Consumer complaint received 2024-04-12 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Confusing or misleading advertising or marketing
Company: FourLeaf Federal Credit Union
State: NY

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am writing to file a formal complaint against Bethpage Federal Credit Union regarding deceptive and misleading practices in connection with my recent application for a XXXX XXXX XXXX XXXX XXXX  ( XXXX ). 

On Friday, XX/XX/2024, I engaged in a phone discussion with one of Bethpage 's agents to explore the possibility of obtaining a XXXX. During this conversation, specific details were provided regarding the terms and conditions of the loan, including an introductory interest rate of 6.99 % for the first 12 months. Furthermore, I was assured that should I not qualify for this rate, the default rate would be the prime rate, which was then and remains at 8.5 % ^ [ 1 ]. It was explicitly stated that Bethpage does not employ a " prime + points '' structure for loans. 

However, after a prolonged waiting period, I was informed of a conditional acceptance under terms vastly different from what was represented to me. The offer I received was at an interest rate of 10.5 %, calculated as prime rate plus 2 percentage points. This outcome was surprising and contradictory to the assurances provided during the initial conversation. 

Subsequent attempts to seek clarification and resolution were met with further disappointment. A loan processor did not promptly contact me, experienced difficulties with communication due to an incorrectly entered email address, and ultimately faced a disheartening response from upper management affirming the unfavorable terms. 

Despite my efforts to resolve this matter directly with Bethpage Federal Credit Union, they have refused to make any exceptions or modifications to the misleading terms provided. This situation has caused significant distress and financial uncertainty. 

I believe that Bethpage Federal Credit Union 's actions constitute deceptive and misleading practices, which warrant investigation by the Consumer Financial Protection Bureau. I request that the CFPB intervene and investigate this matter to ensure consumer protection and uphold ethical standards within the financial industry. 

Enclosed with this letter are copies of relevant documentation, including emails and records of communications, to support my complaint. 

Additionally, upon further review of Bethpage Federal Credit Union 's website, it has come to my attention that there is a significant disparity between the terms and conditions presented on the website and the offer I received for a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ^ [ XXXX ]. The website clearly states an introductory fixed APR of 6.99 % for the first 12 months, followed by a variable APR of 8.50 % based on the prime rate thereafter, with no mention of credit scores impacting the rate. However, the terms provided to me were at an interest rate of 10.5 %, calculated as the prime rate plus 2 percentage points. This discrepancy demonstrates a clear misrepresentation of terms and potentially misleading practices by Bethpage Federal Credit Union. 

I believe it is imperative to bring this to your attention as it raises concerns about the transparency and accuracy of information provided by Bethpage Federal Credit Union to its customers. This discrepancy not only undermines consumer trust but also suggests a failure to adhere to ethical and regulatory standards within the financial industry. 

I urge the Consumer Financial Protection Bureau ( CFPB ) to investigate this matter thoroughly to ensure that financial institutions like Bethpage Federal Credit Union are held accountable for their practices. It is essential to protect consumers from deceptive lending practices and ensure transparency in all financial transactions. 

Thank you for your attention to this serious issue. I look forward to your prompt investigation and a resolution that upholds consumer rights and accountability. 

Additional Text Referencing Potential Violations ( to be incorporated into the letter ) : Upon further review of Bethpage Federal Credit Union 's website, it has come to my attention that there is a significant disparity between the terms and conditions presented on the website and the offer I received for a XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ^ [ XXXX ]. The website clearly states an introductory fixed APR of 6.99 % for the first 12 months, followed by a variable APR of 8.50 % based on the prime rate thereafter, with no mention of credit scores impacting the rate. However, the terms provided to me were at an interest rate of 10.5 %, calculated as the prime rate plus XXXX percentage points. This discrepancy demonstrates a clear misrepresentation of terms and potentially misleading practices by Bethpage Federal Credit Union. 

________________ XXXX1 Regulations potentially violated by Bethpage Federal Credit Union include Regulation Z ( Truth in Lending Act ), UDAAP ( Unfair, Deceptive, or Abusive Acts or Practices ), Regulation B ( Equal Credit Opportunity Act ), Regulation V ( Fair Credit Reporting Act ), Regulation X ( Real Estate Settlement Procedures Act ), and Regulation O ( Fair Debt Collection Practices Act ).

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