Consumer complaint received 2017-10-26
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Debt collection
Sub-product: Other debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
Complaint # XXXX was not addressed at all in Navy Federal 's XX/XX/XXXX response. What NFCU did was blocked out the bottom half of my complaint and just address the top introduction. XXXX is CONNIVING and SLICK. They need to be severely monitored on a monthly basis. Here I am today still trying to get some help and relief from this credit union giant. Navy Federal is charging me an astronomical amount of interest on a debt Ive been trying to rectify for 9 years. I defaulted on a loan in XX/XX/XXXX and it was sent to collections. In XX/XX/XXXX. I was able to get on a payment plan to pay a little over 14K and have been paying faithfully to this day. In XX/XX/XXXX, I called and requested my balance and pay off information and was sent aXXXX balance. I then sent a letter inquiring how they came up with this figure and was told in their reply that in my court drawn agreement it states the balance of XXXX shall be paid in full with interest at the contract rate. Therefore cumulating an unknown daily, monthly and or yearly interest rate of 12 %. The discrepancy here is that the court agreement does not state per annum or any other monthly or daily term, so this is falsely applying inaccurate interest to my debt. 

Meanwhile in a later response to my CFPB compliant they state that Navy Federal charges daily interest on my unpaid loan balance. The discrepancy here is the agreement does not state that either. This is also falsely applying inaccurate interest and a discrepancy, therefore price gouging my debt. If the court agreement is supposed to be 12 % per annum then why am I being charged daily interest as well ( Please see CFPB complaint response and court agreement ) In the letter dated XX/XX/XXXX, the attorney states, your monthly payment are still far less than the original payments you agreed to in the promissory note, the large amount of interest on your account is due to a combination of your relatively small monthly payments and the long period of time during which you were not making payments. 

Moreover, NFCU and their attorney has never sent any statements, receipts or invoices of payments made, which should also indicate the interest that was accruing. There is a variation of ways that theyre charging interest to my account, which is erroneously charging me interest all types of ways. None of above underlined are in the court agreement. 

If this is a charged off account why does NFCU still have this 9 years old defaulted account on their books and in their systems and dont send out statements or invoices. NFCU and their attorney can see the date and amount of every payment Ive ever sent in and yet they dont send statements to me to let me know my payment was received. If I had been receiving invoices I would have known long ago I was bring charged extremely high and erroneous interest and I still dont know how theyre calculating it. 

The account balance that was sent to collections was {$14000.00}. I have made {$14000.00} XXXX dollars in payments since that written agreement. In XX/XX/XXXX, I called the firm to request an account balance. They sent me a whopping balance of {$19000.00}. This balance can not be right. In the agreement it states, the balance of {$14000.00} shall be paid in full with interest at the contract rate. The contract rate is 12 % and since the contract doesnt state contract rate per annum it shouldnt be applied, thats not fair. 
The collections balance of {$14000.00} times 12 % is not the now XXXX. The written agreement does not state any terms or expiration. Im seeking a full adjustment in the amount {$1600.00} My formula XXXX x 12 % = XXXX + XXXX = XXXX - XXXX = XXXX Im asking the following questions. They havent provided me with any answers to my questions, which are listed below : How much can we come up with to close this account out with consideration of XXXX already paid? 

What would my monthly payments need to be to eliminate the daily, monthly or yearly interest? 

Can you send me the Navy Federal terms in which it states or underline in the court agreement where my debt is accruing daily interest on the grounds of me making relatively small monthly payments and the long period of time in which I was not making payments. Please send me this information. 

Can you mark in the court agreement where its states that since my payments are far less than the original payments I agreed to in the promissory note that all my payments are interest payments? Please send supporting documentation. 

Have I ever been late or missed a payment? If so, please send supporting documentation. 

Can you send me any supporting documentation in which it states that the original contract is still in effect alongside the court drawn agreement until paid? The latter drawn agreement supersedes the original, correct? 

How am I to interpret the statement the balance of {$14000.00} shall be paid in full with interest at the contract rate to mean daily, yearly and or monthly interest? The court agreement does not state interest per annum, thats a discrepancy nor does it indicate at the interest rate terms of the original agreement, thats a discrepancy as well. Its like you know and Im supposed to figure out thats what it meant. XXXX x 12 % is only an additional XXXX. 

How am I to interpret the statement Defendant agrees and Plaintiff accepts payments of {$100.00} per monthfor 12 months thereafter payments shall increase by {$25.00} per year to mean if my payments arent at least equal to my original contract payments then all my payments are interest? ( all 14k plus is interest ). This is a discrepancy. Its hidden or made up as we go a long and I was never made aware of this until XX/XX/XXXX. This is wrongful doing! 

Do you see how unfair and one sided this is in my sight? 
This is why Im writing to just put yourself in my shoes for a moment. 
What would you do if you were me? 
How would you feel? 
How would you handle this if you were me? 
What would you recommend that I do? 
If this were you how would you want to be handled or treated? 
All I have ever did was try and pay what I owe and have done that and thats not enough for you. Why? 

The resolution I am seeking is relief from this interest and to close this collections account permanently, at best offer and resolution I still owe a balance of {$1600.00}. Thank you for your consideration. 

XXXX XXXX

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