In December, Valor credit union stopped allowing add on deposits to their 7 year add on cd. A lot of us complained. Today I received notice there was a certified letter from Valor for me to pick up at the post office. From https://www.bogleheads.org/forum/...5259&p2810970#p2810970 it appears Valor will allow one add on deposit, 25k maximum, before March. And you must sign a release form to not pursue further action against them. Good deal or not? I wonder what happens if you don't sign the release form?

The mess has the whiff of a class action suit looking for a place to happen and they are trying to head it off with this latest action. Valor knows full well that what they have done is wrong, but hope that this token offer will appease members who brought their actions to the attention of the CFPB and NCUA. Why else would they want a signed release? Realistically though the only ones who make money on class action suits are the attorneys and maybe the lead plaintiff. Also, this type of action, even if it were successful, doesn't guarantee they won't pull more tricks out of their bag to hammer their members before they inevitably go under.
Finally, the Bogleheads post included a mention of a "no discussion of this settlement" clause in the Valor offer. Some friendly advice, if you are thinking of accepting, don't forget they are probably monitoring DA, Bogleheads and other sites where the matter is being discussed.

I don't know what I'll do with whatever they may offer me. But I am wary of them trying other tricks down the road. They have a new CEO and I'm willing to give him a chance to make things right. But he has to prove himself through actions, not words.

If only a handful of people complained, not expecting anything, and are offered the chance to make a one-time additional deposit of $25K max, their exposure is limited to $25K times the number of people who complained. If all of a sudden they are bombarded with "I want that deal too" requests from everyone who got one of the add-ons, their exposure is now several orders of magnitude greater. They are right back where they started, having to deal with taking in potentially $25K from each member with an add-on CD, not as bad as if each member were allowed to add additional funds to top off deposits across their accounts to $250K, for example.
But as you say, you do not know what is in your letter, so you have not discussed your specific offer, which may or may not be like that discussed on Bogleheads.



Anon1234, Your comments make sense, are informative and spot on. Thanks for posting them

That is the worst conduct regarding CDs I have ever seen from any bank or credit union. As far as I see it, this offer is an admission of guilt and liability! Use it! Someone, really, should sue their asses off, demand damages that will outright bankrupt them for such conduct. Regulators should bee all over this kind of conduct -- where are they? Regulators should be bringing criminal charges against the executives running this place!



I don't know what I'm going to do with the release form. I don't want to sign it and give up my rights. Here's the thing. Even if Valor was allowed to change the terms (which I don't believe) they did not abide by an NCAU regulation to provide at least a 30 day notice prior to the change. That's a clear violation.
I understand what they offered, a 7 year add on certificate with unlimited deposits was foolish. But allowing a one time 25K deposit to give up all rights isn't enough. If they offered a say 100-150K cap on all accounts I'd sign the release. But that's just me.