Credit unions — how complaints work

In short

Credit union members have the same federal card and transfer rights as bank customers: a prompt error notice for debit card and electronic transfers, and a written billing-error notice within 60 days for credit cards. If the credit union does not fix a problem, the NCUA's Consumer Assistance Center takes complaints about federal credit unions, but it first gives the credit union 60 calendar days to resolve it; the CFPB also accepts complaints. Check whether the credit union is federally insured, since some state-chartered credit unions use private insurance. Credit unions, like banks, do not ask you to move money to protect it or to share sign-in details or one-time codes.

How complaints work in this industry

• The NCUA Consumer Assistance Center handles federal credit unions and, in some cases, federally insured state-chartered credit unions with total assets up to $10 billion, for complaints under federal consumer financial protection laws; it forwards other complaints to the right federal or state regulator. NCUA Consumer Assistance Center
• Allow 10 business days for acknowledgment. The NCUA forwards the complaint to the credit union within 10 business days, and the credit union has 60 calendar days to try to resolve it before the NCUA starts a formal investigation. NCUA Consumer Assistance Center
• If you disagree with the credit union's response, tell the NCUA in writing within 30 calendar days of the credit union's letter; an appeal of an NCUA determination goes in writing to the Director of the Division of Consumer Affairs within 30 days. NCUA complaint process
• Include the credit union's full name and address, the staff you dealt with and dates, copies of correspondence and the resolution you want, and remove Social Security, card and account numbers from documents. NCUA complaint process
• The CFPB also takes complaints about consumer financial products; companies generally respond in 15 days, and in some cases give a final response within 60 days. CFPB: complaint process

Your leverage

• Each member has at least $250,000 in total share insurance coverage at each federally insured credit union, backed by the full faith and credit of the United States government. Some state-chartered credit unions use private insurers, which are not backed by the U.S. government. NCUA: share insurance
• Debit card, ATM, ACH and other electronic transfer errors (Regulation E): report within 60 days after the statement is sent; the institution must investigate within 10 business days, or within 45 days if it provisionally credits your account within 10 business days. CFPB: Regulation E 1005.11
• If you report a lost or stolen card or code within two business days of learning of it, your liability for unauthorized transfers is limited to the lesser of $50 or the amount taken before notice. CFPB: Regulation E 1005.6
• Credit cards: a written billing-error notice received within 60 days after the first statement with the error must be resolved within two billing cycles (no later than 90 days), and the disputed amount may not be collected or reported as delinquent meanwhile. CFPB: Regulation Z 1026.13
• A credit union may not charge an overdraft fee on ATM or one-time debit card transactions unless you opted in to its overdraft service. CFPB: Regulation E 1005.17

Traps

• The NCUA does not investigate until the credit union has had 60 calendar days to resolve the complaint, so complain to the credit union in writing first and keep the dates. NCUA Consumer Assistance Center
• NCUA share insurance does not cover stocks, bonds, mutual funds, life insurance policies, annuities or safe deposit boxes, even when they are sold at a credit union. NCUA: share insurance
• Investigation times can be longer than the 10-business-day baseline: Regulation E allows up to 90 days for point-of-sale debit card transactions and new accounts. CFPB: Regulation E 1005.11
• Credit union policies can state longer timelines than the federal baseline; Navy Federal says debit card dispute investigations can take up to 120 days and a temporary credit is not guaranteed in some cases. Navy Federal debit card FAQs
• Money you are tricked into moving out of a deposit account has fewer protections than a credit card charge and may not be recoverable. FTC consumer alert

Scams to watch for

• Callers pretend to be employees of your bank or credit union and say your account is frozen, a payment has a problem or they noticed suspicious activity, to get your sign-in or account information; impostors spoof real phone numbers and email addresses. Navy Federal: imposter scams
• Navy Federal says it will never ask for your online banking sign-in information and texts only from 5- or 6-digit short codes, never from a 10-digit number. Navy Federal: imposter scams
• Anyone who calls about fraud on your account and offers to protect your money by moving it is a scammer, and no real fraud department asks for your verification code. FTC consumer alert
• Forward phishing emails that claim to be Navy Federal to phishalert@navyfederal.org, and report suspicious calls, texts or social media messages to reportabuse@navyfederal.org. Navy Federal: report fraud