Consumer complaint received 2023-11-21
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with the interest rate

Complaint:
I have used Navy Federal Credit Union ( NFCU ) on numerous occasions over the years to finance purchases. I have always had a very positive experience. In XXXX, I purchased a new vehicle, and NFCU was the lender he chose to finance the purchase. I continue to make all of the payments as agreed. About two months ago, NFCU reached out via mail to ask me to sign another original Promissory Note, Security Agreement, and Disclosure. Issue The issue on the electronic Promissory Note is that he was promised a rate of 4.79 % at application, and the electronic Promissory Note I signed incorrectly reflected the rate of 5.04 %. When I realized this error, I brought the mistake to NFCU 's attention, and the NFCU employee immediately corrected my online loan account. Then, NFCU sent out another original Promissory Note for me to sign. The main issue here is that I am being forced to sign two live Promissory Notes without either one being labelled as a substitute or a corrected agreement and without any documentation from NFCU that this additional Promissory Note is a substitute for the one I originally, electronically signed. 
Contact : I initiated at least two different calls to NFCU to try and straighten out why they wanted me to sign another original Promissory Note and Security Agreement versus a " Corrected or Substitute Promissory Note Agreement '' to prevent two live Promissory Notes ; I attached page XXXX of the electronically signed Promissory Note. I went to the XXXX XXXX XXXX XXXX in XXXX, XXXX on XX/XX/XXXX to explain that I only wanted it in writing that this new Promissory Note was a substitute for the original electronically signed Promissory Note. The Customer Service branch employee stated that NFCU could not provide that statement -- indicating that the new Promissory Note was being substituted for the original electronic Promissory Note. 
Threat : Furthermore, the Branch Customer Service person threatened that if I did not sign the additional Promissory Note within 90 days of the original Note date ( XX/XX/XXXX  ) NFCU would increase the loan 's rate to 18.99 % -- I am assuming that NFCU would convert the loan to an unsecured loan, which the loan is not because NFCU has the original, electronically signed Promissory Note I signed the day he picked up his check to purchase the vehicle. Please Assist This mistake was not my mistake, and all I am trying to do is correct the error NFCU made without running the risk of two live Promissory Notes floating around NFCU 's vault or at the very least something in writing from NFCU that the second written Promissory Note will be substituted for the original electronic version. Additionally, this letter should indicate that upon receipt of the substitute Promissory Note that the original, electronically signed Promissory Note will be returned to my possession marked " VOID '' to avoid future issues.

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