Consumer complaint received 2023-11-07
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
An incident occurred in XXXX with my carry-on stolen during a trip. I filed a complaint with the airline and made a police report five days after the airline failed to locate the bag. I did not notice any immediate charges on my accounts and waited the allotted time for the airline. 

I notified the Navy Federal Credit Union about the incident and learned of pending charges or transactions I had not made. I was told to wait for those items to post before closing the accounts, as the fraud department would monitor the account for further activities. When the items were posted, I was given a form to complete to start the insurance claim and was told it takes anywhere from 30-90 days to conduct the investigation. I submitted the required information promptly and called to get the status of a new card. The account number was supposed to be issued with my known balance before the fraudulent activity. I never received anything. 

I called NFCU in XX/XX/XXXX. I was told there was a delay with processing information and another 30 days were needed to complete everything as both accounts were closed and showed fraudulent activity. Well, my life flipped upside down while waiting as my father got ill in XX/XX/XXXX and Died on XX/XX/XXXX. After the significant loss, I did not think of NFCU until later in the year or close to XXXX, when my security clearance was updated and up for review. The renewal took longer than expected because of the theft in XXXX and items on the credit report. I contacted NFCU to get the insurance payment details, but the fraud stated the accounts were closed and satisfied., the 3rd party insurance sent the amounts to cover the activity, and new accounts should have reached out by now. NFCU started taking my money from my savings account without explanation, and I closed the accounts abruptly. 

I never heard back from anyone in XXXX, or XXXX, and I followed up in early XXXX, then everything shut down. The investigation of my clearance was resolved as the items were removed from my credit report and marked closed, not charged off. There was no balance being reported. In XXXX, the accounts resurfaced, and I got a letter in the mail for a settlement offer of 20 % ; I responded to the correspondence, citing- if I paid 20 % on the accounts of something that the insurance company paid, this would be double dipping and billing. I stated that because there was a low balance on these cards at the time of the theft, I would pay 10 % of their settlement offer. I never heard back from anyone. 

So, now we are in XXXX, and the Fraud team admits that they do not share information with the charge-off team, and the recovery team was unaware of the insurance claim. That the collections activity should have never happened, but because the two departments do not communicate or share data, there weren't any retrievable notes. 
I need these items deleted, as the NCUA stated the Supervisory Committee would work with them to update policies that could support the fraud and recovery department processes. I have to address this every five years for the clearance review process, which has been exhausting. i do not have any other issues with any other bank cards that were part of the theft except this one. Everyone has completed the filings and was able to disclose the payments from the account assured. I can not even get the name of the insurance company from NFCU, and at this point, I should not need it. 

This is stressful and impacts my ability to do the job I was called to do to protect American citizens. I need an explanation as to why the bank chose to pay for negative information to be reported monthly when they received payment from the insurance company in XXXX. I am confused. I have sent at least 20 family members to do business with NFCU, and they still have relationships because they don't travel for work and vacation like me. However, I did warn them of these practices.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief