Consumer complaint received 2025-06-14 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: FIRST TECHNOLOGY FEDERAL CREDIT UNION
State: LA

Complaint narrative:
Consumer Complaint CFPB Complainant : XXXX XXXX Address : XXXX XXXX XXXX, XXXX XXXX, LA XXXX Phone : ( XXXX ) XXXX Email : XXXX Company : Digital Federal Credit Union ( DCU ) Account : Auto Loan Originated XX/XX/XXXX Complaint Summary : I am filing this complaint regarding an auto loan I obtained from Digital Federal Credit Union ( DCU ) in XX/XX/XXXX. The original loan terms were : Loan Amount : {$20000.00} Term : XXXX  months Interest Rate : XXXX  % XXXX Monthly Payment : {$320.00} Expected Interest Total : Under {$1000.00} Shortly after the loan was issued, DCU claimed they had not received the vehicle title. As a result, they unilaterally increased my interest rate to XXXX XXXX, which dramatically raised the total cost of the loan and extended the repayment well beyond the original XXXX agreement. I was never provided with a proper cure period or dispute process, nor did DCU offer meaningful support to resolve the title issue at the time. 



It is important to note that the absence of the vehicle title did not constitute a default under the loan agreement. I continued making my monthly payments on time and had no control over the title delivery process, which is typically handled between the dealer, XXXX, and lender. My contract did not state that failure to receive the title would justify a default or an interest rate increase. 



Furthermore, during my attempts to resolve this issue, a DCU representative acknowledged that if they had received the title, they might have been able to revert the loan to its original terms and issue a refund for the excess interest paid. This statement confirms that DCU understood the situation could have been remedied and that the change in terms was not irrevocable. Despite this, no corrective action was taken, and I was left paying a dramatically inflated loan. 



As of XX/XX/XXXX, I had paid over XXXX  years on a loan that was originally scheduled to be paid off in a little over XXXX  years. I have now paid well over XXXX  % of the original loan amount, far more than what would have been required under the agreed terms, yet DCU continued to demand payments and reported negative items to my credit history. 







Requested Resolution : I am requesting a full and fair resolution based on the original loan agreement. Specifically : XXXX. Recalculation of the loan under the original XXXX  % APR over the XXXX term to determine the actual amount owed. 

XXXX. Refund or credit for any overpaid amounts beyond the recalculated obligation. 

XXXX. Removal of all negative credit reporting related to this loan, particularly those reported after I had already overpaid under the original agreement. 

XXXX. Written confirmation that the loan is fully satisfied and that no further payments are due. 



This resolution reflects the agreement I originally entered into and accounts for the financial harm caused by the unjustified increase in interest, prolonged loan term, and the lack of a clear process to resolve the title issue which was acknowledged by DCUs own staff as something that could have been corrected. 



Sincerely, XXXX XXXX

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