Consumer complaint received 2018-12-10
Company: NAVY FEDERAL CREDIT UNION
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I was XXXX weeks late on my Navy Federal Credit Union credit card payment XXXX months ago in XX/XX/XXXX, and they turned off my card and payment was declined at the grocery store, even though I was under the credit limit. This has never been done in nearly XXXX years with their credit card, even after over XXXX days late payment multiple times while living overseas doing a Masters degree on a strict budget with income checks often mailing and depositing late. When I then logged on to the Navy Federal website on XX/XX/XXXX, I was immediately given an other than normal screen, not the regular accounts overview page it has been for all these years, but a never before seen special credit card payment screen. Which had a prefilled amount of double payment ~ {$1000.00}, that I did not see an option to change the amount of. So I was manipulated to pay double when I wanted to just pay the late payment so I could buy the groceries. Then, the following month, last month I could no longer afford to pay my Navy Federal credit card bill XX/XX/XXXX, due to ongoing health and employment problems, and now waiting for a surprise court/legal document to process so I could pay that potential {$500.00} bill first, from my {$2600.00} savings remaining. I figured I would delay payment another month, or as many as required, before paying, or pay partial payment, along with any late fee like they have charged in the past. Come XX/XX/XXXX I checked my bank account online, no abnormal late/double payment screen presented this time, and I find that on XX/XX/XXXX Navy Federal on their own without my explicit transfer authorization, went and took the {$50.00} remaining from my Navy Federal savings account, and {$470.00} from my checking account, and paid the credit card themselves, and without notifying me, and after charging a " late fee ''. Interestingly as well, the over limit balance was the highest it has ever been at {$27000.00}, yet the minimum payment which they took, was not the highest ever, being midrange {$510.00}, so I don't know how they are calculating all my previous minimum payments for years that have been higher, but for lower total credit card balance. Anyhow, after messaging them, they said it is part of their credit card " security '' policy to take funds if you don't pay. I have never heard of this in nearly XXXX years, and do not agree to it, regardless of where it might be hidden in the " fine print ''. It has never been done before when a payment was late. This is theft. They can not arbitrarily access and take whatever funds they wish from the savings peoples lives depend on. I have requested multiple times for them to return the funds, and that I will pay that credit card when and however I can later as I have always done. They do not have a right to take and disrupt peoples finances, and as in my case, potentially get them sent to jail for not being able to pay court fees first. Especially disrupting peoples finances, deviating from norms, or taking peoples money when they are in a bind and need it most. Not to mention the fact that if they can just take your money if it's late, then why are they ever allowed to charge a late payment fee, or why even allow automatic scheduled minimum monthly payments, if they are going to take your money when they want to anyway? If you are charged a late payment fee, then that is your punishment, not taking that fee and then take the due amount money anyway. It is intentionally deceptive and dishonest practice. They do not even notify you that they will be, or did take the money, so you can plan accordingly. Who decided which accounts to take the money from, and why? Who decided how much to take from each account, and why? The issues involved in this can be expounded to no end.

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