Credit Union Cuts Rates RETROACTIVELY To Beginning Of Month

Friday, October 1, 2010 - 8:13 AMFirefighters Community Credit Union - Details

Firefighter's Community Credit Union recently cut the rates on their rewards checking account from 4% to 3%. As of Friday, 9/24, the rate on the website still showed 4%. On Tuesday 9/28, the rate was 3% on the rates page (and still had 4% in the text on the checking account page).

When checking my interest today, they only gave 3% for the entire month. Are they allowed to do that? They say they are. Who can I complain to? What is to stop them from cutting the rate to 0% at the end of one month and making it retroactive?

edlisal13 posts since
Sep 8, 2010
Rep Points: 37

Edit | History

This post applies to all states.
I'm making this applicable to all states since it isn't about the rate cut at FFCCU as much as the fact that it is retroactive which might be happening elsewhere.

Quick
Summary

1. Friday, October 1, 2010 - 4:16 PM

One important thing to note regarding this credit union is that it's not federally insured by the NCUA. It only has private insurance through ASI.

Thus, I believe its main regulator is the Ohio Commerce Division of Financial Institutions. Here's the link to their page for filing complaints against financial institutions.

Ken Tumin5,343 posts since
Nov 29, 2009
Rep Points: 121,333

2. Saturday, October 2, 2010 - 1:02 AM

Please let us know what you find out.

tightwad27 posts since
Jun 7, 2010
Rep Points: 853

3. Saturday, October 2, 2010 - 11:38 AM

In 2006 we purchased a CD from United Services Credit Union in North Carolina. The benefits were that you would be able to add deposits to it anytime during the 2 year CD. They changed that benefits 2-3 weeks after we opened it and said all deposits had to be done within a month or two as I recall. We wrote to the state and nothing was done. Said the credit union was within its rights.

Ally566 posts since
Jan 16, 2010
Rep Points: 1,655

4. Monday, October 4, 2010 - 12:27 PM

Update: I'm being told that the Board of Directors met last week and decided to change the rate. The people that I've talked to so far don't seem to think that doing it retroactively is wrong. I'm waiting for a call back from the CEO of the credit union to discuss the matter before I escalate to filing a complaint (thank you Ken for the link!). I'm going to ask where in the disclosure it states that rate changes may be made retroactively (the people that I have talked to so far just keep saying that rates may change at any time, but didn't understand that I don't have a problem with that part of it).

As soon as I fund my PenFed 5% CD in January, this will likely be the first rewards checking account to be cancelled.

(Ken, yes I am aware that it is not NCUA insured. I am ok with the risk I am taking on that matter, but thank you for pointing it out just in case.)

Yes, I will post the final resolution here. Thank you to everybody for your comments so far!

edlisal13 posts since
Sep 8, 2010
Rep Points: 37

5. Monday, October 4, 2010 - 12:27 PM

Sorry, not sure why it duplicated itself.

edlisal13 posts since
Sep 8, 2010
Rep Points: 37