Arizona Federal Credit Union

by Linda
(Phoenix, Arizona)

I approached AZFCU in April 2007 seeking to refinance a very high interest rate loan (predatory lender) Accredited Home Lenders. AZFCU rep told me that they couldn't refi because of my poor credit history BUT they could offer me a HELOC (home equity line of credit) based on my home equity - then $100,000. With that money, I could manage the high primary mortgage payments and repay the HELOC until August when I would be a "seasoned buyer," my prepay penalty expired and I could get my credit score from under 500 to over 700 - which would qualify me to refi both loans into one lower interest rate and lower monthly payment loan. They did not inform me that they don't "participate in loan forgiveness programs" as other lenders do. Had I known that I would have approached other lenders. I managed to comply with all of their requirements and in August returned to refi the two loans. They told me that they couldn't do that because the government had tightened restrictions on their lending. I then had two high interest rate, high monthly payment, loans to contend with. That November I became very ill and had surgery that subsequently became infected. I was put on a wound care vacuum for months, causing me to stop working as a Certified Substitute Teacher and hence restoring to living on my meager social security (about 4800 monthly). I took in a tenant who helped me with the utility bills and even helped me to pay a few mortgage payments but matters worsened and I lost all of the equity in the house. When I made the HELOC
in 2007, the house appraised at $260,000. I sought a Reverse Mortgage from the primary lender and they have agreed to settle for $87,000 of the $160,000 I owe them. In March 2009 I entered into a contract with Bank of America. All went well until I notified AZFCU's attorney, Mark Kirkorsky, of the pending closing. We rec3eived a new appraisal of $155,000, leaving only $1,000 to repay the HELOC. Kirkorsky wouldn't hear of it. He served a Summons & Complaint on my tenant whilst I was in the hospital! Before I could submit my Answer, he moved for default judgment. I managed to Answer in time and got an Arbitration Hearing. On September 23,2009, I appeared with my tenant (witness) only to find the Arbitrator and attorneys greeting each other like long lost friends. A fair hearing? I think not. I told that that "time is of the essence" and BofA is eager to close on the Reverse mortgage. We sat down and hammered out an Agreement. They agreed to release the Deed of Trust for $1,000 compensation but I in turn had to accept payment in full of the $20,000 HELOC despsit my loss of equity and no means with which to repay the loan (I fact I disclosed at the meeting) AND to repay at a yearly interest rate of 9.25% yearly for the duration of the loan! They promised not to enter judgment for six months in order to give me time to hopefully dispute the loan's validity in light of the vitiating factors. Kirlorsky emailed me the papers and demanded I sign and return them by October 14th. I emailed back that I had reservations about repaying the loan as I have no idea where the money will come from and also that I felt I was under duress because I need them to release the Deed so I ca close. In the meantime, the primary lender became impatient and served me with a Trustee Sale Notice for December 15th = aware that I am in contract with another bank and also aware that there is pending litigation which by law should stall any sales of the premises! Because of the delay on AZFCU's part, we had to rework the contract with BofA and get a new appraisal. We don't know if the property will appraise favorably and consequently I may well lose my home because of these unethical collection practices and strong armed tactics. Kirkorsky did not honor the Agreement even though the papers were signed and returned to him on October 14th. Instead he emailed me an enormous "Motion to Vacate or Enforce" that he threatens to send to the court. Is this not obstructing justice? He also alluded in his defamatory emails that "no judge in this state cares about your problems." That's encouraging news - I don't stand a chance at a fair hearing and my rights to due proce4ss are being seriously jeopardized not to mention my constitutional rights to life, liberty and property! This is certainly worthy of a test case against predatory lenders and why 1 in 2 Arizonans are facing Foreclosure. HELP! What do I do now? I don't have money for an attorney. As a former Legal Assistant, I am representing myself in this matter.

Comments for Arizona Federal Credit Union

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Oct 19, 2009
Your HELOC debt
by: Gerri


I understand you don't feel you can afford an attorney, but I think you are at a significant disadvantage if you don't get some legal help - at least to explore your options. As you point out, there has been a lot of news lately surrounding the fact that arbitration panels are often not considered fair and impartial venues for consumers.

If you believe the loan was fraudulently made or represented to you, then you can talk with a consumer law attorney with experience in mortgage/Truth-In-Lending cases. As you probably know, he or she may offer a free consultation to help you determine if you have a case.

The other option is to talk with a a bankruptcy attorney who will provide an initial evaluation at no charge. At a minimum, the attorney may be able to provide you with an overview of how courts are handling/viewing situations like yours. As you mention, many Arizonans are losing their homes, and the attorney will be able to tell you what's going on.

Unfortunately, you have a lot at stake here - your home - and both lenders and courts are flooded right now with people in dire straights. I would really encourage you to get some help to see what your options may be.

