this mistake, they REFUSED saying their system can't see who it was. I asked for the phone call recordings and they refused to furnish those as well. They also said they are not going to reverse the charge from my moms account. I went into a branch to talk to someone and it was the same result. Refusing to find out who helped me and phone call records. 

To summarize ; My money was mishandled, I signed for a loan under false pretenses and an incorrect amount. I was told my checking and saving were closed at {$0.00} balance. My login info didn't work so I had no way to verify any of this. No correspondence for 3 MONTHS except when I recieved a call to make a loan payment. Even then the gentleman NEVER brought up that the account was negative still. Then my mom gets charged {$1000.00} with not a single phone call to me or her. Then when I ask to talk to the orginal rep who made all the mistakes, they tell me they don't know who it was. Refused to give phone call recordings.

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