Complaints

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

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Democracy Federal Credit Union has 4 locations, listed below.

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  Democracy Federal Credit Union

  400 N Columbus St Ste 300 Suite 300 Alexandria, VA 22314-2264

• 

  Democracy Federal Credit Union

  5720 Silver Hill Rd District Heights, MD 20747-1101

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  Democracy Federal Credit Union

  200 Independence Avenue S.W. Washington, DC 20024-0990

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  Democracy Federal Credit Union

  PO Box 25516 Alexandria, VA 22313-5516

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:05/22/2025

  Type:Billing Issues
  Status:

  UnansweredMore 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.

  To Whom It May Concern,I am writing to complain about excessive overdraft fees and poor customer service from your *********************************************. Despite my efforts since ***** to resolve these issues, I have faced numerous obstacles that have worsened my financial situation.Excessive Overdraft Fees: My account has been charged multiple unjustified overdraft fees, exceeding the credit union's limits. Despite having a positive account status, these fees pushed my balance over $500 negative, causing financial hardship. I have requested fee reversals without success 1 .Positive Account Status: Overdraft fees were applied when my account was positive, suggesting errors in processing. I have provided transaction history evidence showing my account should not have been charged 1 ***************** Challenges: My interactions with customer service since ***** have been unsatisfactory, including threats of account closure and ********************** impact. Supervisor ******, teller #***, was rude and unhelpful, exacerbating my distress.Lack of Transparency: The credit union's insistence on agreeing with unavailable information undermines my ability to resolve these issues.Request for Resolution: I request the reversal of all excessive fees and penalties. Given my account's current status, these fees should not have been assessed. I also seek a formal apology for poor customer service and assurance of professional future interactions.I trust you will address my complaint promptly and offer a satisfactory resolution.

• Initial Complaint

  Date:08/21/2024

  Type:Service or Repair Issues
  Status:

  UnansweredMore 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.

  We were sold a protection plan that we would not benefit from. My mother passed away the bank collected their money and from the protection plan and still took the merchandise. We want the loan paid off or the money that was paid out for the protection plan reimbursed to us.they took advantage of a senior by selling her a protection plan that she was not qualified or benefit from

• Initial Complaint

  Date:02/15/2023

  Type:Product 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.

  Around the second week of January 2023 I made a payment of $500 to Democracy FCU in order to bring my auto loan current in a deal brokered by their collection agent ***************************** after I refused to take the vehicle to ******** at ******** request to sell it. Democracy was made aware I was filing Chapter 7 bankruptcy and their was a stay in order on January 6th, 2023. ******* told me that the cross collateral would be taken off the vehicle so that I could keep it. After I made the payment I never heard back from Democracy on the status of the cross collateral or new documents to be sent to me affirming the removal for my records. I reached out to my attorney because I felt at this point I was being scammed because no one at Democracy would take my call or reply to my emails. My attorney informed me that they probably did not reply because what they did was in violation of my bankruptcy stay. My attorney reached out and Democracy agreed to issue a refund for the $500 and to pick the vehicle up. This was arranged around the end of January. As of today I have received neither my refund, nor has anyone called to pick the vehicle up. I will not take the vehicle anywhere to sell it as ***************** suggested, I want Democracy to come and retrieve their property or give me the title in exchange for the $500 they illegally collected from me. I gave the $500 in cash I want my cash back, waiting 2-3 weeks for a check is insane.

  Business Response

  Date: 07/11/2023

  July 7, 2023 
  

  To Whom It May Concern, 
  

  I am responding on behalf of *** ***** *****, regarding case ##******** initiated by *** ******** ***** ****** *** to the Better Business Bureau on February 15, 2023. 
  

  Democracy FCU contacted *** ********* on 11/29/2022 via email, and she responded via email advising the  credit union that she had retained services for bankruptcy and providing the attorney information. On  11/29/2022, the Collections Manager contacted her attorney and was advised that she retained services for  bankruptcy but did not have a case number. The attorney was made aware of the vehicle loan the member held  and it was currently delinquent. The attorney granted permission to speak with the member regarding her  vehicle loan and work out payment arrangements. 
  

  Collections reached out to the member on 12/1/2022, and a message was left on her voicemail to return a call.  On 12/16/2022, the member went into the Alexandria branch to make a payment on the vehicle as advised by  her attorney and stated she would continue to make payments as she would like to keep her car. The member  was advised that she will need to consult with her attorney about reaffirmation. It should not be a problem, as  the credit union would allow her to keep her vehicle if she continued to make payments. 
  

  *** ********* continued to make payments (3). The Credit Union thought she was working out a  reaffirmation agreement with her attorney until 1/25/2023. Collections received an email from the member  advising that she wanted to surrender her vehicle. Collections contacted the member as we were unaware she  had received a Bankruptcy Case Number on 01/6/2023, and her attorney advised her she was not allowed to keep the vehicle. The member paid the vehicle on 1/24/2023 at the Alexandria branch, a day before she  contacted the credit union to inform us that she was under an automatic stay. Once *** ********* provided  her case number, Collections told her that DFCU could no longer communicate with her without direction from  her attorney and that we would need the reaffirmation agreement for her to keep her car. On 2/1/2023, the  Collection Manager reached out to the Attorney due to *** ********* sending several messages and  contacting the credit union only to be advised we could not speak wither her. The attorney stated that *** ********* was not allowed to keep her car; the Collections Manager advised the attorney of the $500.00  payment made on 1/24/2023, and he requested that the payment be reversed and sent to his office. The  attorney stated that he would contact *** ********* once the funds were received so she can come to pick  them up, and they will contact DFCU to set up the voluntary repossession of the vehicle. 
  

  On 2/7/2023, the check was *** ** standard overnight, tracking number ************ to the member’s attorney and received at their office on Thursday, February 9, 2023, at 10:43 am. On 2/15/2023, the attorney’s office contacted the credit union and advised that the member would like to come to drop off the vehicle and gave the Collections Manager permission to contact *** ********* and set up the arrangements. The attorney  also advised the Collections Manager that *** ********* came by their office to pick up the $500.00 check.
  

  On 2/15/2023, Collections set up the arrangement for a voluntary repossession. *** ********* surrendered  the vehicle at the DFCU Alexandria Branch location at 3:22 pm. The Collections Manager notified the attorney  that DFCU has the vehicle.  
  

  Democracy worked directly with her attorney on this matter and once the vehicle was retrieved on 02/16/2023,  no other communication took place.  
  

  Should you need to contact me regarding this matter, please feel free to do so. I can be reached at ******** **** between 9 am- 5 pm EST, Monday – Friday. 
  

  Sincerely, 
  *** ******* 
  Collections Manager 
  Democracy Federal Credit Union