Consumer complaint received 2022-02-08
Company: NAVY FEDERAL CREDIT UNION
State: OK
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem related to refinancing

Complaint:
To whom it may concern, Re : XXXX XXXX XXXX XXXX Auto loan financed with Navy Federal Credit Union This is a formal complaint against Navy Federal Credit Unions Collateral Control dept. My husband and I had refinanced his truck through Navy Federal Credit Union XX/XX/XXXX from XXXX XXXX  at a much lower interest rate. At this time, we agreed to the terms and conditions of presenting a new title to Navy Federal with them listed as the new lien holder. In order to complete this we had to pay off the present loan with XXXXXXXX XXXX  and they would send us a lien release to take to the local agency to apply for the new title. I waited over a month for this to come in the mail and it never showed up. I called XXXX XXXX to follow up on the status of this. Their title department advised me they sent this to the corporate branch for Navy federal in Virginia. I was sent a letter and received a phone call from Navy Federal to bring a copy of our title up to the branch to have them scan into their system. At this time, I took off of work to go into the bank and have them scan the title. The title we had still name XXXX XXXX  as the lien holder which I explained to the lady at the XXXX XXXX OK branch, what was going on. She said thats okay if they have the lien, they are able to file for the new title on our behalf for a small fee. I okayed them to charge me the fee so that I wouldnt have to take more time off of work to get this completed. Another month went by I receive another letter from Navy saying they needed the new title. I took off of work again and drove to the bank in XXXX XXXX and called the customer service number to speak with someone in the title dept at Navy Federal who said she was noting the account really well of all our efforts and could see my prior calls that we are trying to resolve this matter and someone would call me back. I never received a returned call. When I got the Navy Federal, they lady said they didnt have a copy of the title. I explained once again what was going on, she apologized and asked that I give her the title to scan into the system again. She assured me this would be taken care of and she could see in the file they did have the lien release from XXXXXXXX XXXX Almost 2 more months went by I heard nothing until I receive an email and call from Navy Federal ( see email attached ) This email is advising me our loan interest rate will change if we do not take care of the issue. At this time, I called Navy federal again spoke with someone in title dept who said it may be best that I go up to branch to resolve this matter. I took off of work again, drove to XXXX XXXX Ok ( 40 mins away ) sat down with a branch representative who advised the lien release they have on file from XXXX XXXX was never signed therefore it was not valid. I asked her to call XXXX XXXX with me in the branch, she did ; I spoke with the XXXX XXXX title rep gave permission for them to speak with Navy Federal. At this time the Navy federal rep explained to them the copy they sent was not signed they need a new copy mailed out. She told them the send the copy to XXXX XXXX XXXX XXXX, XXXX XXXX, PA XXXX Attn : XXXX. She assured me they were going to send a new signed lien release out right away. Navy Federal may ask me to authorize them request the new title once they receive the new lien release. I left and went back to work ( see attached letter ). Yesterday XX/XX/XXXX I receive a letter from the collateral Control dept at Navy Federal stating my loan no longer qualifies for a collateral loan and has been converted to an unsecured loan with an increased interest rate of over 11 % more than our current auto loan at 3.99 %. This new rate increased my payment by more than {$100.00} which at this point I have incurred financial damages and want someone held accountable. This is unacceptable business practice. I immediately called Navy Federal and requested an escalation to a manager to fix this. They advised me they would have to call me back within 24 hours and that they have put in a request to hold the account, but I may still be charged, and they would not refund me any excess monies. This request can take 3-5 days to process. At this time, they were made aware my next move would be to put in a formal complaint to the CFPB. The next business day XX/XX/XXXX I receive a voicemail from Navy Federal, but my phone does not ring. They leave a message dont say their name or reason for the call. They provided me a generic callback number of XXXX. I call right away and get the customer service rep on the phone verify who I am, she says she sees who called me and why, but would not give me her direct number or name and put me on hold to see if she could get her on the line. After two attempts she comes back saying the lady is not available and put in a escalation request to have her call me right back. I should get a call back in about 30 minutes to 1 hour. This was at XXXX the time is not XXXX on XX/XX/XXXX I still have not received a returned phone call. I called XXXXXXXX XXXX request to speak with a manager in their titling dept and explained the reason for my call. Was transferred XXXX who advised me they sent a second copy of the lien release ( signed ) on XX/XX/XXXX to Navy Federal the address they requested to the Attention of XXXX. In XXXX XXXX XXXX XXXX advised me she could send another copy overnight certified with tracking needing a signature if I could tell her a physical address for Navy Federal and a persons name to make it attention to. This information I do not have. I have requested XXXX XXXX send the copy to my address, however Im not sure they will do that. I advised them I would take the release up to Navy Federal Branch in XXXX XXXX myself and handle this. I would appreciate your prompt resolution of this matter.

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