Consumer complaint received 2022-09-15
Company: NAVY FEDERAL CREDIT UNION
State: MI
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
To Whom it may concern, After becoming XXXX and causing a large reduction in my work works hours I experienced some difficulty paying bills. I was less than 16 days past paying my credit VISA account XXXX. I get every other day deposits from my business ( which is also with Navy Federal ), I was a little short of paying the full bill and I had already spoken to Navy Federal about being short, so I was going to wait for a few more additional days before paying the minimum payment. Before I could pay it myself, the system automatically paid my bill for the account ending in XXXX with the available balance ; which was {$110.00} at the time. It was involuntary. When I selected that credit card, the system shows a balance of {$0.00} due. I was not able to make any further payments toward the minimum amount due after the system made a payment on my behalf. My account no longer had that message preventing me from checking my account right away and I was no longer seeing the past due notice on any of my accounts. Within the 30 days allotted before negative payments are reported to the credit bureaus, I ended up transferring money from my business account to my personal account to pay for all of my bills with Navy Federal in XXXX and then following and doing the same and paying in XXXX. When the system made a payment for me, it didnt notify me that a payment was made on my behalf, so I had no reasonable reason to call at the time to see if something had been settled correctly because the system showed that it had. I sat on the phone for hours with Representatives trying to figure out what had happened. My account no longer had that message preventing me from checking my account right away and I was no longer seeing the past due notice on any of my accounts. Unbeknownst to me, there was an {$11.00} balance that was transferred from XXXX 's minimum payment due to XXXX minimum payment. It was a consequence of the systems involuntary payment on my behalf. The communication I did receive about my account being past due was not specific about which account. I had to file a claim about a purchase on my business account which left my account in the negative. I had been receiving phone calls about it for the previous past week. My code word for both personal and business is the same. When I verified myself, and when the agent wasnt clear about which account he was calling about, I thought he was referring to the issues with my business account. In I replied that I get it every other day deposits and the account would be back in good standing in a day or so. Which my checking account was, but not my credit card ending in XXXX ( which I still had no knowledge of being 30 days late at this time ). Just recently the {$11.00} was reflected on my credit report as a derogatory late payment. My credit score has dropped XXXX points. I have not had any late payments past 30 days with you all before. I believe that this is a small misunderstanding and a mix-up and a system error on NAVY FEDERALS behalf . If Navy Federal has a system set up to make involuntary payments on consumers ' behalf, Navy Federal should also have a protocol and system set up to also ensure that consumers are clear and aware when it happens if there is a balance left over, when exactly the payment will be made so consumers can be aware of it and also provide a clear way for consumer 's to pay the remaining balance that the system leaves behind. This is a clear credit reporting ERROR that resulted from the involuntary system and I am asking if you all will submit information to the credit bureaus in an effort to remove the delinquency that resulted from an error caused by your system. I have not been more than 30 days later previously and this is incorrect information that Navy Federal is reporting this information to the credit bureaus with no regard of their consumers rights.

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