Consumer complaint received 2021-09-07
Company: NAVY FEDERAL CREDIT UNION
State: TX
Product: Debt collection
Sub-product: Auto debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
What happened? 
On Janurary XXXX, 2021 I, XXXX XXXX XXXX engaged into a " consumer credit transaction '' with Navy Federal Credit Union in which a " Finance Charge '' was involved " Amount Financed '' ( {$19000.00} ) and " Total Sale Price '' ( {$25000.00} ). Pursuant to ( 15 USC 1605 ) -Determination of finance charge-Finance charge defined- Except as otherwise provided in this section, the amount of the finance charge in connection with any consumer credit transaction shall be determined as the sum of all charges, payable directly or indirectly by the person to whom the credit is extended, and imposed directly or indirectly by the creditor as an incident to the extension of credit. The finance charge does not include charges of a type payable in a comparable cash transaction. Navy Federal Credit Union also took individual action to demand a " Down payment '' in the amount of {$6700.00}. Pursuant to ( 15 USC 1662 ) -Advertising of down payments and installments- which states- No advertisement to aid, promote, or assist directly or indirectly any extension of consumer credit may state ( 1 ) that a specific periodic consumer credit amount or installment amount can be arranged, unless the creditor usually and customarily arranges credit payments or installments for that period and in that amount. ( 2 ) that a specified " down payment '' is required in connection with any extension of consumer credit, unless the creditor usually and customarily arranges down payments in that amount. Pursuant to ( 15 USC 1635 ( b ) ) -Return of money or property following rescission- which states-When an obligor exercises his right to rescind under subsection ( a ), he is not liable for any finance or other charge, and any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or property given as earnest money, down payment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the obligor, the obligor may retain possession of it. Upon the performance of the creditors obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the obligor, at the option of the obligor. If the creditor does not take possession of the property within 20 days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for it. The procedures prescribed by this subsection shall apply except when otherwise ordered by a court. After thoroughly reviewing my contract I also noticed that Navy Federal Credit Union had included my " Right to Reject the arbitration agreement '' but failed to provided me with the appropriate form of written notice published and adopted by the Bureau ( CFPB ) for my " Right of Rescission ''. ( 15 USC 1635 ( a ) ) - ( a ) Disclosure of obligors " right to rescind '' which states- Except as otherwise provided in this section, in the case of any consumer credit transaction ( including opening or increasing the credit limit for an open end credit plan ) in which a security interest, including any such interest arising by operation of law, is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the transaction until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section together with a statement containing the material disclosures required under this subchapter, whichever is later, by notifying the creditor, in accordance with regulations of the Bureau , of his intention to do so. The creditor shall clearly and conspicuously disclose, in accordance with regulations of the Bureau, to any obligor in a transaction subject to this section the rights of the obligor under this section. The creditor shall also provide, in accordance with regulations of the Bureau, appropriate forms for the obligor to exercise his right to rescind any transaction subject to this section.

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