Consumer complaint received 2026-06-28 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: SECURITY SERVICE FEDERAL CREDIT UNION
State: TX

Complaint narrative:
On XX/XX/XXXX, I was ready for approval for a loan with Security Service Federal Credit Union for an amount of {$6800.00} with an interest rate of 6.75 %. One of the loan requirements was for me to have full comprehensive coverage on the car I was planning to purchase. On XX/XX/XXXX, I set up my car insurance policy with XXXX XXXX and promptly submitted it to XXXX. On XX/XX/XXXX, I spoke with a representative over the phone to complete the signing and completion of the loan contract. Over the phone, I verbally confirmed with the representative that the insurance policy was received and that the policy coverage I had was correct. I received verbal confirmation saying " Everything looked good on their end, and after running it through the system, I had officially been approved ''. We could now move on with the signing process. XXXX to XXXX and XX/XX/XXXX of XXXX, I receive an two emails and paper statements stating that my car insurance policy information needs to be updated and that they " recently received evidence of an insurance policy [ without ] any evidence of coverage for physical damage and/or theft listed on the insurance declaration page. The terms of your loan agreement require that these coverages be maintained. '' Immediately, I assumed that they were referring to the second insurance policy I had to obtain XX/XX/XXXX in order to obtain my Occupational Driver 's License for the DWI charged I officially received XX/XX/XXXX. I promptly send the second insurance policy information to both XXXX XXXX XXXX and XXXX to cover my bases. I received an email confirmation that my information was being reviewed. I proceed to get the same EXACT email in both XXXX and XXXX. I, once again, submit the second policy information. Flash forward to XXXX, I see my balance on my loan increased to {$7000.00}. This puzzled me because I've been making payments of {$130.00} each month since XX/XX/XXXX. I initially call XXXX support line, but given that it's the weekend, I am not able to speak with a representative. I proceed to send a message inquiring about the increase in my loan via my XXXX account. I ask them to please call me to discuss the situation. However, I don't receive a call. I only get the EXACT same message asking me to provide insurance verification. Confused, because I've been doing this process for months, I finally am able to get in touch with a rep on XX/XX/XXXX. When talking with her, I was told I did not have full coverage insurance for the past several months, so they added a fee close to {$800.00} to cover the cost. I quickly correct her and tell her I do or I wouldn't have been approved for the loan. The new insurance I've been submitting is no longer active anyways, since I had ended the policy after my 90 day period. Everything should be squared away. She then tells me that the insurance I've been submitting proof of for the past several months is not the policy they are referring to. She mentioned my XXXX policy didn't have full comprehensive coverage and that's why they are charging me. Even more confused and upset, I ask why was I notified about this almost 6 months to the day of getting approved for my loan? How was I even approved and why did the original rep signing my contract say " everything looked good ''? Why was I not notified sooner than XXXX? Why didn't any of the emails being sent ever specific WHICH insurance policy was the one they were referring to? She then says that sometimes insurance verification can take longer than anticipated, so they approved for the loan with the assumption everything was good. I was also told that it appears there was a glitch in the system and my insurance didn't start getting flagged and start sending out the notifications until XXXX based on how it was logged in the system. When I continued to ask why none of the emails or letter statements specifically stated the issue was with the XXXX insurance policy versus the other one, she had no answer to give me. No one chose to reach out to rectify the issue or let me know that I was sending the wrong information. I spoke with my car insurance company to understand the actual coverage I had and it appears to them they signed me up under " Full Minimum Coverage '', which apparently does not meet all the requirements of comprehensive coverage that XXXX was needing. Immediately, I upgrade my insurance and send the correct documentation over to XXXX to rectify the issue. If I was made aware of this earlier and was communicated to properly via specific channels, I could have easily remedied this insurance issue the moment it was found out. However, do to the poor communication, delayed timing, and system glitches on their end I was left in the dark and am now stuck with a bigger loan that I originally applied for.

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