Consumer complaint received 2018-12-26
Company: NAVY FEDERAL CREDIT UNION
State: DE
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem caused by your funds being low
Sub-issue: Bounced checks or returned payments

Complaint:
Few months ago I had to report several fraud claims because some transactions were still pending, some I missed on my phone and some I had to investigate further. Still, NFCU has no way for consumers to modify or add to an existing fraud claim. Next thing I know, without calling me or anything they cancel my VISA DEBIT ATM Card to my ONLY account. Said I had too many fraud claims, then denied the last claim that they used to freeze my ability to access my funds. 
So, jump forward to now, I still have a checking and savings account with NFCU and the ONLY way to deposit funds, or access my funds is to go into a branch. Im been out on XXXX and FMLA so when my job messed up my last 3 direct deposits and mailed checks I had no way to deposit my checks and they bounced stuff and gave me more fees. Then with the holidays they closed early. So, I try depositing a check with the mobile app and its denied. Still NFCU is racking up more fees on my accounts. 
Also, have a NFCU Visa Rewards and I tried to deposit a XXXX check on that card and was told basically if NFCU liked me I could but as of XX/XX/XXXX they will not be reinstating my Visa card on that account either. The account they kept letting charges go through when there was no limit to cover it. Then sent those same charges over to my Checking account. 
So, without even a phone call from this place they have completely closed and restricted anyway for me to access my own accounts. Ive even asked for just anATM Card to make deposits and they said they dont have savings acct ATM cards. 
Nevertheless, you fined NFCU over {$23.00} million dollars in XXXX for doing similar actions to consumers. Also NFCU was advised to come up with rules guidelines and they still havent. 
Read below : WASHINGTON, D.C. Today the Consumer Financial Protection Bureau ( CFPB ) took action against Navy Federal Credit Union for making false threats about debt collection to its members, which include active-duty military, retired servicemembers, and their families. The credit union also unfairly restricted account access when members had a delinquent loan. Navy Federal Credit Union is correcting its debt collection practices and will pay roughly {$23.00} million in redress to victims along with a civil money penalty of {$5.00} million. 

Navy Federal Credit Union misled its members about its debt collection practices and froze consumers out from their own accounts, said CFPB Director XXXX XXXX. Financial institutions have a right to collect money that is due to them, but they must comply with federal laws as they do so. 

Navy Federal Credit Union is a federal credit union based in XXXX, Va. As a credit union, it offers a wide range of consumer financial products and services, including deposit accounts and loans. Membership in the credit union is limited to consumers who are, or have been, U.S. military servicemembers, Department of Defense civilian employees or contractors, government employees assigned to Department of Defense installations, and their immediate family members. It is the largest credit union in the country, with more than {$73.00} billion in assets as of XX/XX/XXXX. 

The CFPB investigation found that Navy Federal Credit Union deceived consumers to get them to pay delinquent accounts. The credit union falsely threatened severe actions when, in fact, it seldom took such actions or did not have authorization to take them. The credit union also cut off members electronic access to their accounts and bank cards if they did not pay overdue loans. Hundreds of thousands of consumers were affected by these practices, which occurred between XX/XX/XXXX and XX/XX/XXXX. The practices violated the Dodd-Frank Wall Street Reform and Consumer Protection Act. Specifically, the CFPB found that Navy Federal Credit Union : 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 68,000 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 700,000 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. 
Enforcement Action Pursuant to the Dodd-Frank Act, the CFPB has the authority to take action against institutions or individuals engaging in unfair or deceptive acts or practices or that otherwise violate federal consumer financial laws. Under the terms of the order, Navy Federal Credit Union is required to : Pay victims {$23.00} million : The credit union is required to pay roughly {$23.00} million in compensation to consumers who received threatening letters. Most will be eligible for redress if they received one of the deceptive debt collection letters and they made a payment to the credit union within 60 days of that letter. In addition, all consumers who received the letter threatening to contact their commanding officer will receive at least {$1000.00} in compensation. The credit union will contact consumer So how is it XXXX, almost XX/XX/XXXX and they are still cutting off members electronic access to their accounts and bank cards if they report fraud too much or if they think you are being reckless or if they did not pay overdue loans etc. So, Ive had plenty of money for days but no way to even make a deposit into my own accounts. I appealed and got nowhere. This messes with my job, my insurance bounced from bill pay because I couldnt deposit money. I need help! I told the NFCU credit card department about my checks being messed up and mailed and they just seemed to not care and basically told me I was getting fees for not telling them 48 hrs sooner. I didnt know 48 hrs ago. So, they are closing my account when my card expires in XX/XX/XXXX. I should be able to make deposits and withdrawals from my own accounts. I need help because they are still doing this to others too. Please help me. Im hundreds negative now when I should be plus if I would of been able to deposit my check Friday after hrs and on Saturday after hrs. Two checks for thousands and they are steady bouncing items. Please call XXXX

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