Jul 14, 2010
And those who dont pay are crooks?
by: Anonymous

This attorney seems no better than those the FBI locks up for RICO, except for the fact the State of Arizona gives this guy a law license to justify his criminal behavior.

Amazing how the court systems serve big business when the courts are made up of lawyers.

Maybe the Justice Dept should investigate the attorney, I'd bet they could find some dirty laundry like the Mafia bosses they are famous for tracking.

Dec 23, 2010
I hate these people
by: Anonymous

I am dealing with this same law firm my self currently as I am writing this response. They have debt collectors contact you who talk down at you as if you are a piece of garbage for not paying a debt. Unfortunately the true pieces of garbage are the banks and this power hungry law firm that knows damn well that most of these banks lent monies to people who were less qualified or would barely scrape by paying back their debts.

Don't sign nothing with these people! Period. Seek some serious legal advice and fight these people head on. Their practices need to be exposed. They are loan sharks who use strong arm tactics to get you to pay back what you owe. Monitor them closely and if they violate the law an any way through unfair debt collection processes then contact the district attorney's office.

Do not allow them to talk down to you and treat you as if your some irresponsible piece of human garbage because you had trouble repaying your loan. People loose their jobs, and have financial difficulty all the time. The banks are the reason why we are in this mess. And yes it's true that many American's bit off more then they could chew and that is why they are facing foreclosure.

I refuse to let this law firm push me around and I refuse to let them treat me like garbage. I will spit in their face if I have to and will not get knocked down by this power hungry law firm.

Seek a good attorney and tear these pricks a new a-hole!

Jul 13, 2011
State of Arizona Bar Complaint
by: Anonymous

This attorney already has had one discipline matter before the State Bar. File a complaint with the State Bar; second complaints are pursued seriously and there is an excellent chance he will get his Attorney license suspended or even disbarred. BUT IT TAKES A SIMPLE COMPLAINT LETTER TO THE STATE BAR OF ARIZONA. DO IT!!

Sep 17, 2011
by: Anonymous

People need to understand that if they sign something any loan agreement they know what they are signing. It's just that people don't read the full agreements and that they are in a hurry to get the money but not in a hurry to read through the documents.

If you borrow the money you should repay the money. If you cant there are other ways such as bankruptcy however you can't always get rid of line of credits or 2nd mortgages in all bankruptcies. Also bankruptcy will hurt your credit.

I am someone that says if you owe it pay it. You gained the benefits of using the money.

Nov 06, 2011
by: Anonymous

If the money was loaned under false pretenses or the terms are misrepresented, then the consumer has the right to argue the loan. No one deserves being bullied or force. And the Constitution guarantees a fair trial, which should be extended to all legal hearings.

Dec 20, 2011
file a complaint
by: Anonymous

Agreed. File complaint.

Jan 10, 2012
AZFCU and Kirkorsky
by: Anonymous

We too have had dealings with this law firm over a repossessed vehicle. The payments we make of over $200 a month don't seem to be applied correctly and we now owe more than we did originally, I mean seriously, it never goes down.

We threatened to contact the AZ Attorney Generals Office because they would not give us a break down of our payments over the past few years, they scrambled to do so.

If we would all write to the AZ Attorney Generals office and Az Bar Association perhaps we can figure out how to file a civil law suit against this firm.

They are sharks, no better but perhaps worse as many have gotten out of a sharks strong hold!

Nov 28, 2012
check this out!
by: Anonymous

Son obtained a heloc and his ex fiancee was withdrawing large sums of money without his knowledge (she was giving it to her parents and boyfriend so i know he did not know) to the tune of 65k. My problem with the situation is why did the Azfcu loan 65k on a home that was only worth the original loan amount, and did so as property values were crashing (08,09). Not very nice of them. He is now having his waged garnished and had to move home. The original heloc amount was for 10k to do some home improvements which he did.

Jan 24, 2013
same issues
by: Anonymous

Can any one suggest a good lawyer who can handle this firm?

Reply from

You may want to visit our page about getting a free consultation with a consumer law attorney.

Feb 24, 2013
Beyond frustrated
by: MatthewG

I had my vehicle repossed and have had the pleasure(i mean utter disgust)of dealing with this gentleman and his paper partners. I had my pay garnished and was okay with the situation to hold up my end. But now they are going after me personally and inquiring with my current auto loan company about transactions and even my loan app and payment history. I payed for 18 month to sufice the bogus amount that was awarded by the court including very inflated lawyer fee and surcharge for filing paper work and also an outrageous amount on the vehicle. This should of been taken care of and closed the writ. But I just received this letter and I am at a lose and confused of the situation. Has anyone else dealt with this before? Especially with Mr. Kirkorsky? I have done some research and found that he is getting some legal attention about his ethics and abuse of collecting debts by his plantiffs. Any advise or direction would be greatly appreciated

