Date Received: 2018-12-26
Issue: Problem caused by your funds being low
Subissue: Bounced checks or returned payments
Consumer Complaint: Few months ago I had to report several fraud claims because some transactions were still pending, some I missed on my phone and some I had to investigate further. Still, NFCU has no way for consumers to modify or add to an existing fraud claim. Next thing I know, without calling me or anything they cancel my VISA DEBIT ATM Card to my ONLY account. Said I had too many fraud claims, then denied the last claim that they used to freeze my ability to access my funds. So, jump forward to now, I still have a checking and savings account with NFCU and the ONLY way to deposit funds, or access my funds is to go into a branch. Im been out on XXXX and FMLA so when my job messed up my last 3 direct deposits and mailed checks I had no way to deposit my checks and they bounced stuff and gave me more fees. Then with the holidays they closed early. So, I try depositing a check with the mobile app and its denied. Still NFCU is racking up more fees on my accounts. Also, have a NFCU Visa Rewards and I tried to deposit a XXXX check on that card and was told basically if NFCU liked me I could but as of XX/XX/XXXX they will not be reinstating my Visa card on that account either. The account they kept letting charges go through when there was no limit to cover it. Then sent those same charges over to my Checking account. So, without even a phone call from this place they have completely closed and restricted anyway for me to access my own accounts. Ive even asked for just anATM Card to make deposits and they said they dont have savings acct ATM cards. Nevertheless, you fined NFCU over {$23.00} million dollars in XXXX for doing similar actions to consumers. Also NFCU was advised to come up with rules guidelines and they still havent. Read below : WASHINGTON, D.C. Today the Consumer Financial Protection Bureau ( CFPB ) took action against Navy Federal Credit Union for making false threats about debt collection to its members, which include active-duty military, retired servicemembers, and their families. The credit union also unfairly restricted account access when members had a delinquent loan. Navy Federal Credit Union is correcting its debt collection practices and will pay roughly {$23.00} million in redress to victims along with a civil money penalty of {$5.00} million. Navy Federal Credit Union misled its members about its debt collection practices and froze consumers out from their own accounts, said CFPB Director XXXX XXXX. Financial institutions have a right to collect money that is due to them, but they must comply with federal laws as they do so. Navy Federal Credit Union is a federal credit union based in XXXX, Va. As a credit union, it offers a wide range of consumer financial products and services, including deposit accounts and loans. Membership in the credit union is limited to consumers who are, or have been, U.S. military servicemembers, Department of Defense civilian employees or contractors, government employees assigned to Department of Defense installations, and their immediate family members. It is the largest credit union in the country, with more than {$73.00} billion in assets as of XX/XX/XXXX. The CFPB investigation found that Navy Federal Credit Union deceived consumers to get them to pay delinquent accounts. The credit union falsely threatened severe actions when, in fact, it seldom took such actions or did not have authorization to take them. The credit union also cut off members electronic access to their accounts and bank cards if they did not pay overdue loans. Hundreds of thousands of consumers were affected by these practices, which occurred between XX/XX/XXXX and XX/XX/XXXX. The practices violated the Dodd-Frank Wall Street Reform and Consumer Protection Act. Specifically, the CFPB found that Navy Federal Credit Union : Falsely threatened legal action and wage garnishment : The credit union sent letters to members threatening to take legal action unless they made a payment. But in reality, it seldom took any such actions. The CFPB found that the credit unions message to consumers of pay or be sued was inaccurate about 97 percent of the time, even among consumers who did not make a payment in response to the letters. The credit unions representatives also called members with similar verbal threats of legal action. And the credit union threatened to garnish wages when it had no intention or authority to do so. Falsely threatened to contact commanding officers to pressure servicemembers to repay : The credit union sent letters to dozens of servicemembers threatening that the credit union would contact their commanding officers if they did not promptly make a payment. The credit unions representatives also communicated these threats by telephone. For members of the military, consumer credit problems can result in disciplinary proceedings or lead to revocation of a security clearance. The credit union was not authorized and did not intend to contact the servicemembers chains of command about the debts it was attempting to collect. Misrepresented credit consequences of falling behind on a loan : The credit union sent about 68,000 letters to members misrepresenting the credit consequences of falling behind on a Navy Federal Credit Union loan. Many of the letters said that consumers would find it difficult, if not impossible to obtain