Consumer complaint received 2023-05-16
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Struggling to pay your bill
Sub-issue: Credit card company won't work with you while you're going through financial hardship

Complaint:
XXXX XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX  XXXX XXXX IA XXXX Subject : Complaint against Navy Federal 's refusal to honor loan and credit card deferment due to XXXX Dear Sir/Madam, I am writing to file a formal complaint against Navy Federal regarding their failure to honor my request for a loan and credit card deferment due to COVID-19. Despite contacting Navy Federal on XX/XX/2023, requesting a deferment for all my loans and credit cards due to being unable to work after contracting COVID-19, they did not provide me with a deferment under their COVID-19 policy. I was only granted a one-month deferment on my car loan and two personal loans. Unfortunately, by the time I recovered and was able to return to work, which took XXXX months, my credit had been severely damaged due to numerous late payments. 

Upon contacting Navy Federal to inquire about their COVID-19 deferment program, I was informed by a representative that I hadn't asked for it, despite clearly having requested it during my initial call. When I pointed out that I had indeed asked for a deferment, the representative acknowledged that they could have granted it to me and admitted the error. However, they refused to reverse the late payments and directed me to speak with a supervisor. The supervisor, named XXXX, exhibited extreme rudeness and refused to remove the late payments, citing a signed promissory note as the reason for his inability to take action. Moreover, when I requested to escalate the matter further, XXXX claimed that he had no supervisor or anyone above him within the organization. It was like talking to a company I never dealt with before. I was pleading with XXXX to listen and understand all these late payments were unlike me and due to covid. This has cost me sleepless nights, anxiety, shame, and embarrassment. it felt like he was taunting me by repeatedly stating ( you signed a promissory note ) over and over again. 

Subsequent attempts to rectify the situation proved equally frustrating. When I contacted Navy Federal on the XXXX and the XXXX of XXXX, I was advised to contact the credit bureau myself, despite Navy Federal being the entity responsible for reporting the late payments. I explained that I needed Navy Federal 's cooperation as they were the ones who reported the late payments. However, their response was indifferent to my concerns, despite my never having missed a payment and my utilization increasing due to relying on credit cards to cover living expenses. 

On XX/XX/XXXX, I made another call and this time I was informed that if the error was Navy Federal 's fault, they would remove all the late payments. I emphasized that I had specifically requested their XXXX policy and was denied it, thereby confirming their responsibility in this matter. Unfortunately, this conversation offered no resolution to my credit report predicament. 

I have been a loyal customer of Navy Federal for 10 years and have always maintained a pristine credit history with all my creditors, and I have refused to work with any other bank. I had no late payments before I fell sick. I am a member and hope to be a member forever. I never anticipated that they would treat me in such a callous manner. As a XXXX individual, I am devastated by the repercussions of these late payments, as they will significantly impact my credit score for the next seven years. It is deeply unfair and unethical that I will be nearly XXXX XXXX XXXX before I can regain eligibility for credit, potentially jeopardizing my ability to secure housing due to rising rental costs, if I decided to want to relocate or downsize I'm now stuck. With the way the economy is now the worst thing to have is bad credit, if my car breaks down I'd be stuck without transportation. credit affects every area of your life now. 

Therefore, I kindly request the assistance of the Consumer Financial Protection Bureau in investigating this matter and intervening on my behalf to have the late payments from Navy Federal removed from my credit report. The actions of Navy Federal have caused me significant distress and financial hardship, and I believe their refusal to rectify their errors is a clear violation of fair practices. 

Enclosed with this letter, please find relevant documentation, including records of my communication with Navy Federal, to support my case. I trust that the Consumer Financial Protection Bureau will thoroughly investigate this matter and ensure that appropriate action is taken to rectify the situation. 

Thank you for your attention to this urgent matter. I eagerly await your response.

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