Consumer complaint received 2018-06-09
Company: NAVY FEDERAL CREDIT UNION
State: MO
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Changes in terms mid-deal or after closing

Complaint:
On XX/XX/XXXX i applied with navy fed credit union for a used auto loan. I was approved for {$38000.00} at 5.39 % interest for what i was told a XX/XX/XXXX or newer truck with less than 25k miles. I told then rep i was looking at a XXXX XXXX ltz with XXXX miles because it was a nicer truck and the lowest miles i could find outaide of new. She told me that the rate MAY change little but wouldnt go.higher than 5.9 or 6 % but with the low miles it should be 5.39 % ( i have this call recorded ) note the lowest rate offered on the said vehicles.is 4.09 % so i was close to the lowest. I said ok thanks send the cbeck. The details in the loan docs.where as she stated on the phone. Tuesday XX/XX/XXXX i purchased the XXXX XXXX   XXXX ltz with XXXX miles on it and.financed XXXX. When the dealer called to.verify the check and amount, they asked the navy fed rep if the rate would change, the rep replied that as of right now no it would stay at 5.39 % but they didnt know for sure untill its completed and closed. I said ok lets do the deal. Today sat XX/XX/XXXX i got onto my navy fed account and it shows they raised the rate to.9.69 % almost 5 percent higher than quoted. I contacted navy fed ( also recorded ) and was told there was nothing they could do. I dont understand how.they can raise tbe rate that high witbout my authorization as i wouldnt of bought the truck. I asked what the lowest available.rate was he said 4.09 % and i was approved for 5.39 % so.i asked how it goes up 5 % just because i bought a 2 year old vehicle with XXXX miles on it. ( note the truck is worth XXXX $ ) he said thats how.it works and refused to talk further. After this i started applying to refinance with other banks and was offered 4.5 % for 72 months. So as we can see its not a credit or debt problem. It seems like bait and switch or fraud to me. Now to refi i have to hurry up and pay sales tax to register and pay title fees, pay navy fed a XXXX loan origination fee, and the accrued interest so basically i was not only duped but im gon na be out XXXX $ in this whole ordeal. They should not be able to get away with this and lie. They had tbe opportunity to disclose the higher rate and refused to be honest which is fraud. I advised them i will be contacting this agency, the XXXX, and an attorney and i was hung up on. I have sent multiple emails to the loan department with no.response. i think they should either lower the rate back to 5.39 or because of the inconvenance and added stress they caused me match the 4.5 % offered by XXXX XXXX XXXX. If not they should remove all fees and interest so i can.just refinance the XXXX i borrowed so im not out money due to thier games. Im a XXXX vet and i expect a bank designed to help military to help us not hurt us. Just so its out there i have a credit card with them and i have NEVER missed a payment, and a XXXX $ auto loan i just paid off in exactly 1 year. Not one missed payment. I feel people should be aware of this when shopping. Thank you

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