That insurance ad with your lender’s name on it isn’t really from your lender
(KUTV) The letter several Members First Credit Union customers say they received sure looks like it’s from the Brigham City based lender. But Brad Barber, the president and CEO, says it's not.
The letter is really from a third party company that’s trying to sell Barber’s customers insurance.
“The way that they put the credit union's name makes it look like it's coming from us,” he said. “So when people get it they have this feeling of urgency.”
It's only by reading the tiny print at the bottom that a recipient learns the truth. It reads, "Not affiliated with any lender."
“Is it legal? Probably. Is it moral because of the way that's it's laid out? I don't think it is,” Barber said.
The company that's actually sending these letters is North Carolina based Mortgage Protection Insurance Services. Members First Credit Union is not the only lender frustrated with the company.
After receiving complaints, both the states of New Hampshire and Illinois slapped the company with cease and desist orders, demanding it stop using the name of financial institutions in its advertising in those states.
Get Gephardt called Mortgage Protection Insurance Services to ask about all of this. Messages were not returned.
As for Barber, he hopes folks see this story and are on the lookout for what he thinks are deceptive solicitations using his credit union's name.
Barber says the letters appear to target folks who recently signed up for a mortgage or refinanced their existing home loan. Those loans as well as who received them, and at what address, are publicly recorded with county offices.
If you get a letter that you suspect might not be from your lender, Barber suggests calling your lender directly and consider filing a complaint with the Utah Division of Consumer Protection.