additional credit because they were behind on their loan. But the credit union had no basis for that claim, as it did not review consumer credit files before sending the letters. The credit union also misrepresented its influence on a consumers credit rating, implying that it could raise or lower the rating or affect a consumers access to credit. As a furnisher, the credit union could supply information to the credit reporting companies but it could not determine a consumers credit score. Illegally froze members access to their accounts : The credit union froze electronic account access and disabled electronic services for about 700,000 accounts after consumers became delinquent on a Navy Federal Credit Union credit product. This meant delinquency on a loan could shut down a consumers debit card, ATM, and online access to the consumers checking account. The only account actions consumers could take online would be to make payments on delinquent or overdrawn accounts. Enforcement Action Pursuant to the Dodd-Frank Act, the CFPB has the authority to take action against institutions or individuals engaging in unfair or deceptive acts or practices or that otherwise violate federal consumer financial laws. Under the terms of the order, Navy Federal Credit Union is required to : Pay victims {$23.00} million : The credit union is required to pay roughly {$23.00} million in compensation to consumers who received threatening letters. Most will be eligible for redress if they received one of the deceptive debt collection letters and they made a payment to the credit union within 60 days of that letter. In addition, all consumers who received the letter threatening to contact their commanding officer will receive at least {$1000.00} in compensation. The credit union will contact consumer So how is it XXXX, almost XX/XX/XXXX and they are still cutting off members electronic access to their accounts and bank cards if they report fraud too much or if they think you are being reckless or if they did not pay overdue loans etc. So, Ive had plenty of money for days but no way to even make a deposit into my own accounts. I appealed and got nowhere. This messes with my job, my insurance bounced from bill pay because I couldnt deposit money. I need help! I told the NFCU credit card department about my checks being messed up and mailed and they just seemed to not care and basically told me I was getting fees for not telling them 48 hrs sooner. I didnt know 48 hrs ago. So, they are closing my account when my card expires in XX/XX/XXXX. I should be able to make deposits and withdrawals from my own accounts. I need help because they are still doing this to others too. Please help me. Im hundreds negative now when I should be plus if I would of been able to deposit my check Friday after hrs and on Saturday after hrs. Two checks for thousands and they are steady bouncing items. Please call XXXX
Company Response: Company believes it acted appropriately as authorized by contract or law
State: DE
Zip: 19709
Submitted Via: Web
Date Sent: 2018-12-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-24
Issue: Managing an account
Subissue: Problem using a debit or ATM card
Consumer Complaint: I am trying to resolve an issue i have with Navy Federal. My checking account was closed due to an excessive overdraft that i didn't authorize. My debit card was used to withdraw funds that weren't available but were approved by my bank. I've reached out to the via phone an mail after i tried to open a new account but was denied due to those fraudulent transactions that caused my checking account to be closed. I don't want that account to be reported to XXXX or added as a derogatory account on my credit report. I have researched others who've had similar issues and became aware of other customers with this problem as well as having their Navy Federal accounts hacked by others.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: SC
Zip: 29579
Submitted Via: Web
Date Sent: 2018-12-24
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-22
Issue: Managing an account
Subissue: Deposits and withdrawals
Consumer Complaint: Friday, XX/XX/2018, I received a deposit/credit from a merchant for {$35.00}. Navy Federal transferred that money from my checking account to one of my credit cards, without my permission. I am days behind on the card, but blocking me away from my checking account is absurd, especially this being my first time. I haven't had any income for months now and I tried to get help before it got to this.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: SC
Zip: XXXXX
Submitted Via: Web
Date Sent: 2018-12-22
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-22
Issue: Problem caused by your funds being low
Subissue: Non-sufficient funds and associated fees
Consumer Complaint: Dear Sir/ Madam, I'm a current member of the Navy Federal Credit Union and recently I had two return check fees of XXXX for two different amounts. On XX/XX/18 a {$29.00} returned check fee was applied to my checking account for a {$12.00} insufficient funds, but at the time it wasn't save to put any money into the accounts at Navy Federal Credit Union. Because during the weekend of the XX/XX/18 thru XX/XX/18 the bank was having banking issues with the system. On XX/XX/18, I was charged another {$29.00} returned check fee for insufficient funds of {$.00} cents. On XX/XX/18 the Navy Federal Credit Union system issues were worse. Members were missing their deposits, aa well as other serious issues, which lead to them turning phone lines off. The phone lines rang out busy signal for maybe like 3 hours or more. When I finally got through a representative I was told that they couldn't remove fees because I've had it done before in the past. I would like for someone to help me resolve this matter as well as look into another over charges on my account, such as finance charges on loans. At this point I would just like to make sure that I'm not being over charge on this as well.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MD
Zip: 20602
Submitted Via: Web
Date Sent: 2018-12-22
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-21
Issue: Trouble using your card
Subissue: Can't use card to make purchases
Consumer Complaint: contacted Navy Federal in Early XXXX to confirm travel notification and that my credit card with " no foreign transaction fees '' will work during upcoming trip to XXXX. was told it will work, and to put the alert on via the website. did so for both the credit and debit cards. the debit card has a foreign transaction fee. the credit card will not work. i have tried numerous times to contact navy federal while abroad, and they tell me they can not assist me because there is a country sanction from office of foreign asset control. why does one card work, and not the other. why is it the card with foreign ttsnsaction fees that works, and not the other. it feels as though they are steering transactions towards the card with higher fees.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OK
Zip: 741XX
Submitted Via: Web
Date Sent: 2018-12-21
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-20
Issue: Managing an account
Subissue: Banking errors
Consumer Complaint: Navy has been battling for 203 weeks with banking quirks due to a system upgrade. they knew there were issues. now they are still hiding the issues and refuse to work with customers. direct deposit checks are not processed. money is withheld by nfcu ( interest free money? ) and i still do not have my credit into my account. i need my funds. these types of issues are starting to become the norm for nfcu.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 76016
Submitted Via: Web
Date Sent: 2018-12-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-20
Issue: Problem with a credit reporting company's investigation into an existing problem
Subissue: Was not notified of investigation status or results
Consumer Complaint: I sent all three credit bureaus a certified letter to investigate this Navy federal cu hard inquiry XX/XX/18 and XX/XX/18 from my credit reports. It has been well over 60 days and still not heard from any of the bureau. This violates the FCRA laws that are in place to protect consumers. The bureaus are to report accurate information and respond to disputes in a timely manner. This hard inquiry has caused hardship to me and stress as well as I being denied credit and home loans.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WI
Zip: 53224
Submitted Via: Web
Date Sent: 2018-12-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-20
Issue: Problem with a credit reporting company's investigation into an existing problem
Subissue: Was not notified of investigation status or results
Consumer Complaint: I sent a certified letter to all three credit bureaus, to have an investigation done about this hard inquiry from navy federal credit union on XX/XX/18. It's been well I've r99 days and I've heard nothing yet. Which violated the FCRA, law that credit bureaus must report accurate information and respond to consumers within a timely manner. This hard inquiry has caused a great hardship on my life i've been denied home loans and credit and my credit scores dropped drastically because of it.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: WI
Zip: 53224
Submitted Via: Web
Date Sent: 2018-12-20
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-18
Issue: Problem with a lender or other company charging your account
Subissue: Transaction was not authorized
Consumer Complaint: On XX/XX/2018 a withdraw of {$2500.00} was made by Navy Federal Credit Union ( NFCU ) from my XXXX checking account. They said it was " preauthorized '' which I didn't even know who they were. I told them to send me proof of my signature on anything for which I knew there was none, because I am the only person on my account and knew I didn't sign anything. They said there was no way of providing me anything proving my signature on anything.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MI
Zip: 496XX
Submitted Via: Web
Date Sent: 2018-12-18
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2018-12-16
Issue: Attempts to collect debt not owed
Subissue: Debt is not yours
Consumer Complaint: Navy Federal Banking. They are looking for people who are not at my phone number. XX/XX/18 spoke with manager after months of daily phone calls with messages left on my answering machine and was assured they would stop, They continue to call at all hours and on weekends. XX/XX/18 another call looking for the same people. Spoke again with a manager who gave me the address for Navy Federal legal department who I will be writing to let them know I will be seeking legal action if the calls do not stop.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: 23454
Submitted Via: Web
Date Sent: 2018-12-16
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A