Kinecta Federal Credit Union Does not back up its customers and takes money Manhattan Beach, California

Having worked in the credit card industry I can tell you right off the bat, it sounds like your credit union did everything exactly the way it should have been done. You either misinterpreted or chose to see it "your way".

When a customer files a dispute on a credit card (debit cards are similar, but different), the bank (and I assume it works the same way with credit unions) may issue a "provisional credit." They always tell you this, either on the phone when you call, or in writing in the forms you fill out. What this means is they will TEMPORARILY credit back the charge you are disputing pending the outcome of the dispute.

You MUST first try to work the dispute out with the merchant before involving the bank. Too many people think they can use the bank against the merchant by filing a dispute with the bank FIRST, thinking the merchant will automatically get the money taken from them, and THEN calling the merchant with a "the bank is on my side" attitude. It does not work that way. The bank is not taking sides, they are obeying the laws.

Once you file the dispute paperwork with the bank, outlining what attempts you made with the merchant to resolve the problem, the bank will contact the merchant letting them know you are disputing the charge, and giving them 30 days to prove their side (i.e., they DID provide the services, they credited you back already, etc.). If the bank does not hear from the merchant within the 30 day period, the provisional credit becomes permanent.

If, however, the merchant proves to the bank's satisfaction that you do not deserve a credit (that you HAVE received what you paid for, etc.) then the bank will reverse the provisional credit from your account. It sounds like this is what occurred.

It also would be the reason the credit union is redirecting you to contact the merchant for further resolution. The credit union would have notified you of this in writing as well. I do not believe you had no notice either that the credit was temporary, or that it was being reversed. It IS likely that they reversed the credit prior to you receiving notice of it, and that you had made purchases with those funds that now caused you to overdraw your account. This, however, it not the credit union's fault.

You were not treated like a second class citizen. You, like the rest of us, are subject to the rules and regulations of the banks and the government. The rules are in place to protect customers AND merchants, not one above the other. You are not automatically right and neither is the merchant. Any bank or credit union you use in the future will operate similarly. You may be disappointed, but hopefully you are wiser.