Can a Credit Union change the terms of a 5 year certificate of deposit before the maturity date?

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Can a Credit Union change the terms of a 5 year certificate of deposit before the maturity date?

A credit union issued me 9, 5 year CD’s 6 weeks ago. The APY was 2.768. After the 5th of this month they claimed a mistake was made and they want me to sign papers changing the yield to 2.30 APY. I objected, so they then upped the rate to 2.55. Do I have the right to demand that they live up to the original agreement?

Asked on January 8, 2012 under Business Law, Florida


William Price / Growthlaw

Answered 11 years ago | Contributor

This depends on the interest rate terms of the original agreement. If they were linked to particular indexes, or otherwise variable, the credit union may be able to change amounts payable. Similarly, some CD agreements allow unilateral changes. Most, however, require your consent to be changed, and you are normally not required to do so.

To get results might require you to complain to the company, to complain to their regulator, or to use a lawyer to send them notes and/or to litigate on your behalf. The amount in the CD might determine whether or not you want to front the costs for lawyer letters or litigation. If you did litigate, the Consumer Fraud and Deceptive Business Practices Act might give you lawyer fees and court costs, as well as recovery of whatever interest they owed you. 

You could also possibly gain more if the credit union has done the same thing to multiple others in the group that has their funds in the credit union. In that case, a class action against the credit union might be possible.


Hope this helps,


Bill Price

William A. Price

Attorney at Law

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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