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All federally insured credit unions must display the official NCUA insurance sign at each teller station, where insured account deposits are normally received in their principal place of business and in all branches. They are also required to display the official sign on their internet page if the credit union has one. Some scammers will display on websites that a credit union is insured through the NCUA when they in fact are not. To verify if a credit union is insured through the NCUA, visit the credit union locator.

When opening a checking account, the credit union will ask whether you wish to join their overdraft program for one-time debit card and ATM transactions. If you agree, the credit union will cover the transaction and impose an overdraft fee, which is detailed in their fee schedule and the opt-in authorization form. To illustrate how this might affect you, consider this scenario: you decide to opt into the overdraft program, and you’re at your favorite coffee shop. Let's say you have an available balance of $1.40 in your checking account while the coffee costs $3.00. When the clerk processes your debit card, the $3.00 purchase exceeds your available balance. Because you opted in, you authorized the credit union to cover the coffee purchase and charge you an overdraft fee as a result. Some fees can reach as high as $40 per overdraft, making that cup of coffee cost you $43 in total.

Common Credit Counseling Scams include the following. 

• Upfront Fees – Scammers often demand large upfront fees before providing any services. Legitimate credit counseling agencies typically do not charge significant fees upfront.
• Overpromising – Fraudulent companies may promise to erase accurate negative information from your credit report, which is not legally possible.
• Lack of Transparency – Scammers may not explain your rights or the details of their services clearly. They may push their own programs without considering your specific needs.
• Complex Contracts – Contracts that are difficult to understand or filled with legal jargon can be a red flag. Legitimate services should provide clear and straightforward agreements.

Paying only the minimum payment on a credit card often doesn’t significantly decrease the amount due because of the way interest and fees are applied. Here are the main reasons.

• Interest Accumulation – When you make only the minimum payment, a large portion of that payments goes toward interest rather than the principal balance. This means the actual debt amount decreases very slowly.
• Fees – If your account has any fees, such as late payment fees or annual fees, these can add to your balance. Paying only the minimum may not cover these fees causing your balance to remain high or even increase.
• High Interest Rates – Credit cards often have high interest rates. Even if you make the minimum payment, the interest charged on the remaining balance can be substantial, offsetting the reduction in the principal.
• Continued Spending – If you continue to use the credit card while making only minimum payments, new charges will add to your balance, making it difficult to see a decrease.

Example: If you have a balance of $1,000 with an interest rate of 13% and make a minimum payment of 2% ($20), a significant portion of that $20 will go toward interest, leaving a small amount to reduce the principal.

1. Add Up Monthly Debt Payments: Include all your monthly debt obligations such as your: mortgage or rent payments; student, auto, and personal loans; other loans; credit card payments, child support payments that you make; alimony payments that you make; and any other monthly debt payments. Living expenses such as utility bills, food, and entertainment are not typically included.
2. Add Up Gross Monthly Income: Your gross monthly income includes the total amount of money you receive in a month from all sources before taxes and other deductions. Income includes earnings from your employment as well as other sources.
3. Divide and Multiply: Divide your total monthly debt payment by your gross monthly income then multiply by 100 to get a percentage.

Example: If your total monthly debt payments are $1,500 and your gross monthly income is $5,000, your DTI is 30%. This means that 30% of your gross monthly income goes towards paying debt. Knowing your DTI is important for keeping track of your budget. Lenders may also look at DTIs to assess a borrower’s credit worthiness.

It is important to note that the credit union does not calculate your credit score, but the national consumer reporting agencies use proprietary software to determine how the score is calculated using a scoring model. FICO is just one of many scoring models. FICO has identified the following categories and weights of each factors used to generate FICO scores: 

• Payment History (35%); 
• Amounts Owed (30%); 
• Length of Credit History (15%); 
• New Credit (10%); and 
• Types of Credit in Use (10%).

The credit union can report your personal information to the consumer reporting agencies in accordance with Regulation P, which allows the credit union to report information about you to a consumer reporting agency. Also, under Regulation P, you have no right to opt out of having the credit union report your personal information to the credit reporting agencies. Regulation P does not apply when a credit union discloses nonpublic personal information to a consumer reporting agency in accordance with the Fair Credit Reporting Act.

A consumer report can be requested by a credit union when you seek to obtain a loan, which includes credit for making a purchase. In this scenario, the credit union has a legitimate purpose for seeking the report and does not require specific authorization, regardless of how the credit application is submitted—whether in person, by phone, by mail, or online. Importantly, the fact that credit is ultimately not granted does not make the request for a credit report improper. The credit union does not violate your privacy by obtaining your consumer report when you seek a loan nor are they required to obtain your permission when they report information about your payment performance to a consumer reporting agency.

