Complaints

This profile includes complaints for State Farm Federal Credit Union's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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  State Farm Federal Credit Union

  1 State Farm Plz # C-3 Bloomington, IL 61710-0001

• 

  State Farm Federal Credit Union

  1 State Farm Plaza Bloomington, IL 61791

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:09/27/2024

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I cosigned on 10/8/2021 a car loan from State Farm Federal Credit Union (SFFCU) for a Hyundai Palisade 2022. The loan went into collections and a letter dated 5/1/2024 requesting payment of funds in arrears be satisfied by me. I asked my son the Borrower to sell the car to my wife for the remaining amount of the loan and send the proceeds to SFFCU to pay off Loan No.******. This was completed. SFFCU shows a $0.00 balance on the account. as of 7/18/2024. SFFCU refuses to send the original title to complete the sale. They claim the car was co-collateralized for additional loans taken out by my son. I was unaware of the additional loans and that the vehicle was being used to secure the loan. My wife has taken out a sizeable loan to pay off the loan and we are at risk of the lender calling in the loan because we can not deliver the title free and clear. The money was paid to my son who intern paid SFFCU. SFFCU collections department was aware of the transaction and assured us the title would be forwarded.

  Business Response

  Date: 10/07/2024

  State Farm Federal Credit Union (SFFCU) is responding to ****** ******’s complaint submitted to the BBB on September 27, 2024 concerning the title of the Hyundai Palisade 2022 used to secure loan **********.
  
  This matter was reviewed with State Farm Federal Credit Union management, and we have concluded that the cross collateral provisions under which the title is being held are outlined in the document Mr. ****** attached to the complaint titled “****** ****** **** *** ******** ********* ***.”  Specifically, it states:
  
  "WHAT THE SECURITY INTEREST COVERS/CROSS COLLATERAL PROVISIONS – The security interest secures the Loan and any extensions, renewals or refinancings of the Loan.  Unless prohibited by applicable law, the security interest also secures any other loans, including any credit card loan, You have now or receive in the future from Us and any other amounts You owe Us for any reason now or in the future, except any loan secured by Your principal dwelling.  If the Property is household goods as defined by the Federal Trade Commission Credit Practices Rule or Your principal dwelling, the Property will secure only this Loan and not other loans or amounts You owe Us."
  
  Under this loan provision, SFFCU procedures require that we review the status of outstanding loans of the member prior to release of our security interest.  Based on that review and our rights under the executed Loan and Security Agreements and Disclosure Statement, the title cannot be released at this time.
  
  Thank you,
  ******* ********
  State Farm Federal Credit Union
  Supervisory Committee Chair

  Customer Answer

  Date: 10/12/2024

   I am rejecting this response because: the payment was made with false representation from State Farm Federal Credit Union's collections department.  Please return payment.
  
  
  

  Business Response

  Date: 10/20/2024

  SFFCU disagrees that the payment was made under false representation.  Please see PDF letter with full detail. 

  State Farm Federal Credit Union (SFFCU) is responding to ****** ******’s follow up submitted to the BBB
  concerning the title of the Hyundai Palisade 2022 used to secure loan **********. The consumer stated “I
  am rejecting this response because: the payment was made with false representation from the State Farm
  Federal Credit Union’s collections department. Please return payment.”
  SFFCU disagrees that the payment was made under false representation. While title release for payment was
  requested by the cosigner, it was denied via written response. Please refer to the communications between
  June 26th and June 28th in the document provided with the complaint titled “Confirmation of Palisade Loan Paid
  7-26-2024.pdf.” Specifically:
  - On June 26th 2024 11:31 AM. ****** to SFFCU Collections “Let me know if you are willing to release
  the lien on the vehicle when the loan is paid.”
  - On June 26 2024 3:35 PM ****** to SFFCU Collections “The purchase of the vehicle and subsequent
  payment to SFFCU will occur if SFFCU agrees to apply the proceeds from the car sale to cure Loan
  Number ******* ***. If this is acceptable to you please have an authorized representative from
  SFFCU acknowledge acceptance of these terms in writing guaranteeing the release of the lien of the
  title and delivery of the title to the Seller for assignment to the new Owner. An electronic copy of
  SFFCU’s agreement of the above terms signed by an authorized agent from SFFCU and notarized will
  be acceptable. Upon the acceptance of terms we will proceed with the sale”
  - On June 27, 2024 1:17 PM – ****** to SFFCU Collections following up for response to June 26th
  request.
  - On June 28, 2024 – SFFCU Collections department to ******: “We will not release the lien on the
  Hyundai Palisade until all accounts are current.”
  As noted in our initial response to the complaint, the cross collateral provisions under which the title is being
  held are outlined under the Security Interest and Cross Collateral Provisions in the document Mr. ******
  attached to the complaint titled “Hundai Duncan Loan and Security Agreement L50.”
  Further, the document titled “State Farm Federal Credit Union Cosigner Doc 10-8-2021 states that the
  guaranty “remains in effect even though you are not given notice of the following.” This includes but was not
  limited to “Of any new debts with the Credit Union incurred by the Borrower”
  The payment received satisfied the obligations agreed to under the Guaranty Agreement executed by ******
  to be a cosigner on Loan ***********, but it does not guaranty the release of the title. ****** is not listed on
  the title of the vehicle and the Guaranty Agreement does not provide ****** the right to the title. Further,
  written communications between SFFCU and ****** clearly outlined the requirements under which the title
  can be released. 

  Customer Answer

  Date: 10/22/2024

   I am rejecting this response because: Since the seller is unable to provide the title to the buyer we hereby demand that the payment issued to the buyer by ******* ****** ***** (the lender for the purchase of the Hyundai Palisade 2022) be returned to ******* ****** ***** and the cosigner will continue to make payments to State Farm Credit union for the loan specifically signed by the cosigner.  Since the Palisade will be held for collateral there should be no objection to the cosigner fulfilling the monthly payments of the Palisade loan.