Consumer complaint received 2022-12-22
Company: NAVY FEDERAL CREDIT UNION
State: TN
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Billing problem

Complaint:
On XX/XX/2021 consumer XXXX XXXX, delivered to Navy Federal a signature on the promissory note. According to Security Exchange Act and the FTC 16 CFR this contract was a PURCHASE MONEY LOAN ( define below 433.1 ) On the Contract which is attached to the complaint Navy Federal has said they gave the consumer XXXX XXXX cash loan. According to 12 CFR 1026.4 A finance charge is the cost of consumer credit, it does not include any charge of a type payable in a comparable cash transaction, in which I paid a {$11000.00} down payment when I was not suppose to. 
433.1 Definitions Purchase money loan. A cash advance which is RECEIVED by a consumer in return for a Finance Charge within the meaning of the Truth in Lending Act and Regulation Z, which is applied, in whole or substantial part, to a purchase of goods or services from a seller who ( XXXX ) refers consumers to the creditor or ( XXXX ) is affiliated with the creditor by common control, contract, or business arrangement. Navy Federal NEVER gave XXXX XXXX any cash loan. According 15 USC 1666 ( b ) ( I ) ( 2 ) Make appropriate corrections in the account of the obligor, including the crediting of any finance charge on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditors explanation of of any change in the amount indicated by the obligor under paragraph ( 2 ) and, if any such change in the amount indicated by the obligor so requests, copies of documentary evidence of the obligors indebtness; or ( ii ) send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and upon request of the obligor,, provide copies of documentary evidence of the obligors indebtness. XXXX XXXX has asked Navy Federal to prove their claims by sending documentary evidence thats true to consumer/obligors indebtness if any. Navy Federal sent documents such as a copy of a check and a monthly statement, that the consumer did not request for. According to Title 45 CFR 501.6 Documentary evidence.

Documentary evidence may consist of books, records, correspondence or other documents pertinent to any hearing, examination, or investigation within the jurisdiction of the Commission. When consumer requested that Navy Federal provide documentary evidence by opening the books of this account from the inception or do not contact consumer unless providing proof, Navy Federal took upon themselves to retialiate and put a NOTICE on my account ( there is an attachment ) deceiving me as if the debt was settled on their end. Also sending contradicting statement and saying they are attempting to collect the debt but on the other end of their mouth saying my account is only for information purpose only and no attempt to collect a debt. Both attachments are attached. Also how could they claim to be a non-profit when they are threatening me saying this is an attempt to collect a debt but on the other hand this is not an attempt to collect a debt, this is an example of abusive, deceptive, practices. I filed a 1099A which is attached because Navy Federal was reluctant to respond according to federal laws and united states codes. Which the IRS department accepted and Navy Federal XXXX should have been updated but they kept trying to collect a debt that has been satisfied by sending debt statement through the mail requesting that I make payment with federal reserve notes, checks, debit cards, etc which is considered mail fraud according to US Justice 18 U.S.C. SECTION 1341ELEMENTS OF MAIL FRAUD, also violations of 16 CFR CH 1 SECTION 444.3 and 16 CFR 433.2 under the federal trade commission guidelines. 



A promissory note is a security which the bank buys from the consumer so how did it turn into certificate of indebtness. Navy Federal has put deceptive, abusive language in the contract about the collateral being used for the the security of the debt aka repossession when the promissory note with my signature was the security, there is no signature from the bank, therefore the security instrument was signed sealed and delivered to Navy Federal the e-sign. According to the security Exchange Act a promissory note is a security.

