Consumer complaint received 2025-01-09 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: BANCO POPULAR DE PUERTO RICO
State: PR

Complaint narrative:
Banco Popular Puerto Rico ( BPPR ) is using the statement below in their disclosure and agreement for new Demand Deposit Accounts XXXX XXXX ) without explaining to the elderly population or any other customers during the onboarding process ( for cases when elderly include a cosigner for emergency purposes into the account ), that in the event of a cosigner failed to fulfill their consumer debt obligations they will apply the right to offset on consumer loans products when late payments occur for cosigner obligations without any notice. 


I was a cosigner on a XXXX account from a former friend who is XXXX XXXX XXXX for emergency purposes only. Last XXXX due to my job income was reduced more than 50 %, I was not able to make XXXX payments for an active consumer loan, the current loan is only in my name. BPPR without any notification to the primary signer ( my former friend ) or myself ( the cosigner ) made a debit to the XXXX account. Wording reference included under the transaction was payment atraso prestamo. 
Current consumer loan is under my name solely and was disbursed prior to the opening of the aforementioned account. My former friend closed the account XXXX weeks after the incident and ended our 25 years friendship since she understood I used the account without her permission. 
Prior to closing the account my former friend visited XXXX XXXX branch to request the reason for the unauthorized account debit since she understood it was a bank error. She identified the debit on her monthly account statement received by mail on XX/XX/XXXX2024. Immediately she went to the XXXX XXXX XXXX and customer service representative ( XXXX XXXX XXXX XXXX told her verbally that the cosigner of the account XXXX XXXX had a loan with BPPR and it was behind XXXX payments. 
She called to my cell phone extremely nervous and informed me the incident. Due to the events her XXXX XXXX increased and a messenger escorted her home. 
After the branch incident she called me and informed that the branch employee told her I was behind my loan payments and due to the unfortunate event if she died that day, I was going to be the main responsible of her death since I betrayed her trust and use her account without her permission to cover my late payments, that she wanted her money immediately and that she explained everything to her church XXXX  in case she dies. 
I explained her that I did not authorize or made any of the payments with BPPR using her account since it was opened, that if was a bank error since neither I was aware of the debit transaction and that I will verify the incident immediately. 
She is XXXX XXXX XXXX and does not understand banking terms. I returned her the money immediately as per her request ( the day after the incident ) the debit was made on XX/XX/XXXX24 for {$940.00}. 
I made XXXX claims to BPPR for privacy violation, elderly abuse using funds from a customer savings to pay other debts, Unfair, deceptive and abusive practices and for not explaining customers during the onboarding process that they will apply the right to offset to a personal loan without any notice to the primary account signer in solely debt. 
I have other current financial responsibilities with BPPR ( an auto loan and a credit card ) also affected due to my past situation and they did not apply the right to offsets to the auto loan, however they alleged that the reason they made the debits for the consumer loans was because they werent able to reach me on the phone or by mail. 
Every single time when they call me during the collection efforts, I explained them the reason for my late payments in all of the products and gave the employee an expected payment date. XXXX never offered me a payment reduction plan or any other solutions when I was behind my payments, I was the one who requested them if they had any payment plans or any other short-term solution due to my financial crisis. 
After my request prior to the response of my XXXX claim, they granted me a XXXX extension offer charging me another XXXX dollars for the plan included to pay after the consumer loan maturity date. They explained that for the auto loan since I owe less than $ XXXX no offers were available. For the auto loan payments were also behind in the past however they never applied the right to offset. 
After my XXXX claims they stated that due the clause ( included above ) they can share verbally at the branch with the former signer of the XXXX account my credit obligations only under my name, late payment history status ( even though the primary signer is NOT included in my consumer loan ), and that they can use a wording on the debits identifying the transactions as a late payments from another person. 
I requested them status of disciplinary actions regarding the employee who shared my personal credit information with my former friend, and let them know that they are conducting unfair practices to the elderly population in XXXX XXXX without any notice using the retirement funds to cover others debts. 
Also informed them how much this situation affected my health and personal reputation and that as a minimum standard I requested them to condone my personal loan since due to their error I lost my friendship of almost 25 years and my privacy rights were violated regarding credit history and late payments history shared without my authorization. They said they are not in noncompliance. 
I requested them that an explanation regarding what they mean or what covers the phrase included in the new account disclosure unless otherwise is prohibited by law, if that phrase covers privacy issues and they simply ignored my second claim and send me a copy paste including the response regarding my 1st claim. Also the second claim response contradicts the 1st one when they acknowledged that they recognized they need to improve some issues after my claim. 
I let them know I will make a claim to all the respective bureaus and will take legal action to clarify the matter since I will exercise all my rights as a consumer. I want to know if their current Privacy practices ( Reg P and GLBA ), Collection efforts ( UDAAP ), Fair Credit Reporting Act are as per the law and regulation requires. 
I want to clarify if the term account included in their personal account disclosure and agreement can be applied to a credit/personal loan obligation? 
I want to know if customer payment late history information can be share with the primary account signer when the primary signer has nothing to do with the loan, and loan was originated prior to the account opening? 
Should I be reimbursed as a consumer for my privacy violations per day? 

Thanks Consumer loan ending XXXX

Company response to consumer: Closed with explanation