Consumer complaint received 2023-11-21
Company: NAVY FEDERAL CREDIT UNION
State: AZ
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
My usual paycheck, from my employer the State of Arizona ( XXXX XXXX XXXX XXXX ), was sent to me via mail due to a direct deposit issue on payroll 's end. The paycheck 's total was for {$1300.00}. I received the check on XXXX the XXXX. I originally wanted to use mobile deposit on the navy federal app but it said my funds would be on hold until Friday the XXXX. So I called Navy Federal and they canceled the mobile deposit so I could deposit it on monday in person at the local branch. and have access to the funds on XXXX. I deposited the check on XXXX at XXXX at the local navy federal branch. There was no issue and she deposited it and I have a receipt that said I would receive the funds the next business day ( today ). 

I got a message from Navy Federal at XXXX that say my funds were on hold because they have reasonable cause to believe that the check is uncollectable from the paying bank based on confidential information that indicates that the check may not be paid. If the bank pays the check, you can expect it receive your funds within XXXX business days. 

I would like to note that I have never cashed a bad check in my life. 

I went up to the XXXXXXXX XXXX XXXXXXXX and talked to customer service and the bank manager. They told me there is a security department that I can call and talk to about lifting the hold. I waited there on hold for about XXXX minutes but I had to go back to work. So I called the customer service line to be directed to the security department. 

I have talked to three different customer service agents and one supervisor who that there is no one who oversees the security holds on checks and that it was an automated system. I asked, " So the automated system can put a hold on any check for any reason and there is nothing anyone can do about it? '' The supervisor said yes that's correct. They said they do not know why the bank manager would say there is a security department that can help me. 

It does not make any sense when they say there is no one who oversees the process. How is that possible to leave it up to machines to make the decision? 

I asked if they could cancel the check and give it back to me to cash elsewhere. They said no because the check HAS ALREADY BEEN ACCEPTED AND PROCESSED. If that is true then why is there a hold? 

This is my usual paycheck from The State of Arizona that has been issued and processed with no issue since XXXX. I showed the bank my paystub, and emails from my payroll indicating there is nothing wrong with the check. They said the hold doesn't make sense but there is nothing they can do. It is a government paycheck ; how can they say they don't think the bank has the funds ; it is the government. 

I am a public servant who is also an active military spouse. We were relying on this money to buy food for XXXX. I was told because of the holiday, the hold on my account will not come off until Tuesday the XXXX. This makes no sense and no one can give me a straight answer. My next paycheck comes on the XXXX, So essentially my family went XXXX weeks without pay because of Navy Federal. This has caused my family significant distress and hardship.

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