You can initiate a dispute by searching for the contact details of one of the three major consumer reporting agencies: TransUnion, Equifax, or Experian, or by directly contacting your credit union. To file a direct dispute with your credit union, you need to send a formal notice to the address provided by the credit union on your consumer report, or an address specifically indicated for dispute submissions. If no such address is available, you may send your notice to any business address associated with the credit union. Your dispute notice should include specific information, such as enough details to identify the account or relationship in question, the exact information you are disputing, and your reasons for the dispute. Additionally, consumers must include any supporting documentation or relevant information requested by the furnisher to substantiate their dispute. This may include items like a copy of the relevant section of the consumer report that contains the disputed information, a police report, a fraud or identity theft affidavit, a court order, or account statements.

Check your membership account agreement to make sure you understand when your credit union will impose these fees and how it defines an “actual” versus an “available” credit balance. In general, an actual balance includes any pending transactions that have not yet posted, while an available balance reflects the amount of money in your account that you can use without incurring an overdraft or nonsufficient funds fee. It's important to note that the actual balance does not account for paper checks you've written, automatic withdrawals from your account, or recurring debit card transactions, such as payments you've authorized for your car or home insurance. As a result, the actual balance may appear higher than the amount that is available to you without overdrawing your account.

To prevent overdraft and non-sufficient funds (NSF) fees, it's essential to monitor your account balance diligently. Consider enrolling in your credit union's low balance alerts; these notifications can inform you when your account is at risk of overdraft. Additionally, regularly reconcile your checkbook by keeping a record of your balance, transactions, and automatic payments. You might also think about using cash for your purchases, maintaining a buffer in your checking account, or connecting your checking account to another account or a line of credit offered by the credit union. Consult with your credit union representative for further guidance on how to set up these links.

Common debt relief scams include the following.

• Guaranteed Debt Elimination – Scammers may guarantee complete debt elimination, which is unrealistic. No company can guarantee that creditors will agree to settle for less than what you owe.
• Upfront Fees – Similar to credit counseling scams, debt relief scams often require significant upfront fees before any services are rendered.
• High-Pressure Tactics – Scammer may use high pressure sales tactics to rush you into signing up for their services without giving you time to consider your options.
• False Claims – Some scammers falsely claim they can negotiate with creditors to reduce your debt significantly, but they either do nothing or provide minimal assistance with charging high fees.

Absolutely! You should feel free to ask the loan officer for clarification of the Truth in Lending Disclosures. These disclosures provide important details such as the interest rate, the total number of payments, payment due dates, the overall cost of the loan including interest, and any late fees that may apply if payments are missed. Additionally, if the loan officer inquiries about your interest in credit life and disability insurance, be sure to ask how it will impact your monthly payments and the total cost over the life of the loan.

If you forget to pay your auto insurance and your coverage lapses, or if your provider cancels your coverage, the credit union will impose forced-placed insurance. This insurance only protects the credit union's interest by covering the vehicle's value in case of damage, but it does not provide you with the standard coverage typical of regular insurance policies. If you switch insurance providers, ensure that you give the credit union a copy of your new policy. Failing to do so may lead them to assume the vehicle is uninsured and subsequently add forced-placed insurance. Also remember to ask if the credit union has limits on the dollar amount of insurance loss deductibles and be sure to review the terms of your loan agreement with your credit union.

The credit union is authorized to charge daily interest on the outstanding balance between your payments. When you make a loan payment, the credit union calculates the interest that has accrued since your last payment and deducts this amount from your current payment. The remaining funds are then applied to the principal of the loan. Additionally, NCUA regulations allow you to pay off your loan early without incurring any penalties. This means you can make payments more frequently than specified in your loan agreement, which ultimately reduces the total interest you will pay over the life of the loan. Review your loan agreement with your credit union if you have any questions about the terms surrounding your loan.

If you do not receive a letter or email from the credit union about the attempted resolution of your complaint within 60 calendar days of the date of the letter from the CAC, please contact us immediately. The CAC will then determine the next steps, which may include its investigation of the matter. If the CAC does not receive any written response from the credit union within the 60-day time frame, it will begin a formal investigation of the matter. The CAC will also begin a formal investigation if the credit union notifies the CAC in writing that it has been unable to resolve your complaint.

If you do not agree with the credit union after receiving its response to your complaint, then you can dispute the resolution of the complaint by contacting the Consumer Assistance Center (CAC) in writing within 30 calendar days of the date of the credit union’s letter to you. In your written communication to the CAC, it is recommended that you describe why you believe the matter has not been resolved. The CAC will begin a formal investigation of the matter if it receives written notice from you that your complaint has not been resolved.

When you receive a written communication from the credit union about your complaint and you agree the matter has been resolved, the CAC will close your case after receiving the credit union’s response. It is not necessary for you to contact the CAC if you agree with the credit union.

A credit union has 60 calendar days after receiving your complaint from the Consumer Assistance Center (CAC) to review and, if appropriate, attempt resolution of the matter. During this time, the CAC recommends that a credit union: 

• Review your complaint; 
• Communicate directly with you as needed and appropriate; and 
• Report back in writing to you and the CAC about whether it has been able to resolve this matter.

If your complaint can be handled by the Consumer Assistance Center (CAC), the CAC will forward your complaint and any documents you provide in support of your complaint to the credit union within 10 business days of receiving your complaint.