Consumer complaint received 2020-05-07
Company: NAVY FEDERAL CREDIT UNION
State: CT
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Getting the loan

Complaint:
Summary : Due to Navy Federal Credit Union not properly processing my paycheck protection program loan, I received a fraction of what was due. They said its too late now, but I'm hoping you can please help me. 

Details : PPP Loan Nightmare ( almost {$4000.00} in forgivable loan not received ) The PPP has led me to hours of stressful work trying to understand it, but after those hours I applied through the Navy Federal Credit Union ( NFCU ). In doing so, I was entrusting the NFCU to approve whatever amount I was truly due, and disperse it. However, by the time I completed the application, funding wasnt available. Yet, a 2nd round of funding became available, and the loan was processed, but at an amount below what we were truly due. 

We were sent documents numerous times, with issues including : 1. Signatures of both employees of our LLC were needed ( we were called about this after waiting a bit on getting documents sent to us ), and yet there was no opportunity to sign both, because they never sent the documents to my wife. 
2. The next round of documents were signed, yet we were told they were incorrectly done, so we had to get another round of documents to sign. 
3. Signatures were hurriedly completed, as it was feared the 2nd round of funding would be exhausted and no one at the time said we were secure w/the funding for our loan, especially considering the above issues created days of delays. And, if we can sign wrong documents and be able to sign correctly done documents for NFCUs sake/benefit, then we should be able to also get a 2nd chance to sign correct documents for our sake. 
Here are the two ways in which the loan was not processed at the correct amount, according to the federal government ( IRS ) : I. According to https : //home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf? utm_medium=email & utm_source=govdelivery, under " 5.Question : '', it says, " plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips '', and dependent care is a fringe benefit that is excluded from taxable XXXX wages & tips. The following link shows where the IRS describes dependent care as a fringe benefit and as exempt from said taxation : https : //www.irs.gov/publications/p15b See " Table 2-1. ", which lists it as a " fringe benefit '' and then how it is exempt from said taxation [ if under {$5000.00} ]. 
Therefore, on the W3 & W2 forms submitted to NFCU, the amount spent in payroll for dependent care, {$4100.00}, should have been applied. 
II. The FAQ says : " 2019 employer retirement contributions '' shall be included calculation. These appeared on my 1120S tax return, which was either not requested by NFCU for documentation, or somehow not received. 

If there were any documents submitted that appeared as blank/unaccepted ( one person at NFCU said, after the loan was dispersed, they had a document they couldnt read because form fields appeared blank, and I was told screenshots of documents were not accepted, too ), I should have been informed before anything was [ ordinarily ] irreversible. Any good credit union works with members to ensure the members get the best benefit, not rush through it and gyp the member, and I think NFCU may be good under normal circumstances, but this time we had a situation where if the documents were not accepted, or any were missing, I should have been told 1st. And, it was clearly NFCUs error to have not included the dependent care benefits that were supposed to have been included, and were on a form that was received and accepted. 

I've had a long history with NFCU, so I've been quick to trust in any procedures done there. I do realize this is a new program, and NFCU is trying to get through a lot of applications, but I believe my small other local credit union would have let me know if any issues, corrected issues, and gotten me the maximum loan that the FAQ you sent me explains. Nevertheless, I hope theres a solution that can be found to correct this situation.

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