NO POD CHANGES AFTER CD OPENING AT UFCU!!!!!

sjh13 | Feb 28, 2023 | 27 posts since 2010

I'm freaking out. I opened a 5% CD at University FCU online, and was not given the option to add POD's. I called in and was told by a rep that I could add them later, that all I had to do was send in a secure message. I did so, and unbelievably, this is what I got back:

"If you are adding the new beneficiaries to your CDs, they cannot be added until the date of maturity, 5/9/2024 and 2/24/2027. I see that Frank had been added to only the XX CD. For clarification, do you want to add the names listed in your email below on a certain CD or on your account too? Since the CDs have already been opened, beneficiaries cannot be added until the date of maturity. If you wish to add them now, we would have to close the CD, assess penalties, and then open the new CD adding the beneficiaries. Beneficiaries need to added at the time the CD is opened."

I mean, WOW! I called in, and was told the SAME thing. The last disclosure I have from them clearly states I can add or change my POD's. The reps are saying this policy was changed last year. I am trying to get a copy of that disclosure, but so far haven't gotten it...and it's NOT on the website.

I'm freaking out. If I can't cover my CD's with POD's, I'll have to close my account and take the loss. It's only been open a week, so I might lose principal over this. In addition, there also seems to be a problem now with adding Charities as POD's, it appears this may no longer be allowed.

4

betaguy | Feb 28, 2023 | 181 posts since 2022

1 cd, 2 maturities? I think there's some relevant info missing to comment effectively.

1

sjh13 | Feb 28, 2023 | 27 posts since 2010

Sorry for that confusion, I have two CD's there. The one maturing in 27 was the new 48 month one that has that lovely 5% return....but I ended up closing it. Then more fiasco ensued. They refused to allow me to transfer the money via a shared branch...

1

buckeye61 | Feb 28, 2023 | 454 posts since 2011

Ask them if they'll waive the EWP due to the mix-up!

8

sjh13 | Feb 28, 2023 | 27 posts since 2010

They did that, and I closed it. but then they blocked my ACH to get my money out, and refused to allow me to transfer the funds to my shared branch CU....they're a hot mess.

2

GH1 | Feb 28, 2023 | 1,058 posts since 2017

I am sure calls are recorded. Tell them check all calls associated with your account

3

sjh13 | Feb 28, 2023 | 27 posts since 2010

They did, and admitted I should have not been told I could add a POD. I closed the account, but then they refused to allow me to get my money out of the Share account through a shared branch. They limit shared branching to $25K...They also limit ACH pulls. They said I could only wire my funds out.

1

MY2CENTSWORTH | Feb 28, 2023 | 440 posts since 2016

sjh 13, I think I'd be on the phone asking to speak to someone of authority at UFCU right away. In my experience many FI's don't even have adding a beneficiary as part of the certificate opening process and can usually be done any number of various ways after the acct. is opened. I don't know anything about the UFCU certificate and the process that they may utilize, but if it were me I would be on the phone. Good luck!

4

sjh13 | Feb 28, 2023 | 27 posts since 2010

Thanks, I spent the better part of the day doing that, but it was to no avail. They did agree to waive the EWP and close the account however, after a LOT of escalating. They know it was their screw up and they still have not sent the alleged "disclosure" that states the inability to add a POD. Then they refused to release the funds to my shared branch, and wouldn't let me ACH the entire amount out. Only wires for over a certain amount.

1

arthurtony | Feb 28, 2023 | 24 posts since 2016

I posted my comment under your review. I was confused about where to post - I should have commented here. Read the comment under your review and let's see if we can get something changed here, Think it through before you take a penalty hit. After speaking with 5 people there including management, they don't seem helpful at all. I will file my complaints with Board members and the NCUA and see if that nets us anything. What do you think? I'm in the same boat as you, and probably others.

2

sjh13 | Feb 28, 2023 | 27 posts since 2010

I think a LOT of people are in the same boat. We all jumped at 5% for 48 months. I never got anything to sign, like a sig card, and they also said that was because it was opened online...more nonsense. I will probably file a complaint with the NCUA as well.

2

sjh13 | Mar 1, 2023 | 27 posts since 2010

To add the hot mess that is University, regarding POD's I was also told that Charities can NOT be added to CD's at all. Regardless of having the EIN of my charities, I was then told that it was out of the question, against policy to add a Charity POD to a CD. They would add it to the Share account, but were adamant that it would NOT increase my NCUA coverage. When I argued this with the rep, he read to me some sort of disclosure about University's policy about Charity POD's that would seem to imply they would not be used for NCUA coverage. I kept telling him it wasn't the CU's decision whether NCUA would cover it, then I gave up. I asked to see the disclosure that he was reading from, but I'm about 100% sure I'll never get that.

1

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.