Consumer complaint received 2026-06-23 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: FourLeaf Federal Credit Union
State: NY

Complaint narrative:
XX/XX/year> Re : Formal Complaint Against FourLeaf Federal Credit Union XXXX XXXX XXXX : To Whom It May Concern : I am filing this formal complaint against FourLeaf Federal Credit Union concerning the mishandling of a {$460000.00} payment intended for my Home Equity Line of Credit ( HELOC ), resulting in improper finance charges, delinquency notices, and continued collection activity despite the credit union having possession of my funds. On XX/XX/year>, I delivered a certified/bank check in the amount of {$460000.00} to FourLeaf Federal Credit Union for the purpose of paying down or satisfying my HELOC obligation. During the transaction, the teller initially informed me that the payment could take approximately XXXX weeks to clear. I immediately objected because the payment was being made by certified/bank check representing guaranteed funds. The teller then consulted with a branch manager, who confirmed that the funds would be immediately available and would go straight in. Based upon those representations, I reasonably believed the payment would be promptly and properly applied to my HELOC account. Despite these representations, XXXX failed to apply the payment to the HELOC. Instead, the {$460000.00} was improperly deposited into a savings account, where the funds remained for approximately XXXX weeks while interest and finance charges continued to accrue against the HELOC balance. As a result of XXXX failure to properly apply the payment, I later received a delinquency/default notice dated XX/XX/year>, claiming that my required loan payment had not been made and demanding payment of {$3400.00}, despite FourLeaf already possessing the {$460000.00} since XX/XX/year>. After receiving the delinquency notice, I was forced to physically return to the FourLeaf branch and personally request that the {$460000.00} be transferred from the savings account and applied to the HELOC. At that time, I met with a customer service representative and explained the situation in detail. The representative reviewed the account and agreed that interest should not have continued accruing after XX/XX/year>, because FourLeaf had already received and possessed the funds. While I was present, the representative contacted FourLeafs central administration department by telephone and explained the matter. I was advised that someone would contact me or email me regarding correction of the account and the improper charges. Despite these assurances, I never received any follow-up communication, explanation, or resolution from FourLeaf. Only after my in-person request at the branch was the {$460000.00} finally transferred from the savings account and applied to the HELOC on or about XX/XX/year>. FourLeaf now claims that I still owe approximately {$2800.00}, consisting primarily of finance charges and accrued interest that resulted solely from the credit unions own internal mishandling of my payment. I dispute these charges entirely. Had FourLeaf properly applied the funds when received on XX/XX/year> : the HELOC balance would have been substantially reduced immediately ; additional interest and finance charges would not have accrued ; the account would not have been improperly treated as delinquent ; and I would not have been subjected to unnecessary collection activity and repeated efforts to correct FourLeafs error. This matter is especially concerning because : FourLeaf had possession of guaranteed funds beginning XX/XX/year> ; FourLeaf management expressly represented that the funds would be immediately available and would go straight in ; FourLeaf employees later acknowledged that interest should not have accrued after XX/XX/year> ; The delay resulted entirely from FourLeafs internal handling of the payment ; I received a delinquency notice despite FourLeaf already possessing the funds ; and FourLeaf failed to follow through after promising further communication and resolution. I respectfully request that the NCUA investigate this matter and require FourLeaf Federal Credit Union to : Reverse all improperly accrued interest, finance charges, penalties, and fees arising after XX/XX/year> ; Correct any internal delinquency or adverse reporting associated with this error ; Provide a complete accounting explaining how the remaining balance was calculated ; Confirm that the account was improperly handled after receipt of the XX/XX/year> payment ; and Ensure that federally chartered credit union servicing and payment processing standards were properly followed. Attached are supporting documents, including : Savings account statements ; HELOC statements ; Deposit and transfer receipts ; Delinquency notices ; and Documentation showing that the funds remained in savings rather than being applied to the HELOC. Thank you for your attention to this matter. I request written confirmation that this complaint has been received and investigated.

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