Consumer complaint received 2019-07-28
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
NAVY FEDERAL IS A CURRUPTION INSTITION THAT CALLED MY JOB NUMEROUS TIMES. THEY CUT OFF MY DEBIT AND CREDIT CARD NUMEROUS TIMES. THEY ARE IN VIOLATION OF THE SAILORS AND SOLDIERS ACT SAYING I OWE MONEY THAT I DONT. I HAD A SECUR3D CREDIT CARD AND THEY SAY I HAVE A BALANCE. HOW IS THIS EVEN POSSIBLE. THIS BANK IS XXXX AND HAS A DISTAIN FOR ALL XXXX PEOPLE. 

Falsely threatened legal action and wage garnishment : The credit union sent letters to members threatening to take legal action unless they made a payment. But in reality, it seldom took any such actions. The CFPB found that the credit unions message to consumers of pay or be sued was inaccurate about 97 percent of the time, even among consumers who did not make a payment in response to the letters. The credit unions representatives also called members with similar verbal threats of legal action. And the credit union threatened to garnish wages when it had no intention or authority to do so. 
Falsely threatened to contact commanding officers to pressure servicemembers to repay : The credit union sent letters to dozens of servicemembers threatening that the credit union would contact their commanding officers if they did not promptly make a payment. The credit unions representatives also communicated these threats by telephone. For members of the military, consumer credit problems can result in disciplinary proceedings or lead to revocation of a security clearance. The credit union was not authorized and did not intend to contact the servicemembers chains of command about the debts it was attempting to collect. 
Misrepresented credit consequences of falling behind on a loan : The credit union sent about XXXX letters to members misrepresenting the credit consequences of falling behind on a Navy Federal Credit Union loan. Many of the letters said that consumers would find it difficult, if not impossible to obtain additional credit because they were behind on their loan. But the credit union had no basis for that claim, as it did not review consumer credit files before sending the letters. The credit union also misrepresented its influence on a consumers credit rating, implying that it could raise or lower the rating or affect a consumers access to credit. As a furnisher, the credit union could supply information to the credit reporting companies but it could not determine a consumers credit score. 
Illegally froze members access to their accounts : The credit union froze electronic account access and disabled electronic services for about XXXX accounts after consumers became delinquent on a Navy Federal Credit Union credit product. This meant delinquency on a loan could shut down a consumers debit card, ATM, and online access to the consumers checking account. The only account actions consumers could take online would be to make payments on delinquent or overdrawn accounts.

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