Tuesday, May 19, 2020

MidFlorida CU's Car Repossession Gets Unwelcomed Media Scrutiny

An investigative reporter for WFLA News Channel 8 was called about Lakeland, Florida-based MidFlorida Credit Union's repossession of a nurse's car.

The nurse was told her car was repossessed due to missed payments. But she was not able to get answers to her question about the missing payments until the reporter got involved.

The car was flagged for repossession by the $4.6 billion credit union because her payments were short by 66 cents each month.

The credit union agreed to pay the $400 repossession fee and to have the nurse's car towed to her driveway.

A spokesperson for the credit union stated that before repossessing a vehicle, the credit union will attempt to contact the member by phone, mail and even door-knock service to make payment arrangements.

The nurse stated she was never contacted by the credit union.

Read more.



2 comments:

  1. The back office for many banks and credit unions are often simple "box-checkers"-- they are cheap operating leverage for the front-office. However, the back-office can also serve as an early warning signal to the front-office.

    The front office and executive leadership need to be mindful of the fact that these automatons are not in a position generally to consider reputational or other risks that the back office are neither trained on or empowered to own with any level of discretion (and this is the fault and liability of the front-office).

    The C-suite leadership needs to find ways to encourage questions and escalation for events that even the back office would view as non-commercial, idiotic and even potentially illegal in certain situations (remember robo-signing?!)

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  2. Sounds like something Wells Fargo would do

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