I've just had a slightly stressful ordeal with MACU regarding a Platinum visa application. They're actually very nice, but man, staying up two nights till 3AM and not getting the card for a really baffling reason... I still can't figure it out and need more experienced territory dwellers' help!
So this is what happened. I submitted my application online, received an email to call in, so I did. The lending services rep said it looked all good, I was going to get a 13.24% APR, and he ran through all the necessary disclosure related stuff while we were waiting for an underwriter to become free. The underwriter apparently asked me to send in 2 months' income verification and my W-2.
So I drove over to the office (it was 2AM), got my payroll summaries, printed my DCU statements where I deposit my paychecks, highlighted the deposit line items to show the date, and scanned and e-mailed everything together with my 2018 W-2CM (Northern Mariana Islands version of W-2).
Next I received an email from the underwriter asking whether I have US-taxed income, because if I don't, they can't approve me.
I replied in a lot of detail that income here IS U.S. income, that the listed SST and Medicare taxes on the W-2CM went to the SSA, that even though the CNMI, Guam, American Samoa, Puerto Rico, and US Virgin Islands governments pocket what would be federal income tax into their respective government coffers, that that is all done while being part of the U.S., sort of like if Utah had an agreement with the feds to pocket all federal income tax, they'd still be doing it as part of the U.S. because Utah still wouldn't be a separate country. That you could move $1 billion from MACU to a local bank without getting in trouble with foreign transaction regulations because money here is still money in the US, my deposits here are FDIC insured, etc.
Next day I got a call back, she said she did spend quite a bit of time researching, consulting with a corporate underwriter, trying to decide what to do because they had another similar case that they were trying to decide on. I mean, she was very nice, all MACU employees I've spoken to have been, but the gist was that there's no way for them to verify my income if it's not paid to the federal government. If I was a federal employee or a soldier, that income would be reported to the feds and they could verify my income, otherwise they can't.
I told her I really doubt banks have an electronic link to the IRS to view all their customers' tax histories and whatnot, and that any falsified documents I sent them would put me on the hook for providing false information to a financial instution. That didn't work, which is why I'm here, lol.
I also said people here have Discover cards, Amex cards, Chase cards, etc. and she said that's because they use auto-approval unlike CUs which actually do verification. Yet I've seen people with PenFed auto loans and cards, too, and none of the aforementioned banks/CUs have a physical presence here.
I mean, I'm grateful that she spent time looking things up and calling me at 7AM instead of 3AM, as I'd expect most people would just put up some bogus reason not to talk to me any more, but I still don't get it. Unless it's internal policy for them not to issue cards to territorial residents, which I don't think is the case. CapOne and some other places make it a point not to do business with anyone in a territory, but I have MACU savings + checking, and they also had all the territories listed on their online application form.
Does anyone understand what happened here? I'm truly baffled.
If you're a US possession/territory resident, I'd like to hear your experiences, too!
Starting Scores: No Scores (03/2018)
MACU is Mountain America Credit Union in Utah, and I'm in the Northern Mariana Islands, which I think has the only other Commonwealth designation other than Puerto Rico among the territories.
I live, work, and pay taxes here, too, it's just that AFAIK, Puerto Rico collects federal income taxes and pockets it for itself as the NMI does? Do you file a straight up 1040 that goes to the IRS, or a 1040 deviant that goes to PR's tax department? For example, we get W-2CMs instead of W-2s and 1040-CMs instead of 1040s. FICA taxes withheld from the paycheck go to the actual Social Security Administration but individual and business income taxes go to our local government instead of the IRS as outlined in the agreement the NMI made with the feds when it gave up sovereignty to become a U.S. possession.
At any rate, it's all U.S. taxes as the work is done on U.S. soil, paid in U.S. dollars, drawn from U.S. banks, deposited to U.S. banks, reported by employers that have to get its EINs from the IRS. Yet MACU kept saying they "can't verify my income" because I supposedly don't pay U.S. taxes, which is so wrong IMO.
And I've seen your raves about Langley and had them on my future apps spreadsheet, lol. Guess they're going up the priority list? PenFed's denied me for a CC, can't join Navy unless someone wants to adopt me. 
Do you have cards from other CUs? The trodden path would be so much easier than than this merry go round although it is about time to cut my losses and garden...
I have a normal job so i get a W2 , i have a small part time that i fill out a 1040 and send out to the Fed Gov.
Yeah ,Penfed drives me nuts. I actually have 2 local branches and would love to use them more but i guess they dont like my low income lol. Sometimes picking a CU so far away can be problematic for us on the Islands as either they dont like us not being local or just have ignorance on our status. Some places will ship here normal, other treat us as international . We have all the same services as Mainland, USPS,UPS,FED EX , etc.
Honestly i would just try another lender and see what will work better for you. Best of luck. Just let Pacman eat MACU
Yeah ,Penfed drives me nuts. I actually have 2 local branches and would love to use them more but i guess they dont like my low income lol. Sometimes picking a CU so far away can be problematic for us on the Islands as either they dont like us not being local or just have ignorance on our status. Some places will ship here normal, other treat us as international . We have all the same services as Mainland, USPS,UPS,FED EX , etc.
Honestly i would just try another lender and see what will work better for you. Best of luck
. Just let Pacman eat MACU
Thanks, you guys are probably right, guess I'll just chalk it up to ignorance and move on.