The Tampa Bay Tribune is reporting on Mike Jordan's nearly yearlong bureaucratic nightmare with Achieva Credit Union and the National Credit Union Administration (NCUA).
The story concludes that his experience "changed his opinion of credit unions as nonprofits looking out for the little guy."
The issue dealt with an "ädd-on" certificate of deposit (CD) issued by Achieva Credit Union that advertised that money could be added onto the CD. When Mike Jordan tried to add money the second time to the CD, the credit union refused.
Mike Jordan filed a complaint with NCUA in July of last year and proceeded to get the regulatory run-around.
However, he kept pursuing the issue and finally received a letter from NCUA dated May 30 that stated Achieva's disclosures were "not clear and conspicuous — a violation of the Truth in Savings Act." The credit union was instructed to correct the defective notice and to work with Jordan to find an amicable solution.
But it was only when contacted by the newspaper did the credit union management state that Mike Jordan would be reimbursed for the lost interest income.
Read the story.
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Not very nice of Achieva. Heard that about them.
ReplyDeleteFirst of all, the member could not have a "CD." Credit unions do not offer "certificates of deposit." That is a product only offered by banks. Credit unions offer "share certificates" as dictated by NCUA R&R Part 707 (TIS).
ReplyDelete"First of all..."
DeleteIts a share certificate not a CD.
Ok.
Then?
That makes it ok?
That all you got?
You are incorrect. State chartered credit unions (at least in some states) can offer certificates of deposit and pay interest instead of dividends.
DeleteYou sound like a lawyer.
ReplyDeleteAm not. Just play one on television.
Delete