Consumer complaint received 2020-05-15
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
One XX/XX/XXXX Navy Federal Credit Union used my joint deposit checking account applying the right of offset to collect money owed on an unpaid single user Visa credit card that was linked to a single user checking deposit account and a line of credit.. There is a Affidavit Judgement entered on XX/XX/XXXX for the Visa account. I was never served nor have I received any district court notices or levy/garnishment. As a direct result the of the suspension ( approx. XX/XX/XXXX ) from Credit Card usage, the linked checking deposit AND savings deposit accounts were completely restricted to deposits only. Meanwhile debiting the restricted checking account for the minimum payment due. Navy Federal knew there was no funds in the account. Also, I did not sign any Security Interest Agreement ( s ) EVER! 

I recently received a Paycheck Protection Program loan under the CARES ACT through XXXX  XXXX/SBA of {$8100.00} on XX/XX/XXXX via direct deposit. Navy Federal has NEVER attempted to apply the right offset my accounts since ( approx. XX/XX/XXXX ) until XX/XX/XXXX, one day after the stimulus direct deposit. With no warning at XXXX XXXX, {$6100.00} was removed from my joint deposit account and applied to the Visa and line of credit, leaving both with XXXX balances. Four hours prior, at XXXX XXXX  I used my Visa Hybrid  Joint Debit Deposit Card for fuel and a sandwich at a nearby convenient store. The PPP funds were still in the account. I spent most of the day trying to convince NFC representatives and well as management to reverse the illegal, fraudulent transactions. I repeatedly informed them about several violations they committed. I managed to capture most of my conversation with the employees using a call recorder app on my phone. They quick to inform me the call was being monitored. I responded in kind. All three representative were quite aware of the violations. Their silence was defining. I was place on hold for a very long time knowing they really didn't know what to do or say. I offered email documented proof several time of their violatons which ALL of them refused to accept. Finally I was given their Attorney 's contact information which I reluctantly accepted. 

I then decide to email ( with an end business day deadline ) NFCU 's executive management as well as their attorney my evidence and excerpts of Federal and State law outlining the numerous violations that were ( at this time ) knowing committed. Two hour later the Manager left a message on my phone. I explained to a new representative the same and received the exact same response. I mentioned that I would escalate matter if their prompt attention was not committed on resolving this problem. I have drafted a motion ( DC-CV-036 ) MOTION FOR RELEASE OF PROPERTY FROM LEVY/GARNISHMENT OR TO EXEMPT PROPERTY FROM EXECUTION to file Friday XXXX, XXXX. I will attempt one additional round of phone calls and emails before filing the motion electronically with the District Court. 

Any help and/or guidance would be greatly appreciated! 

Thank you for your time and attention ... 

COVID-19 FREE!!!

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