Mar 19, 2013
Ripp Off watch out for AZFCU
by: Anonymous

AZFCU is a rip off. I have been contacted by he firm you all are talking about. I lost my house in Jan 2008 had an ARM that went out of control before we could refinace it due to the market conditions. We owed more than the house was worth at the time and nobody would refinace it at the time. AZFCU was the 2nd Mortgage (HELCO Loan). They are sueing us for non payment. We tried to pay them even after the foreclosure and then I lost my for 6 months. I was out of a job and all they cared about was the payment that I could not make at the time. As soon as I got another job I called AZFCU and request them to refinace the loan or restart the loan so I can make payments again trying to pay the loan. They refused and told me to contact the Law Firm. I was trying to do the right thing and all I got was a law suite agianst me pending 25 March 2013. I am filing Bankruptcy becuase they forced me in that direction after all all the hard work and efforts to try to do the right thing. Just remember they do not care of about there customers or situations that arise thats out of your control. Me it was my job. My job went and I had a extreme hardship. All they care about is the money. By the way if you fax all the infomation for hardship they will turn and use it against you in court and they will use all the information posible to make you look bad even though you tried to do whats right and pay them. So, be careful. They are crooks and AZFCU is as well.

Mar 17, 2014
Mark A Kirkorsky
by: Anonymous

Hello, I am looking for more victims affected by Kirkosky and their attorneys who are willing to share their evidence and testimonial of abuse and oppression under the hands of this law firm and their attorneys. I will be filing a complaint with the FTC, The Federal Debt Consumer Protection Board and the AZ. Secretary of State.

A judgment has been entered against you without proper service or
That you are going through litigation at this moment without proper service
If you can prove that another collection agencie attempted to collect the same debt they are now trying to collect.
If AZFCU Never notify you that they sold, transfer or referred the debt to a collection agency.
If in any way, form or fashion you are being harassed by Kirkorky's attorneys and/or employees, do yourself a favor and and write me an email to

Jul 16, 2014
Unusual Payment Breakdowns Kirkorsky
by: Tim from Gilbert

So we too had a judgment against us from AFCU with a balance of $9700.00. Attorney amount was $1000.00 with court fees of $200.00. These amounts were stipulated in the judgment. After paying $2900.00 in interest we are just now starting to pay down the principal but we are still paying interest in addition to principal! Waiting on a response from Kirkorsky's office at this time.

Aug 25, 2014
by: Anonymous

I just received a letter from this law firm and it was sent to my sister house that live in Blue springs mo. How they got this address I do not know .I have to file bankruptcy also due to a repo and this is why there coming after me . I cannot afford a garnishment for I am making less than I was when I received the car there talking about . The ordinals price was 12,000 I paid $5000 and there saying I owe $10,000.I am in Las Vegas , and there sending letters to Missouri .

Jul 16, 2015
They Won't Stop!
by: Anonymous

We are still dealing with this law firm from a foreclosure we had in 2008. This law firm pulls my credit every 3 months. They have garnished my wages even after I moved back home to Texas. The debt still shows up as AZFED on my credit report. They show it as a profit and loss and not a judgment so that it does not affect my ability to find work in my sector. They report the original balance amount on the credit report then show I make 3 payments every year to keep the debt relevant on my credit report. They only do this through Trans Union. It has prevented me from being able to get any kind of credit. I can't file bankruptcy. And at my age I do not want to. 25% of my salary isn't much and I will end up owing them on an $86k judgment until the day I die. Every year the balance seems to grow. We have sought legal council and there is nothing we can do. Just wait and live off of scraps at over 50 years old. And get this I was an employee at AZFED in their mortgage department. I was fired after my husband was laid off when the mortgage market busted. I was fired because I couldn't afford to pay my mortgage because my husband couldn't work. Talk about insult to injury. A lot of attorneys wouldn't even consider going up against this firm.

Nov 11, 2015
We Have Tried..AZ Attorney General Can't Help!
by: Anonymous

We have been battling this company since forever it seems, but it has only been since 2007. They never give honest answers and never call back when they say they will.

In 8 years on a judgement and fees of just under $15K we still owe almost $8K.

They show two interest rates one on what you owe and they charge another one on your fee's and costs bringing it up to almost 24% interest.
We have had to almost pull teeth to get balances and when approached with trying to settle this, they told us that we needed to contact AZFEDCU and since it has already been settled in a court room, AZFEDCU won't talk to us at all.

We have paid almost $10000 in interest alone and it never goes away.

My recommendation to anyone who receives notice from this company is to immediately file bankruptcy, you will be far better off than paying them until the day you die.

They know the loop holes and they are sharks. Repeated complaints to the AZAG gets no where and I am not sure going to the AZ Bar would help either.

Someday I have hopes that they will be exposed for the frauds they are and for the laws they break under federal collection practices.

Until then I pray no one else ever has to deal with them!

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