Consumer complaint received 2022-06-28
Company: SCHOOLSFIRST FEDERAL CREDIT UNION
State: CA
Product: Checking or savings account
Sub-product: Savings account
Issue: Problem caused by your funds being low
Sub-issue: Bounced checks or returned payments

Complaint:
I received stimulus check for {$4200.00} from the Department of Treasury of the U.S. issued XX/XX/XXXX it was mailed to my address in XXXX CA XXXX in the summer of XXXX. I delayed in cashing the check because I misplaced my mail key and I also wanted to check with the IRS if it was a check truly granted and issue to me. I checked online on the IRS website and confirm it was a legitimate stimulus check issued in my name. I deposited the physical check at my School 's First Savings Account on XX/XX/XXXX in person at the XXXX, CA branch and XX/XX/XXXX I was able to review my account and noticed the deposit was reversed on XX/XX/XXXX. I called customer service and they informed the same check was deposit at XXXX XXXX XXXX XXXX. I then went to the XXXXXXXX XXXX to get a copy of the check but unfortunately, School 's First Credit Union didn't request the copy of the check processed by XXXX XXXX. I was told they couldn't and wouldn't be able to retrieve this information due to privacy laws. After several attempts in person and over the phone with both banks. I was able to obtain a fax number to XXXX XXXX XXXX XXXX department to request the copy of the processed check needed to report to the XXXX Police Department. However, I never got a response from XXXX XXXX XXXX XXXX. School 's First Credit Union failed me in the following ways, lack of communication, lack of investigation by their Fraud Department, lack of empathy and customer service, and was abused my trust and threatened to freeze and hold my funds on other accounts and/or canceling my membership and ruining my credit card accounts and line of credit if I didn't comply with their policies and procedures ahead of 45-day grace period to bring the savings account current. 
1. They failed to notify me by phone, text, or email the amount of {$4200.00} was reverse by the IRS due to the check already processed by XXXX XXXX XXXX XXXX XX/XX/XXXX by an individual named XXXX XXXX in XXXX AZ. 
2. My Savings/Checking account was flag under suspect of Fraud and demanded payment in writing for the deficient funds of - {$800.00} in my savings account and took the {$500.00} a had available in my checking account and reflected {$0.00} balanced in my checking account on XX/XX/XXXX. When I called and reported a merchant informed me my ATM debit card was flagged for FRAUD when I attempted to make a purchase for groceries. 
3. I called customer service and they told me they were going to hold my funds in my checking account and not making them available until I paid them the- {$800.00} deficiency balance in the savings account. I asked if they could release the {$500.00} funds because I had payments schedule to debit my checking account and customer service supervisor XXXX refused because she didn't have the authority to release funds asked if I can wait till Monday XX/XX/XXXX. My accounts were all flagged for suspicion of XXXX. 
4. I went to the XXXX XXXX XXXX and the Branch Manager XXXX XXXX was kind and she was able to release by funds after speaking to corporate. 
However, they refused removed the FRAUD alert on my account and I was not able to use my ATM debit card until I came up with the deficient balance of - {$800.00} and no one has the authority to issue a temporary credit on the account until the issue is resolved. I was offered to take a loan to cover the deficient balance. I did apply for a loan of {$1000.00} to cover the cost of no wrongdoing of mine. I just decided to wait because I would have to pay interest on this money I borrower of {$86.00} a month and I would like to see if the US treasury can reissue the check in the next 30 days. 
XXXX. Today XX/XX/XXXX I received the processed check from Bureau of Fiscal Service and took it in person to XXXX XXXX XXXX, XXXX XXXX the Branch Manager was kind enough to confirm the suspicious check had another name address and deposited to XXXX XXXX XXXX XXXX the same date reported by IRS with same check number, account and routing numbers. She was able to get my ATM debit card activated again. I'm very grateful for her helped and I never felt judge by her. Unfortunately, every other attempt with customer service I was not getting the same treatment and my issues were not being resolved. I felt the need to submit this information to the CFPB because these policies and procedures have to improve for these two financial institutions.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation