Consumer complaint received 2020-10-27
Company: NAVY FEDERAL CREDIT UNION
State: PA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
On thursday XX/XX/XXXX i deposited a check for XXXX and on friday XX/XX/XXXX i deposited XXXX checks for XXXX, XXXX, and XXXX. All three checks were placed on XXXX business day holds as normal and XXXX was made immediately available. Saturday morning my account went into the negatives as XXXX federal took the XXXX back and extended the holds on the checks to XXXX business days ending on XX/XX/XXXX. I called XXXX federal and escalated the call to a supervisor level. The supervisor removed the hold on some checks to bring my balance back to XXXX in the positive. I thought this resolved me issues and agreed that holding the rest of the funds till the XXXX was ok. Then on tues XX/XX/XXXX the automated banking system reapplied those removed holds taking all the money from my checking and savings and overdrawing my account to negative XXXX draining everything i had. I called navy federal back who advised me i needed to talk to the security dept. I did. Security dept told me it was because of the holds plaved on the checks and that the checks did not come back nsf so the funds will be available XX/XX/XXXX and it would straighten out then. I asked for a security supervisor and told told that none are available to speak with so i would receive a callback from a supervisor within 24-48 hours leaving my account unusable in the meantime. I called back again and got an account specialist supervisor who advised me there is nothing navy federal can do about the money that was taken from either of my accounts, or the money that was released abd taken back until the checks came off of hold on the XXXX. Meanwhile i have written two checks out that will now bounce because of these finds being given to me and removed twice. No answers can be given to me from navy federal about what to do. I keep a daily balance of XXXX or more and have never had an nsf on my account. I deposited these checks from known clients as i always do with the expectation and notification of a 2 day hold like always. The supervisor advised me that the holds were weird and abnormal. I also currently have an additional XXXX in checks that need to be deposited and am afraid of putting them into my account given the circumstances and the current negative balance. All superviors, security dept, and associates have advised me this is not my fault but there is nothing i can do until the automated system lifts my holds. I run a construction company so this threatening to put me out of business as i can not purchase materials, pay for labor and transportation, or function with no funds. This is now causing additional problems beyond just holding checks when checks can easily be verified quicker then 2-5 days. Again none of these checks have come back nsf so giving me available funds and taking them back is not right.

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