Consumer complaint received 2022-05-05
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Unable to get your credit report or credit score
Sub-issue: Other problem getting your report or credit score

Complaint:
On XX/XX/XXXX, I called to apply for a credit increase for my credit card. The limit is {$20000.00}. I'd requested the max limit, a {$50000.00} credit limit. I didn't have a specific expectation, but I did expect Navy Federal to at least run my credit and assess everything fairly. The customer service representative to my information during the application process, such as income, address, and other information. After I gave this information, the representative provided a mandatory statement before submitting my credit application. The representative stated that my credit would be checked during this process, and there would be a hard inquiry on my credit report. Because this was mentioned, I was under the impression that a current credit/more up-to-date credit score would be used during the decision-making process.

After seeing no inquiry on my credit, I called back to make sure everything was ok. The representative said that the process would take 24-48 hours. I called back a day later to find out the status and was informed that I was declined an increase based on my credit report. I'd asked about my credit being checked and if I could dispute this, which I did. I was denied again. I asked them why a new credit report was never pulled for my credit. The representative said they used a credit report from XX/XX/XXXX, an old credit report. I'd explained that I was under the understanding that they would run a new credit report, which they never did. I spoke to a supervisor on XX/XX/XXXX to ask what the procedure was during the application process. She explained that a hard credit inquiry should happen, but they can use a soft inquiry or use an older credit report. I asked her how this provides an accurate and fair result during decision-making. I also asked why anything was mentioned about a soft inquiry during the statement made before the application was submitted and why the customer wasn't notified about this hidden process. She exclaimed that even though it's not mentioned to the customer, that Navy Federal Credit Union has the option to use an older credit report on file to make their decision, even if a new credit report will yield a better result/outcome. 
I explained that I'd been a customer for over 20 years. I've always made an effort to keep my accounts in good standing. None of my bank accounts were delinquent, all of my loans and credit cards were not late, and I have almost {$12000.00} of income that comes into my Navy Federal accounts between my employment and my XXXX  XXXX checks. I'd just paid my car off in total, and my credit score had gone up tremendously because of that. I felt that I was not being treated fairly as a customer. They should have used a new credit score/check when making their decision and not one that was almost seven days old. I am very disappointed not because I was declined but because I don't feel that this decision was based on anything accurate or fair. If they were going to use an old credit report, I should have been made aware of the statement given before my application was submitted. This is no longer about a credit increase but unfair practices. As soon as my XXXX account is ready, I will go back to them and remove Navy Federal Credit Union accounts. I feel insulted, and I've wasted my time and money trying to make sure I keep my bank accounts in good standing and re-coop any losses that I may have caused navy federal. They probably will never change the way they treat customers, but at least they won't ever get the chance to be mistreated again.

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