According to Federal Courts cases, it is well established that a bank has not power to lend its credit to another by becoming surety, indoser, or guarantor for him Farmers and Miners Bank v. Bluefield Natl Bank all contracts entered into by its officers are ultra vires Howard & Foster Co. v Citizens Natl Bank of Union The retail installment agreement did not mention or have the necessary provision 433.2 Preservation of Consumers Claims and Defenses, Unfair or Deceptive Acts or Practices. In connection with any sale or lease of goods or services to consumers, in or affecting commerce as commerce is defined in the Federal Trade Commission Act, it is an unfair or deceptive act or practice within the meaning of Section 5 of that Act for a seller, directly or indirectly, to : ( a ) Take or receive a consumer credit contract which fails to contain the following provision in at least XXXX point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS 4 5 HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER On XX/XX/XXXX I paid in electronic cash transfer {$2200.00} for the months of XXXX and XXXX before paying I said I want this payment to XXXX and XXXX payment, Im not sure what Navy Federal did with the transfer They have listed on my account its paid but is still saying I owe for XXXX. However I really dont owe them and need them to prove my indebtness. 


GAAP PRINCIPLES OF DEBIT AND CREDIT Every month the statement that Navy Federal mail ( in attachment ) comes in a positive balance, how is such a thing. When something is owed it merely comes in a negative such as - {$300.00} exemplfying a debit but a statement that comes in {$300.00} exemplify a positive and always indicate liability on the issuer part in this case Navy Federal. In this example the statement the company sent, according to security and exchange commission act of 1934 the top of the statement is considered the Bond and the bottom part is considered the dividend proceeds that the bank never gives to the consumer. Inadvertently I gave Navy Federal permission to keep the proceeds because I did not understand the contract was unilateral and not mutual agreement. 

LATE CHARGES According to 15 USC 1681 ( 2 ) ( 3 ) ( A ) RULES OF CONSTRUCTION, Exclusions : The term consumer report does not include ( i ) report containing information solely as to transactions or experiences between the consumer and the person making the report. Late charges are illegal when it comes to illegitmate consideration and reporting the experience on the consumer credit reports. The bank did not give me a loan. I gave them a security instrument evidenced by my e-signature. They used my signature as cash value. They have also reported erroneous to my credit report and I choose to opt-out of reporting from Navy Federal on my credit report, according to 15 USC 6508 and according to 15 usc 1602 I am a federal protected consumer.

Conclusion So banks borrow from the public. So that much weve established. What about lending? Surely theyre lending money. Umm. No, they dont. Banks dont lend money. Banks again, at law, its very clear. Theyre in the business of purchasing securities. Usually what happens is : Conumer says I want a loan. Banker : Fine, heres the loan contract. Heres the offer letter. And consumer signs. At law, its very clear, the consumer have issued a security. Namely a promissory note. And the bank is going to purchase that. Thats whats happening. What the bank is doing is very different from what it presents to the public that its doing. How does this fit together? The bank will say youll find it in your account with us. That would be technically correct. If they say, well transfer it to your account, thats wrong because no money is transferred, at all, from anywhere inside the bank or outside the bank. Now it also owes the consumer money [ for the promissory note ] and its record of the money it owes me and what I thought I was to get as money came in the form of loan and was charged interest which is security fraud. And thats all it is. That is how the bank created the money supply. The money supply consists to XXXX percent of bank deposits and these are created out of nothing by banks when they lend. Because they invent fictitious customer deposits. They simply restated, slightly incorrectly in accounting terms what is an accounts payable liability arising from the loan contract having purchased my promissory note as a customer deposit. But nobody has deposited any money. I wonder how the FCA [ Financial Conduct Authority ] deals with this because in the financial sector youre not supposed to mislead your customers. The 'private ' side of a bank 's ledger and the 'public-facing ' side. My account is actually an " Accounts Payable '' on the 'private ' side of the bank, on their bookkeeping ledger. I created something of value by completing the 'loan application ', which is really an IOU to pay dollars. Then then Navy Federal exchanged this for a BANK IOU/accounts payable entry that then use as money but was no more than an exchange note for signature, they used my signature as cash value and then fraudently put it on their books as a loan given or cash given according to the contract. However, I never received cash or return of my promissory note stamped or debt satisfied.. Therefore a 1099A and 1099B was filed and accepted by the Treasury deptment and will be updated as discharged on my taxes when taxes are to be filed.

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