Consumer complaint received 2023-12-21
Company: NAVY FEDERAL CREDIT UNION
State: GA
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
On the morning of Tuesday XX/XX/XXXX, I visited the Navy Federal Branch in XXXX, Georgia, located at XXXX XXXX XXXXXXXX XXXX My intention was to have several indenture securities stamped with a medallion signature guarantee so that I could transfer them to their respective indenture trustees via registered mail for processing. After presenting my securities to the receptionist, she informed me that the securities that I presented did not qualify for for a medallion signature guarantee. I cordially responded and told her that my securities did qualify for a medallion signature guarantee because of the Trust Indenture Act of 1939. I politely explained that the Trust Indenture Act of 1939 gave me the right as a security holder to send my securities to their respective indenture trustees where they could be processed for payment. But even after disclosing this information to her, she denied my claim. In spite of the disagreement, I was still kindly admitted into the queue to wait for assistance from the next available representative. After several minutes of waiting to be assisted, I was called up by the receptionist who had just finished having a conversation with another employee. The receptionist informed me that her manager informed her that my documents did not qualify for a medallion signature guarantee. I rebutted, and reiterated that by law the documents that I possessed and presented were lawfully transferable indenture securities. She once again disputed my claim. So again, I attempted to explain the principles of the Trust Indenture Act. Once more, she restated that her manager informed her that my documents would not be accepted which was somewhat perplexing because her manager refused reception of my securities without even reviewing them. I then courteously asked her for a business card and proceeded to leave the establishment without having my securities stamped. I found that interaction disappointing and unacceptable. What makes matters worst and even more unsettling is that this particular branch is not the only branch of Navy Federal that has refused to provide me the service of a medallion signature guarantee so that I can lawfully transfer my securities to their respective indenture trustees. The Navy Federal branch in XXXX, GA as well as the Navy federal Branch in XXXX, GA have all operated as obstructing institutions. Even though I was warmly received and hosted with respect at each branch, I unfortunately still had to interact with employees who exhibited incompetence in regards to federal law that was created so that myself and other security holders could use the bank for its primary purpose-the holding and transferring of securities, notes, bonds, and stocks. I should not be denied a service that is lawfully and legally due to me because of Navy Federals lapse in decorum resulting from its employees apparent unfamiliarity with law. Based upon my recent experiences, Navy Federal seems to be unjustifiably establishing itself as an impediment to the Trust Indenture Act of 1939. Specifically Section 316 ( b ) thereof which states, Notwithstanding any other provision of the indenture to be qualified, the right of any holder of any indenture security to receive payment of the principal of and interest on such indenture security, on or after the respective due dates expressed in such indenture security, or to institute suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such holder, except as to a postponement of an interest payment consented to as provided in paragraph ( 2 ) of subsection ( a ). In order for me to properly assign my securities to the rightful indenture trustee and receive the payment of principal and interest on my indenture securities, I must first have my indenture securities stamped with a medallion signature guarantee which verifies my signature on my securities and authorizes the transfer thereof. Without this stamp, I am not allowed to properly transfer and remit my indenture securities to the corresponding indenture trustees. This is an issue that needs to be immediately addressed and abolished so that I can transfer securities without hindrance and repeated rejection.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation