Consumer complaint received 2025-11-05 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: LAKE MICHIGAN CREDIT UNION
State: MI

Complaint narrative:
To Whom It May Concern : On or around XX/XX/XXXX, I purchased a XXXX XXXX XXXX, which I financed through Lake Michigan Credit Union ( " LMCU '' ). LMCU has an online portal App that allows customers to manage their various accounts through the credit union ( i.e. checking, mortgage, auto loans, etc. ). After securing the loan on the XXXX XXXX, the loan appeared on my LMCU online portal. Each month, it reflected the amount owed- which automatically came out of my checking account. 

On XX/XX/XXXX, my wife and I purchased a XXXX XXXX XXXX XXXX from XXXX XXXXXXXX XXXX XXXX, XXXX We again financed through LMCU . Per the finance agreement, my wife and I agreed to monthly installments of {$580.00} beginning XX/XX/XXXX. We provided our LMCU account number and elected for monthly withdraws. LMCU sent a letter on XX/XX/XXXX advising that our loan payment is {$580.00} and due XX/XX/XXXX. The letter further states : " Pay online by registering for LMCU Online Banking at LMCU.org. '' My wife and I were already registered for LMCU Online Banking and the XXXX XXXX loan appeared in our online portal App. 

When my XXXX loan was set up through LMCU, I was not required to take any additional steps to set up automatic withdraws from my checking account. Based on our past experience with the XXXX purchase ; communications at the dealership ; the letter from LMCU ; and LMCU automatically linking the XXXX XXXX to our online banking - my wife and I had no reason to believe that our Grand XXXX loan was not set up for automatic withdraws. 

It was not until my wife and I started receiving alerts from the credit bureaus that our credit scores had dropped were we alerted to a late payment on our XXXX XXXX loan. Despite having over {$30000.00} in available funds at LMCU at the time, LMCU did not apply any payments to our XXXX XXXX XXXX. Rather, they reported us to the credit bureaus and assessed late payments. 

My wife and I have * never * missed an auto loan, mortgage payment, etc. After receiving notice of the late payment, I immediately paid the outstanding payments plus an additional {$5000.00}. I then reached out to LMCU via their online banking portal and advised that this was a misunderstanding. I informed them of the situation and their miscommunication- how it was misleading. LMCU then gave me complex instructions to set up automatic payments through their online portal ( steps that I did not have to take with the XXXX loan ). I inquired about the next due-date, because on XX/XX/XXXX, the XXXX XXXX loan on their online portal reflected " Payment Due : {$0.00} ; Date Due : XX/XX/XXXX '' I was not given an answer. 

As a direct and proximate result of LMCU 's seriously misleading lending practices, my wife and I have been directly harmed because, in addition to the emotional distress of dealing with this after our son being born on XX/XX/XXXX, our credit scores have dropped XXXX pts. 

I reached out to LMCU with a goodwill letter respectfully asking that they remove their late-payment reporting to the credit bureaus - which they advised that they can not do. I advised that this missed payment was in dispute, and per FCRA requirements, they have not marked the missed payments as disputed.

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