Consumer complaint received 2026-06-02 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: GLOBAL CREDIT UNION
State: WA

Complaint narrative:
Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Fraudulent Force-Placed XXXX XXXX Charges by Global Credit Union CASE DESCRIPTION : I am filing this formal complaint against Global Credit Union for engaging in unfair and deceptive practices ( UDAAP ) regarding forced Collateral Protection Insurance ( XXXX ) premiums on my auto loan. Background and Details : Financial Institution : Global Credit Union Account Number : [ XXXX ] XXXX Vendor : XXXX XXXX XXXX - Vehicle Status : Totaled as of XX/XX/XXXX. ) The Violation : I did not have a personal auto insurance policy, and Global Credit Union appropriately force-placed XXXX coverage on my vehicle. However, I previously filed an insurance claim through this XXXX policy when my vehicle suffered a total loss on XX/XX/XXXX. On XX/XX/XXXX, XXXX XXXX informed me that the XXXX policy allows only one claim for the life of the vehicle/policy. Therefore, after that first claim was paid on the date of XX/XX/XXXX, the policy was completely exhausted and incapable of providing any further coverage. If a policy has a lifetime cap and can never payout again, there is zero risk to the lender ( Global Credit Union ). Charging me the same exact $ XXXX monthly for a policy that Global Credit Union knew would pay {$0.00} is a severe compliance violation. When I called and spoke with one of your representatives, XXXX, whom I was told was the supervisor about this matter on Tuesday XX/XX/XXXX, she stated this same {$140.00} billed every month since XX/XX/XXXX itemized as " XXXX XXXX '' was for admin, tracking, and repo fees. '' She also stated I must pay " XXXX XXXX '' even though my vehicle is already totaled and they are aware of this. No risk means no premium. Federal regulations from the CFPB and NCUA state that a credit union can only charge you for XXXX Insurance to protect its financial interest in the collateral. If the policy payout because it is " exhausted '' the credit union has no financial protection and I am receiving no service. Global Credit Union is also demanding that I pay a " XXXX XXXX '' on the totaled vehicle by XX/XX/XXXX and are threatening collection actions if I do not. Under RCW 48.22.120 a credit union can only charge to protect their financial interest in the collateral. Once the vehicle is legally deemed a total loss and reported to the state under RCW 45.12.600 the collateral no longer exists to be insured. I am requesting that Global Credit Union cease all adverse collections actions while this matter is under federal investigation. Under RCW 48.22.120 a credit union can only charge to protect their financial interest in the collateral. Once the vehicle is legally deemed a total loss and reported to the state under RCW 45.12.600 the collateral no longer exists to be insured. Despite the policy being exhausted and dead, Global Credit Union continued to forcibly charge my account a monthly XXXX premium for three ( 3 ) subsequent years, my vehicle was totaled on XX/XX/XXXX. Upon reporting the appraisal of a total loss on XX/XX/XXXX, I was denied any payout or coverage because the policy was already " exhausted. '' Consumer Harm : Global Credit Union actively collected monthly premiums for an insurance product they and their vendor knew provided absolutely zero financial protection or benefit. They collected the same dollar amount ( {$140.00} ) did not inform me of the This constitutes a severe compliance violation and breach of the loan agreement. It is illegal to charge a consumer a monthly premium when there is an absolute absence of risk-transfer or active coverage. Because of this deceptive practice, my vehicle is now totaled, the credit union refuses to pay for the loss, and I am left with a loan balance heavily inflated by three years of fraudulent, useless premiums. In conclusion, charging a member a fixed fee for a non-existent insurance product is a clear case of phantom billing and a direct violation of UDAAP standards. Global Credit Union can not legally enforce a contract penalty for an asset protection program that offered zero actual protection. I demand a full, immediate audit of my loan ledger, a retroactive refund of all invalid XXXX premiums collected after the first claim was closed, and a freeze on any remaining balance collections until this deceptive billing practices investigation is fully resolved by the NCUA. Furthermore, if Global Credit Union attempts to recharacterize these monthly charges as tracking, administrative, or repossession mitigation fees to evade liability, I challenge this explanation as a deceptive, post-hoc justification. The monthly statements clearly billed these line items as insurance-related costs. If they were truly tracking and administrative fees, an ongoing $ XXXX monthly fee for an additional three years is unconscionable, undisclosed in the original loan documents, and violates TILA/Regulation Z fee disclosure requirements. They can not collect premium-level pricing for an administrative service they did not perform. Even if the credit union alleges an administrative component to this charge, they did not provide roughly {$4900.00} ( The now 35 payments total I was charged after the one-time XXXX XXXX claim was closed ) worth of " tracking services. '' I was being billed the same {$140.00} XXXX Insurance premium before I filed my first and only claim with XXXX XXXX on XX/XX/XXXX, there is absolutely no way there could have been no adjustment to the billing if the policy was now completely exhausted and would never payout again. Global Credit Union 's own employee and supervisor, XXXX, admitted to me on our XX/XX/XXXX phone conversation that what is being continued to be billed as " XXXX XXXX '' is actually " admin, repo, and tracking fees. '' are experiencing an unjust enrichment windfall. At an absolute minimum, the credit union must refund the vast majority of the funds that exceeded the actual, documented cost of the tracking vendor.

Company response to consumer: Closed with explanation