Consumer complaint received 2023-07-13
Company: NAVY FEDERAL CREDIT UNION
State: SC
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Improper use of your report
Sub-issue: Reporting company used your report improperly

Complaint:
I received an email from XXXX  who reports XXXX and I see that Navy Federal Credit Union has reported a charge off to my public report. This is a violation of the privacy act of 1974. Navy Federal has shared nonpublic personal information with a third party. That is a {$1000.00} violation fee. Navy Federal has also reported a " Charge off '' to XXXX. A charge off is a certificate of indebtedness and is not to be reported to a third party. This charge is to be removed from the public immediately. That is also a {$1000.00} violation. It is illegal to report nonpublic personal information to a third party unless a 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. In which Navy Federal has not given that option to the consumer. I have a right to opt out of that reporting and Navy Federal has never given me the option to opt of transaction reporting pursuant to 16 CFR 313.7. Navy Federal was given tender of payment to which they did not accept. Pursuant to UCC 3-603 ( b ) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. Navy Federal has reported to this third party company five ( 5 ) times since XXXX and that is a {$1000.00} violation for each time Navy Federal has reported. Since the inception of the account which is defined under 12 CFR 1002.2 defined as extension of credit and the word account refers only to open-end credit. An open-end account is a revolving account. Open-end credit means consumer credit extended by a creditor under a plan in which : ( i ) The creditor reasonably contemplates repeated transactions ; ( ii ) The creditor may impose a finance charge from time to time on an outstanding unpaid balance; and ( iii ) The amount of credit that may be extended to the consumer during the term of the plan ( up to any limit set by the creditor ) is generally made available to the extent that any outstanding balance is repaid.

Navy Federal has been requiring Federal Reserve notes as payment, when in fact the application with the financial information ( social security number ) attached served as an asset, which satisfied the monthly obligation pursuant to 12 CFR 360.6 ( 2 ) as well as self-liquidating paper pursuant to 17 CFR 260.11b-6. Furthermore I have noticed that Navy Federal has been redeeming the remittance coupons/ instrument as a non-cash item ( 12 CFR 210.2 ( k ) / ( 12 CFR 229.2 ( u ) ( 4 ). Pursuant to the Code of Federal Regulations, I demand all credits be returned on all remittances/coupons at the inception of the accounts. Furthermore, the open-end consumer credit card ( 15 U.S.C. 1602 ( m ) ) that is on file with account no # XXXX and payments made in good faith ( 15 U.S.C. 1692 ( h ) ) by the applicable law ( 15 U.S.C. 1602 ( j ) ) ( 14 CFR 374.3 ) while choosing to make unauthorized electronic fund transfers ( 12 CFR 1005.11 ( 1 ) ( i ) ). You are not supposed to report any late payments ( 15 U.S.C. 1666 ( b ) ) for any purpose and you have caused me damages by reporting late payments to third party credit bureaus. You did not provide me any recession documentation ( 15 U.S.C. 1635 ) & ( 12 CFR 1026.23 ) in accordance with regulations of the Bureau. The appropriate forms for the obligor to exercise his right to rescind any transaction was never disclosed to me. This is my recession, and you are to return to me, the obligor, all money and property given as earnest money ( 12 CFR 1026.23 ). Also, on XX/XX/XXXX Navy Federal received a negotiable instrument and did not return it. It was sent to XXXX XXXX XXXX on XX/XX/XXXX. This is a breach of fiduciary duty which is also a {$1000.00} violation. By furnishing my nonpublic personal information to a third party I demand that Navy Federal remove all late payments and Charge offs. XXXX is not a federal agency and Navy Federal has reported my nonpublic personal information ( social security number ) to a nonaffiliate pursuant to 5 USC 522a. Navy Federal has been given a billing error dispute and has refused to acknowledge them. 15 U.S. Code 1666d, Whenever a credit balance in excess of {$1.00} is created in connection with a consumer credit transaction through ( 1 ) transmittal of funds to a creditor in excess of the total balance due on an account, ( 2 ) rebates of unearned finance charges or insurance premiums, or ( 3 ) amounts otherwise owed to or held for the benefit of an obligor, the creditor shall ( A ) credit the amount of the credit balance to the consumers account ; ( B ) refund any part of the amount of the remaining credit balance, upon request of the consumer ; and ( C ) make a good faith effort to refund to the consumer by cash, check, or money order any part of the amount of the credit balance remaining in the account for more than six months, except that no further action is required in any case in which the consumers current location is not known by the creditor and can not be traced through the consumers last known address or telephone number.

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