Complaints

• Initial Complaint

  12/27/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  I co-signed a secured Auto loan for my son ****** ******* with Cannon Federal Credit Union on 07/14/2022. My son is in the Air Force and stationed at ****** ***. The amount of the auto loan being financed through CFCU was $69,919. This car was located in Seaside CA being sold by **** ***** *****. CFCU validated the car using a ****** report they ordered on 07/13/2022. The Credit Union (CFCU) required they receive the title/vehicle before the actual funds were wired to the dealership. We were told this is standard practice and shows that both parties are agreeing to purchase and sell. The car loan was for a 2012 Nissan GT-R. CFCU stated they would send the dealership, **** ***** *****, “drafting instructions” through their wire channel as they routinely do. Instead of sending drafting instructions CFCU wired the entire amount of the loan to the sellers Chase business account on 07/14/2022 without regard to adhering to their own requirement of having the title/vehicle in CFCU’s and ****** *******s possession and without our knowledge. On 07/19/2022 we spoke to the seller at **** ***** ***** and determined this was almost certainly a scam as he failed to provide us with shipping updates on the car. The following day my son (******) called CFCU to report this as fraud and was told to come to CFCU the following day. The following day 07/21/2022 ****** met with a loan processor and stated this is fraud. He was told that CFCU could cancel the loan as only drafting instructions were sent. This was verified multiple times during their 6 min conversation. ****** used his phone and recorded the 6 minute conversation he had with CFCU that day. In the following weeks CFCU stated they made an exception to their policy and wired all of the funds to the seller as ****** demanded. In short CFCU stated ****** knew the funds would be directly wired and denied any wrong doing despite hearing the voice recording and not having the title/vehicle as collateral for the secured loan.

  Business response

  02/07/2023

  We have researched our member's concern and on December 16, 2022 to discuss the matter. Our member was satisfied with the discussion and plan going forward.

  Customer response

  02/07/2023

  Complaint: ********
  
  I am rejecting this response because:
  Cannon Federal Credit Union processed and handled this auto loan outside of their usual and customers process. They have the vehicle we interested to purchase as the collateral for this loan which is not the case. CFCU failed to secure the auto title before releasing funds for this $69k out loan. They have conveniently shifted all blame for this fraudulent auto loan onto Carter and me. CFCU clearly stated that no funding of the loan until the car/title (collateral) was received. This auto file has been provided to the BBB. CFCU members involved in this loan have all backed up each other up to not have to take responsibility for their internal mistake. CFCU has written their narrative to fit their truth. Unless they are willing to come to a mutual resolution, we plan to expose their business practices to the military community they serve and more  

  
  
  Regards,
  
  ******* *******

   

  [To assist us in bringing this matter to a close, the consumer must give a reason why they are rejecting the response. If the consumer does not provide a reason the complaint will be closed Answered]

  Business response

  02/15/2023

  The Chairman of the Board of Directors will contact this member directly to discuss the matter.

  Customer response

  02/17/2023

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau®:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and look forward to speaking with a member of the board of directors. 

  Three business days have passed since CFCUs response and I have not received any form of communication from a member of the board of directors for CFCU or from any CFCU employee.

  
  Regards,
  
  ******* *******

   

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