Consumer complaint received 2023-07-09
Company: NAVY FEDERAL CREDIT UNION
State: FL
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Credit denial

Complaint:
Dear Navy Federal Credit Union I am writing to express my deep concern and dissatisfaction with the recent denial of my credit application On XX/XX/2023 with your company, Navy Federal Credit Union. It has come to my attention that the denial of my application, without providing specific reasons for the decision, not only violates my consumer rights but also goes against the provisions outlined in the Equal Credit Opportunity Act ( ECOA ) and the Consumer Credit Protection Act. 

First and foremost, I would like to emphasize that my credit application falls under the scope of a consumer credit transaction intended for personal, primarily family, and household purposes, as stipulated in 12 CFR 1002.2. Therefore, I have the right to be treated fairly and without discrimination during the application process. 

According to the ECOA, a creditor such as Navy Federal Credit Union, is prohibited from taking adverse action against an applicant on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. I am deeply concerned that my denial of credit appears to be in violation of this fundamental principle. 

Furthermore, the denial of my credit application without providing specific reasons is unacceptable. According to the ECOA, creditors are obligated to disclose the specific reasons for adverse actions taken against an applicant. It is not sufficient to merely state generic reasons such as length of time accounts have been established or amount owed on accounts is too high. As an applicant, I have the right to receive clear and detailed explanations regarding the factors contributing to the denial. 

Additionally, I must highlight that the mention of lack of recent installment loan information and too many inquiries in the last 12 months as reasons for denial appears to be discriminatory and unfair. These reasons do not accurately reflect my creditworthiness and are not supported by any objective evaluation of my financial situation. It is evident that my good faith exercise of my rights under the Consumer Credit Protection Act has been disregarded during the evaluation process. 

In light of the aforementioned concerns, I kindly request that Navy Federal Credit Union reconsiders its decision and reviews my credit application with utmost fairness, I encourage Navy Federal Credit Union to make a counteroffer by granting credit in a different amount or on other reasonable terms and adherence to consumer protection laws. I believe that the denial of my application has been unjust and has resulted in the violation of my consumer rights. I trust that your company will promptly address this matter, rectify the situation, and provide me with a just and equitable resolution. 

I look forward to receiving a written response regarding the reconsideration of my credit application within [ reasonable timeframe ]. Please provide me with specific details regarding the factors contributing to the denial, along with a comprehensive explanation of how my consumer rights were protected throughout the evaluation process. 

Thank you for your attention to this matter. I trust that Navy Federal Credit Union will conduct a thorough review and take appropriate action to rectify this situation promptly. 

Sincerely

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