News

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A Message to Our Members About COVID-19

The health and well-being of our Members, STAR Staff, and community is our top priority. We understand the concern and uncertainty you may be experiencing surrounding the coronavirus (COVID-19) and are committed to being responsive to the needs of our Members as the situation evolves.

We strongly encourage you to use the website www.starcu.org and other resources for self-service banking and 24/7 account access. You can access your accounts online or by using mobile banking at your convenience. From there, you can make payments, view transactions, check balances, find an ATM and more. It’s easier and faster to manage your account digitally, especially given call wait times may be longer than usual.

We also understand that there may be instances where Members find themselves facing financial difficulties. STAR Financial Credit Union is here to help, and we encourage Members who may be impacted to reach out to discuss how we might be of assistance.

Should you find yourself in need of assistance, please call 361-242-7827.

As always, the health, safety and well-being of our Members, our STAR Staff and our community is of great concern. We continue to monitor this quickly evolving situation and are here to assist our STAR Members as needed. For additional information about COVID-19, visit the Centers for Disease Control and Prevention at cdc.gov.

E-Statement Notice

STAR Financial Credit Union will be upgrading to a new e-statement processor in June.  Beginning February 7th e-statements will No Longer be available from the MyKeptData Vault website. Statements will be delivered by postal mail until June. If you are currently signed up for estatements, any paper statement fees will be refunded to your account.  If you need copies of your past statement, you will need to download or print them from MyKeptData prior to February 7th.

If you have any comments, questions, or concerns, please contact us 361-242-7827

Debit Card Notice

STAR Financial Credit Union has implemented additional anti-fraud procedures for our Visa Debit Cards in order to protect our members from debit card fraud. The new procedures will affect members using their cards as a “credit” transaction. You will need to choose “debit” and enter your PIN (personal identification number) for purchases over $149.99 at the following types of merchants; home supply warehouse stores, wholesale clubs, discount stores, department stores, grocery stores, supermarkets, electronic sales and drug store pharmacies. If you encounter any problems using your Visa Debit Card, please contact Member Services at 361-242-7827 during normal business hours.

From STAR Financial Credit Union

Amid the turmoil of the financial world today, the foremost question on everyone’s mind is: Are my deposits safe? At STAR Financial Credit Union your deposits are safe. STAR Financial Credit Union is a secure and strong financial institution with over 12% reserves (8% is considered well capitalized).Deposits in STAR Financial Credit Union are federally insured up to $250,000 by the NCUA, through the National Credit Union Share Insurance Fund (NCUSIF). NCUSIF is backed by the full-faith and credit of the United States Government.

In addition, the Board of Directors of STAR Financial Credit Union have chosen to provide an additional $250,000 of savings coverage to qualifying accounts through ESI, a licensed property and casualty insurance company. The short answer to your question is: Your funds are safe at STAR Financial Credit Union.

PSA: Spot Delivery/Yo-Yo- Financing/Conditional Sale at the dealership

When a Member buys a new (or used) car, the contract is signed and they drive home.  Then a few days (or a week or two) later the dealership calls and says that the Member was not approved for the loan and to bring the car back. This is called “spot delivery,” or sometimes a “yo-yo scam,” or conditional sale.In some states this is illegal and protected under consumer protection laws or truth in lending laws. The first thing the Member will want to do is get everything out of the car. There is a chance that the car dealer will try to repossess the car. The Member needs to go over all of the paperwork that they have for the car and check for any paperwork where there is a clause in loan financing approval. If the Member wants to keep the car, then they need to make the agreed upon payments.  Send them to the contractually required address via certified mail and make sure the notes say it is for loan payment for vehicle vin # (whatever the vin is). Failure to do this is default on the loan agreement and they can legally take the car back regardless if the spot delivery was legal or not.
Contact a consumer protection lawyer. Get a free consult. Based on what the lawyer says, contact the dealer and say “my lawyer says this….” If they don’t back down, the lawyer may take the case on contingency (which means he will make his money off the settlement) and will sue the dealership for their violations. But the Member’s first step is to see if Texas state has laws protecting the consumer with “spot delivery” of vehicles.
Some states it is legal with provisions such as:
  • if they cannot secure the loan, the vehicle must be returned and all fees and payments returned to the consumer
  • The vehicle must be returned and the consumer pays for non-recoverable fees such as state paid title and tag fees
  • The vehicle needs to be returned and daily use fees need to be paid.
This should all be spelled out in the Member’s documents they signed. If these documents are not in the Member’s paperwork, it may not be legal in Texas.
If it is not legal in your Texas, then the dealership will have to let you keep the car and they will have to assume the financing signed for in the loan documents. As they don’t have the infrastructure for this, they typically will discount the car down to a price where a bank will assume the loan at your payment price, and the dealership will have to eat the difference. So if the Member has a $30,000 car and they agreed to a $400 payment, for example. Then they will have to work a deal with the bank that they will pay a sum of money (say  $10,000) to the bank to secure the loan on the Member’s behalf, or co-sponsor the loan to get the Member approved (if the Member defaults, the bank has to eat the debt, or if the dealership co-sponsors the loan, the deal eats the debt).
Be aware that most dealerships do not sign loan applications, they sign sales and loan contracts.
Have the Member call the loan department of the finance institution. Ask THEM if and why the loan was not approved. It is not uncommon to find out that there is no record of any loan declined in the Member’s name. This is Spot Delivery / Yo-Yo scam.  The objective is to get the Member to come back and agree to a higher interest rate and larger payment (or much longer term), or agree to a lesser car at the same inflated price. When this happens, the Member should call the dealership and tell them;  “I will honor the contracts I signed. I will not negotiate a higher interest rate.” Then should not return to the lot.  In most cases, in a few weeks a payment book will arrive in the mail from the bank that supposedly turned them down. They hope the Member will return to the dealership and will allow them to tear up a valid loan contract and sign a new contract for a higher interest rate.
What they hope is that the Member does not know that under the law, the sale contract is not legally binding unless financing is approved. If the loan is not approved, the sale contract is automatically voided.
The Member needs to remember: DO NOT SIGN ANYTHING. Call them and tell them to honor the contracts they signed or “no sale.”
ADDITIONAL INFORMATION
Yo-yo financing occurs when a dealer allows the customer to drive a car off the lot at an agreed finance rate, knowing that the rate won’t be approved. Then the dealer calls to say that you don’t qualify for that (lower) rate and asks that you return to the dealer to sign financing paperwork at a higher interest rate. Refuse and you can lose the car and lose your down payment. This is illegal in most states but it happens more than one would expect (fairly common).
On the other hand, if the dealer tells you that they will work out the financing and the Member can just take the car home with them, that is considered a conditional sale. Dealers use this quite often to stop customers from dealer hopping (shopping price). In this case, the customer is aware that the rate can change. The hope is that the customer gets emotionally invested in the vehicle, regardless of change in rates.
Reality is, the level of sophistication at the dealer level, is such that the dealer knows exactly what will or will not be approved, well before document submission. The FTC receives nearly as many complaints about conditional sales as Yo-Yo financing.
The bottom line is to never leave the dealership until everything is final.