Consumer complaint received 2018-05-07
Company: NAVY FEDERAL CREDIT UNION
State: GA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
Around XX/XX/XXXX, I made a large payment to my Navy Federal Credit Card - approximately {$6600.00} if I recall correctly. Shortly after the payment, I had a life emergency where a family member passed away. Given that the payment was locked up, I called Navy Federal and asked if they could process the payment. 

When I called, Navy Federal agreed to process my payment and told me my available credit was in the amount of the payment. I then booked my flight, flew to the funeral, and booked a car. A few days after I flew to the funeral, I checked my credit card balance online and I noticed my credit limit was raised from {$15000.00} to approximately {$21000.00}. Given my history with Navy Federal, I assumed this was a result of my recent large payments ( Totaling approximately 10000 ), excellent payment history, and my overall relationship with NFCU and my Credit Score. About a week later, the system changed my limit back to {$15000.00} - putting me approximately {$5000.00} over limit. 

I immediately called NFCU and asked them to fix the credit limit - they declined. They requested a copy of my credit report, and then determined I wasn't eligible due to my status of my NFCU Credit Card being over the limit. NFCU did confirm in XX/XX/XXXX that there was a bank error - the representative was supposed to inform me that the payment was a temporary limit increase and does not represent any permanent increase. Despite confirming a bank error in XX/XX/XXXX, NFCU did not attempt to rectify the issue. Instead, the balance being reported 140 % over the limit caused my credit score to drop significantly. 

I recall calling Navy Federal in XX/XX/XXXX and asking about the limit again. I was informed that the limit increase would be considered if I paid the balance below the limit of the card. Feeling like this may be an opportunity to resolve things, I did exactly that. Navy Federal then pulled another copy of my credit report and claimed that " due to recent history '' they would not approve the increase. 

I also recall another call in XX/XX/XXXX where NFCU told me that I was aware the credit line increase was temporary and that it was entirely my fault ( despite the being told that it was a bank error ). This was by an advanced team ; however, they didn't throughly research the calls - instead, they searched the calls after my initial interaction with NFCU. 

Between XX/XX/XXXX and today, I attempted to resolve this issue with Navy Federal - hundreds of times if I had to guess. I have expressed to NFCU that this bank error has caused me significant life impacts including : a higher interest rate on a car, numerous declines for credit requests, and overall serious financial hardships ( I had trouble paying the card numerous months due to job changes - 100 % because the minimum payment was significantly high ). In XX/XX/XXXX and XX/XX/XXXX, I spoke with XXXX at extension XXXX. XXXX informed me that she would investigate and find a resolution. 

During my conversations with XXXX, I expressed the following concerns : - The inaccurate reporting has caused me significant life consequences including higher interest rates - Inappropriate behavior of the bank employee ( breaching terms ) - Overall interest charged between XX/XX/XXXX and the first time we interacted. 
- Late payments due to the bank 's error. 
- Inappropriate high balance reporting compared to the credit line. 
- The number of calls I've had to make to NFCU to even reach someone willing to investigate it. 

I had asked XXXX for the following to make things fair and right : - Fixing my credit report to remove the late payments due to the bank error. 
- Updating the over-limit amount so that it doesn't show that I was historically over the limit on the card. 
- Updating the card limit to be permanently {$21000.00} given the bank error. 
- Refunding the interest charged between XX/XX/XXXX and the time we spoke ( because the card was in dispute the entire time ) - Refunding the late fees on the card. 

I had told XXXX that I'd be happy with the items above, and in exchange, I'd do the following : - Continue to maintain a great relationship with NFCU - Cease and Desist any further resolution seeking opportunities ( including filing a suit ) - Move on with life and be a more responsible credit card spender. 

XXXX called me in or around XX/XX/XXXX and informed me of the following : - After thorough investigation, it was again determined that NFCU was actually at fault for not informing me of a temporary line increase. 
- NFCU would report my high balance as {$15000.00} - Terms have changed within NFCU since the incident - NFCU no longer temporarily raises credit limits for payments that are made and processing. 

I had asked XXXX if they'd meet the other requests, she said they wouldn't. She mentioned she understands if I want to move forward with additional options as she didn't agree with the stance either. I also asked XXXX if she could send a copy of the terms and conditions of the credit card, navy federal policy, and bank policy for XX/XX/XXXX and Today - I was told this wasn't possible either. 

As far as I'm concerned, the bank seriously violated the terms and agreements of my card and I have legal grounds for resolving this in a court. To my understanding, if there is a breach of contract by the bank, the debt can be nullified. Rather than filing a case and moving forward for damages, I'd like to enlist in the help of the CFPB to see if Navy Federal can make things right by doing the following : - Raising my credit back limit to {$21000.00}. 
- Refunding all interest charged to the account between XX/XX/XXXX and the time this is approved. 
- Removing the late fees charged. 
- Removing the late payment reports to the bureaus. 

Throughout this ordeal, I want to remind NFCU that this behavior has caused me serious consequences including : - A higher interest rate on two separate car loans ( XXXX with NFCU to be exact ) - Numerous declined credit requests - all referring to the high balance and the 60 days late on my NFCU card. 
- Numerous declined limit increase requests with other banks ( same reason as above ) - A significantly higher insurance rate with XXXX ( because it's credit based in my state ) - Hundreds of hours on the phone wasted with NFCU seeking a resolution. 
- Emotional scarring to where I've worried about job offers being affected by my credit report. 
- Denial on numerous personal loan requests. 
- Denial on Consolidation Loan requests. 

If Navy Federal is able to follow through with the above requests, I'll consider this a fair alternative to having to seek additional options around the damages this breach of terms has caused. 

As a final note : There are hundreds of hours on record where I've spoken to NFCU. It's very easy for me to provide dates, times, and outcomes ; however, I wanted to keep this short and sweet so that we can move forward. Please reach out to me if you need copies of any calls, statements, or communications that I've recorded with NFCU.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief