Consumer complaint received 2023-12-22
Company: NAVY FEDERAL CREDIT UNION
State: NJ
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I have sent in several registered securities to Navy Federal Credit Union dated XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX which was all confirmed received by thee UNITED STATES POSTAL SERVICES with instruction letter instructing the Chief Financial Officer XXXX XXXX to apply the principal positive credit balance to the principal 's Credit Card Account # XXXX for setoff. Those requests were dishonored/ignored and Navy Federal kept the securities. Navy Federal Credit Union then terminated my account, discharged said account and is making false, misleading, deceptive and defamation of character report to the consumer reporting agencies about me. This is a breach of Fiduciary Duty, Billing Error and Security Fraud. 

Pursuant to the Securities Act of 1933 SEC. 2. 77b ( a ) DEFINITIONS.When used in this title, unless the context otherwise requires ( 1 ) The term security means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of de- posit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities ( including any interest therein or based on the value thereof ), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a security, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing. 

Pursuant to Navy Federal 2022 Annual Report, they transfer the receivable assets from loans receivable through a securitization into mortgage-backed securities that are then sold to third-party investors. Navy Federal is profiting from my security, but denying me access to my credit account. This is Security Fraud. 

Note XXXX : Loan Sales and Continuing Involvement in Assets Transferred : In the normal course of business, Navy Federal originates and transfers qualifying residential mortgage loans in securitization or sales transactions in which it has continuing involvement. Loans are sold to XXXX XXXXXXXX XXXX XXXX and XXXX XXXX XXXX XXXX  XXXX, collectively the XXXX XXXX XXXX  ( XXXX  ), and XXXX XXXX XXXX XXXX ( XXXX ). The XXXX and XXXX generally securitize loans into mortgage-backed securities that are sold to third-party investors in the secondary market or retained by Navy Federal for investment purposes. Navy Federal may also sell loans that were previously retained for investment purposes to private third-party investors. 

Navy Federal sold/securitized {$6.00} XXXX and {$10.00} XXXX of XXXX XXXX loans during the years ended XX/XX/XXXX and XXXX, respectively. The following table provides a summary of the cash flows exchanged between Navy Federal and transferees on all loans transferred during the years ended XX/XX/XXXX. 

Furthermore, Pursuant to the Fair Credit Reporting Act " FCRA '' and the Privacy Act of 1974, A financial institution may not disclose any of their consumers non-public information to a third-party non-affiliate, unless they have provided clear and conspicuous disclosure to said consumer and an opportunity for that consumer to exercise his/her right to opt out of their information being shared. " Navy Federal did not provide me with this option or said notice '', but shared my information without full disclosure or my consent. This is a violation of the FCRA and Privacy Act of 1974 of the Consumer 's right to Privacy.

15 U.S. Code 6802 - Obligations with respect to disclosures of personal information : ( a ) Notice requirements Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 6803 of this title.

( b ) Opt out ( 1 ) In general A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; ( B ) the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) the consumer is given an explanation of how the consumer can exercise that nondisclosure option. 

16 CFR 313.7 - Form of opt out notice to consumers ; opt out methods.

( e ) Time to comply with opt out. You must comply with a consumer 's opt out direction as soon as reasonably practicable after you receive it.

( f ) Continuing right to opt out. A consumer may exercise the right to opt out at any time.

( g ) Duration of consumer 's opt out direction.

( 1 ) A consumer 's direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically.

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