Consumer complaint received 2017-07-30
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Getting a credit card
Sub-issue: Card opened as result of identity theft or fraud

Complaint:
XX/XX/XXXX I checked my credit report and noticed that a navy federal credit card was opened in my name back in XX/XX/XXXX and had a balance of XXXX . Before I even noticed about the account I had been receiving phone calls from random strangers who would n't identify themselves but knew all of my information including my address, social security number and banking information including security passwords. They used dead end numbers to contact me, telling me I owe them debts and if I did n't pay I would be taken to court which turned up to be fraudulent. The account had been being used time for time according to my report. When I called Navy federal about the account, I mentioned that I called my local police department to report identity theft along with freezing my credit reports, instead of helping me, they deflected my concerns and took it upon themselves of telling me that I should change account numbers and get a new credit card number. I mentioned to them that I never received a credit card at all and never got billing statements even though I have never gone paperless for any of their statements, which was confirmed by a customer service rep. This loan amount never appeared on my NFCU app until after the first phone call about the fraudulent credit card was made to the fraud dept. What is more crazy is I looked at the billing statement paper that was given to me, it also shows security flaws. These security flaws expose the credit card information associated with the account, and it also shows my personal access number which makes it seem like I am the owner. I noticed the card was named after my personal code word which I found to be a little crazy. I called four more times after that on the same day and when I attempted to find out how this credit card was opened, what address the credit card and billing statements were sent to, and if it had a pin number associated with it, with these obvious red flags of a fraudulent credit card account, I have been given the run around because if I were the owner, I would have known this information to begin with and would not have even called about the account in the first place. The last agent I spoke with, explained to me that I could shut down the account as they investigate this but they have not done an investigation, all they have done is after 15 days of not paying the monthly bill, the credit card account was put in default and sent to their collections department who has been doing deducting money from a joint savings account that 's between my spouse and I and using that to pay the credit card back without any formal consent. According to their credit card terms and agreement, the account will be in default after 60 days of non-payment, but as way for them to not take responsibility for their recklessness and security negligence, this fraudulent account was placed in default after 15 days, again violating their own terms and agreement contract. The only way I found this out, was by checking my NFCU app and saw that this money was transferred without any notification, thus breaking the protocol written in their credit card terms and agreement as it states that the authorized user is giving them permission to access and take money from all other accounts with NFCU to pay the delinquent account, but since my spouse and I were unaware of this fraudulent account until receiving my free annual credit report, we DID NOT give NFCU permission to access and take money from our accounts for this fraudulent account. The bank claims they have insurance to protect themselves from things like this, but they keep telling me I need to file a claim within thirty days from when it happened and it will be resolved. How can it be resolved if this fraudulent activity had been going on for over a year? How can I challenge this activity when I 'm challenging the whole entire account that is n't mine to begin with. The bank insurance should allow them to clear the fraudulent account out of my name and I can move on from this crazy experience. The bank claims I completed a phone application to get this card. if this is true where is my signature at? They also mentioned in there card terms and agreements disclosure the card is not valid in less my signature is on the back of this card and if this is true then the bank its self is going against its disclosure agreement. I have documentation to back up my claims and I will continue the battle to get rid of this fraudulent activity that NCFU has allowed even though they have been sued already.

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