Consumer complaint received 2025-09-02 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: AMERICA FIRST FEDERAL CREDIT UNION
State: UT

Complaint narrative:
Summary of Issue : I am a XXXX borrower with no income for several years. I have a pending XXXX application through the Social Security Administration, supported by my XXXX law firm. In XX/XX/year>, my credit union received documentation from my attorneys showing proof of the pending application and expected timeline ( 78 months ). Despite this, they have treated me unfairly in my requests for hardship assistance and engaged in repeated unauthorized and abusive practices against me, my son XXXX XXXX and his small business XXXX XXXX XXXX XXXXXXXX. 

Key Facts ( Chronological ) : I applied for hardship on my mortgage, HELOC and credit card. Regarding the HELOC, the credit union initially offered only 3 months of interest-only payments in the amount of {$410.00}. I accepted and made those payments timely. 

After 3 months, they demanded full regular payments again. I reapplied for hardship, but they denied me without providing a valid reason and after repeated vague and ambiguous communication i.e refusal to provide clarification to direct plain simple questions and/or provide vague and ambiguous answers that would confuse any reasonable person who is not suffering from mental and cognitive disabilities. 

I appealed. In response, they demanded about {$2000.00} upfront within a few days as a condition to allow another 3 months of interest-only payments ( $ XXXX ). I explained that I can not pay {$2000.00} but can continue to pay {$410.00} per month ( with help from my son ). They refused and threatened foreclosure. 

They closed my credit card, sent it to collections, andwithout authorizationtook {$4000.00} from my adult sons personal account to cover my credit card debt. My son XXXX is XXXX, he is not a borrower or guarantor on my debts. 

They also repeatedly froze my sons business bank accounts XXXX XXXX XXXX XXXX XXXX ). Their stated excuse was that I was a joint owner, which is false. I was only the registered agent for the LLC. My son is the sole member. 

After the first freeze, we contacted them and reminded them that I was no longer a member of the LLC as per the amended articles of XXXX  they had and the official transfer of ownership to XXXX about 2 years earlier. 
They froze the accounts a second time anyway. We again cleared it up and received a signed assurance it would not happen again. 
Despite this, they froze the accounts a third time, disrupting my sons business. 
I am concerned the credit union might be retaliating. 

I have formally requested assistance under federal loss mitigation rules in writing, but the credit union continues to pressure me to accept their {$2000.00} upfront demand under threat of foreclosure. 

Why This Is Unfair/Abusive : They are denying reasonable hardship assistance despite documented disability and pending benefits. I believe that per se violates the Americans with Disability Act ( ADA ) federal statute. 

They are conditioning relief on an impossible demand ( {$2000.00} in 4 days ), effectively setting me up for foreclosure. 

They closed my credit card and reported it to collections while my hardship application was pending. They have also recently closed all my personal accounts after unlawfully freezing them for months, then lifted the freeze before stating falsely that the closure of my accounts is because of my dissatisfaction. I have never informed them about any dissatisfaction that would warrant closing my personal accounts. 

They egregiously took {$4000.00} from my sons personal account without authorization, even though he has no liability on my accounts. 

They repeatedly and wrongfully froze my sons business accounts, even after signing written agreements that I was not on the account and that they would not do so again. 

Their conduct appears retaliatory and discriminatory against me and my XXXX. I am very concerned this Complaint may cause further retaliations but I have been given no other reasonable choice by the bank.

Company response to consumer: Closed with explanation