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Problems with USAlliance

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longtimelurker
Epic Contributor

Problems with USAlliance

Too long, but I was upset!

 

Generally I have had a good experience with USAlliance, the 3% credit card has been good (even if ends at the end of 2022) and their savings rates have been high.   But today I ran into a problem which makes me like them a lot less!

 

Because of the high rates, when I had an IRA certificate mature at Evansville Teachers (ETFCU) I got them to transfer the funds to USAlliance.  This was a trustee to trustee transfer, basically institution 1 sends a cashiers check to institution 2, so I don't get involved and avoid any IRS concerns.

 

So fine, after a few days the funds evidently arrived and a new IRA CD appeared in my USAlliance account.  Good!  

But (and of course from the post there must be a but..) today I got a message that

 

A check that was recently deposited into account ending in ABCD has been returned DUPLICATE.  Your account has been debited $XXXXX.95 plus a $35.00 return check fee debited from your savings account EFGH

 

And the balance of the CD was now $0, I have apparently lost tens of thousands of dollars.   I would have understood if they had somehow credited the account twice and then remove the second credit, but it looks like they credited once and then debited the whole thing!

 

Plus, this is a cashiers check that was sent directly to them!   Who is trying to deposit it twice!

 

So, I called and after a while was told that they had presented it on two separate days hence the duplicate notice.  And they would enter a research ticket to look into it and I should here in about 48 business hours.  Sorry, different department which doesn't talk to customers.

I was a little annoyed at the lack of urgency, it looked like it was just their error and they didn't need any research before removing the funds.  I expressed  strong displeasure in my British way, which might have been unnoticed by an American CSR.   

I also wrote to the retirement person who had helped set this up, but no quick response.

 

So then I checked with ETFCU to see if they could track the funds.   Within 30 minutes, a person there had called me back, providing all the information as to when USAlliance actually collected the funds and the time of their second duplicate attempt.   Much more professional and by that stage it was nothing to do with them!   

 

Then I hear back from the USAlliance retirement person, apologizing for the error and everything is now back.   And it is, so great.

 

But (again), I wrote again to the CSRs, asking for it to be send higher, as the experience raised two questions:

 

1) What would happen if I hadn't complained?   In this case, a cert went to zero so it was easy for me to spot, but in some savings or checking account where the amount was say 5-10%   Would an audit have caught it.

2) Their mistake cost me a lot of time (I got on this straight away and dropped other things as I don't want 5 figure sums to disappear!)  So I asked for some small compensation.   Since they originally wanted to charge me $35, I would be willing to accept that as a token...

Message 1 of 7
6 REPLIES 6
FinStar
Moderator Emeritus

Re: Problems with USAlliance

Yikes, that wasn't supposed to happen.

 

Sorry to hear about the unpleasant experience. Obviously, someone messed up and it sounds like the transaction was double-posted which I'm sure created some internal funding exception of sorts which wasn't corrected immediately. I would say, someone in a different department would've eventually caught it, but not right away. Thankfully, you were vigilant, but I can think of situations where a variety of customers would just leave things on auto-pilot only to learn of a big mess much later.

 

Personally, I haven't had any transactional issues with USAlliance, but I did have an ACH issue with ETFCU, which took them a few weeks to resolve.

 

*Note to self if using USAlliance for similar instruments*

Message 2 of 7
longtimelurker
Epic Contributor

Re: Problems with USAlliance


@FinStar wrote:

 

Personally, I haven't had any transactional issues with USAlliance, but I did have an ACH issue with ETFCU, which took them a few weeks to resolve.

 

 


Good example of two cardinals rules:

1) YMMV

2) An institution can be good/great until it isn't!

 

As I said, I have been pretty positive about USAlliance, but one "small" thing can change that.   And at present I think ETFCU is great,  but obviously if I had @FinStar s ACH experience, they would go way down in the "good" list!

Message 3 of 7
coldfusion
Community Leader
Mega Contributor

Re: Problems with USAlliance

Garden Club peeps might remember my running commentary there over a couple of month period in late 2019 when a US Alliance CSR fat-fingered a field in another member's in-branch application for credit and I ended up with an inquiry on Experian - error made, no permissible purpose was attached as I was not an applicant.  They acknowledged their error but my requests that they withdraw the inquiry went unfulfilled until I filed a complaint directly with the NCUA after which executive leadership made sure the issue was properly addressed.

 

I still have active deposit accounts (CC is closed) but my overall opinion of them remains tarnished.

(2/2024)
FICO 8 (EX) 846 (TU) 850 (EQ) 850
FICO 9 (EX) 850 (TU) 850 (EQ) 850

$1M+ club

Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 4 of 7
longtimelurker
Epic Contributor

Re: Problems with USAlliance

I submitted a complaint to NCUA after not hearing back.   But just now I got a survey to rate the experience with the product purchase.   That's nice!

Message 5 of 7
FinStar
Moderator Emeritus

Re: Problems with USAlliance


@longtimelurker wrote:

I submitted a complaint to NCUA after not hearing back.   But just now I got a survey to rate the experience with the product purchase.   That's nice!


And, knowing how you can willingly and happily provide feedback, I'm sure you gave them a 10? (If the ratings were from 1-10, with 10 being stellar!) 😂

Message 6 of 7
longtimelurker
Epic Contributor

Re: Problems with USAlliance


@FinStar wrote:

@longtimelurker wrote:

I submitted a complaint to NCUA after not hearing back.   But just now I got a survey to rate the experience with the product purchase.   That's nice!


And, knowing how you can willingly and happily provide feedback, I'm sure you gave them a 10? (If the ratings were from 1-10, with 10 being stellar!) 😂


Well, it may be a niche product!  CD/certificates are considered safe and stable, which makes them boring.   USAlliance shakes this up with:

Your product will grow at a fixed, predictable interest rate until maturity, OR, we may zero it out at any point!   Motto: "Do you feel lucky, punk?"

 

So a 4 out of 5 from me!

Message 7 of 7
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