Consumer complaint received 2025-04-18 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: STATE EMPLOYEES CREDIT UNION
State: NC

Complaint narrative:
Whom It May Concern, I am writing to formally lodge a complaint regarding a distressing and unacceptable incident involving the mishandling of a financial transaction by State Employees ' Credit Union ( SECU ), which has resulted in significant financial and emotional hardship for my family. This issue highlights troubling deficiencies in your institutions operational security, employee conduct, and responsiveness, all of which demand immediate attention and resolution. 

Incident Overview : On Monday, XX/XX/XXXX, I contacted SECU after initiating a stock sale through XXXX. During this process, I was shocked to learn that funds were being directed to an old, unauthorized account ending in XXXX, which had not been associated with me since XXXX. I informed the SECU representative that this account belonged to my ex-partner and that I have no relationship or communication with them. I explicitly requested that the funds be blocked, reversed, or flagged before any deposit could take place. I was reassured that if my name was not on the account, the transaction would not be processed. 

On Tuesday, XX/XX/XXXX, after confirming with XXXX that the funds were still in route, I again contacted SECU to ask if they saw any pending deposits. I reiterated the urgency and made it clear that the funds must not be deposited into the unauthorized account. I was told there was no visible incoming activity at that time. 

On Wednesday, XX/XX/XXXX, XXXX confirmed the funds were being processed and nearing completion. I immediately contacted SECU again to attempt to halt the transaction. Despite the urgency, I was again told no incoming funds were visible in the system. No action was taken. 

On Thursday, XX/XX/XXXX, I was informed by XXXX that the funds had been deposited. I immediately called SECU. Initially, I was told by a representative that the funds would not be accepted because I was not on the account. However, another representative confirmed that the funds had in fact been deposited. She stated she would email a request to have them returned to XXXX. 

Shortly thereafter, my wife and I called back to escalate the issue. We asked to speak to a manager. We were informed that the funds had already been transferred into another account, despite the fact that earlier that day, they were visible and returnable. When asked why no hold was placed or further action taken to prevent this, we were asked, Do you think shes going to give the money back? We answered no. The representative contacted the individual to request for the funds to be returned. She said shes not giving the funds back. 

Despite the funds still being visible in the system, we were told theres nothing we can do. After an hour of frustration. We then asked her to speak to her supervisor. We were then transferred to XXXX XXXX XXXX, who identified himself as Branch Manager. After an hour and a half of discussion, XXXX XXXX confirmed with us to obtain a letter from XXXX and had them fax over a letter. We were told initially before speaking to XXXX XXXX there was going to be a request for these funds to be sent back to XXXX and for 3 hours these funds were never requested at any point. We called XXXX as instructed with XXXX XXXX on the phone and while they were trying to process a letter the funds had been moved completely from the bank and could not be recovered. 

At this point, critical time had passed, and the window to recover the funds had closed, despite our multiple efforts and the assurances we were previously given. 

Your staff were made aware on multiple occasions that the destination account was not associated with me, and that the funds in question were not to be released under any circumstances. Despite these repeated verbal warnings, SECU failed to act with due diligence to stop, investigate, or flag the transaction even after acknowledging that the account did not bear my name. 

As a financial institution, SECU has a fiduciary duty to exercise reasonable care in managing and protecting customer transactions. The failure to do so in this case constitutes gross negligence, and as such, SECU is liable for the full amount of the funds lost, including any resulting damage incurred by our family due to this error.

Furthermore, the funds were still visible in the system at SECU and retrievable at the time we made our requests. SECU staff had not only a clear opportunity but also the responsibility to place a hold, reverse the deposit, or escalate the matter for urgent handling. The failure to act allowed the unauthorized recipient to withdraw or transfer the funds, which could have been prevented with appropriate internal controls.

We request immediate reimbursement of the lost funds and a written response outlining SECUs actions and proposed resolution.

Summary of Concerns : Failure to act on repeated, urgent warnings that funds were being misdirected to an unauthorized account.

Contradictory information provided by representatives regarding account access and incoming transactions.

Negligence in failing to place a hold or initiate proper escalation procedures.

Breach of trust through misleading claims of management authority and false reassurances.

Lack of urgency and due care, despite being notified that the transaction involved financial harm, including the potential derailment of our home closing.

SECUs failure to protect my assets and take timely actiondespite multiple documented requestsdirectly enabled the loss of my funds. At no point we were treated with no care or seriousness that a situation of this magnitude warrants. The harm caused has been both financial and emotional.

Company response to consumer: Closed with explanation