Okanagan couple warns others to shop around before getting a mortgage

A Lake Country woman won’t be banking with Interior Savings Credit Union anymore.

Rebecca Leboe has been a member with the Interior Savings Credit Union for more than 25 years, but that is all changing now because of a stressful mortgage situation involving the bank.

Leboe and her husband purchased a condo in 2008 and had their very first mortgage with the local Credit Union. The couple was 47 days away from the end of their term and had one payment left of $1,100 for the current contract.

The Leboe’s decided to sell the condo with a completion date 47 days prior to the renewal date of the term.

Credit Union charged the family an accrued interest charge of $1,595 to make up for the lost interest of paying it off 47 days early. The bank also planned to charge an additional penalty of three months interest totaling $2,460.76.

Nate Flavel, the realtor for the family had a problem with the three extra months’ worth of interest being charged.

“My clients are completely expecting to pay the interest and obligations on the existing mortgage but the idea that the local credit union would insist on taking an additional $2,500 fee - “just because they can” is extremely unethical in our opinion and something they need to be held accountable for when they constantly market that they are about the members and our community against the big banks,” explained Flavel.

“Long story is Interior savings is out nothing and is just taking advantage of the Leboe’s for an additional $2,500. They have no option to avoid this and no matter what solutions they have presented. In fact when confronted the Branch Manager Bonnie told us quite bluntly they weren’t just about the members and community - more importantly - they exist to make money regardless of whether it’s fair or ethical.”

After feeling like she was pushed around Rebecca sent an email to the Board of Directors for the Credit Union about her situation. On Thursday a representative with the bank contacted Rebecca saying they would waive all of the fees.

When she received word that they would not have to pay the extra interest fees, Rebecca was delighted. That feeling however only lasted several minutes.

“We close [Friday] and the bank called me [Friday] and said actually they’re still going to charge me the $1,200. They sent paperwork to the lawyer on Thursday that said the bank was waiving it all. We close in the matter of hours and they’re changing it all around and turning back.”

Rebecca felt hurt after Interior Savings said they would waive all fees, and then changed their minds. After voicing her opinion on the bank changing their minds, they decided again to waive the fees and honour what they said previously.

“In the end they did honour it, they did waive the $2,400 so I’m super thankful for that. But wow, what a headache,” Rebecca explained.

A spokesperson with Credit Union said that when it comes to mortgages there are stipulations, specifications and legal agreements that a borrower has to sign with their lender.

Rebecca was aware of this, but she however said she didn’t feel like the lender explained what she was signing.

“I put my trust into the Interior Savings representative to explain what I was signing properly, and it wasn’t explained properly. I 100 per cent attribute having a realtor on this case for the reason that I did fight it. If I hadn’t have had a realtor I would have thought it sucks, but it is what it is, and I would have paid it. Instead I had a professional who knows what they’re looking at who fought for me, and knew this was wrong.”

After going through this while seven months pregnant, Rebecca said she will end her 25 year membership and bank elsewhere now.

“I can’t in all good faith continue banking with a company that has the ability to waive the fee, but forces my hand to go as far as I did. They’re supposed to be about their members.”

The spokesperson with Credit Union said the bank is for the members.

“We are here to service the member, we always try to look at the best interest of the Credit Union as a whole and balance that with the needs of the member.”