Consumer complaint received 2022-02-02
Company: NAVY FEDERAL CREDIT UNION
State: NV
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem related to refinancing

Complaint:
On the XXXX of XX/XX/XXXX an alleged contract was made with Navy Federal to refinance a XXXX XXXX, XXXX. At this time, a check with Navy Federal was not received. The XXXX XXXX XXXX was financed under XXXX XXXX XXXX on XX/XX/XXXX. XX/XX/XXXX, I was hit by two vehicles causing my car to be totaled. XXXX took possession of the vehicle on XX/XX/XXXX. I called and spoke with a Navy Federal Member Service Representative. I informed the representative that my car was totaled so there was no need to move forward with the alleged agreement. I told her that I no longer needed the check I was supposed to pick up from my XXXX XXXX. The Representative informed me that it was still in my best interest to obtain the check and send it to XXXX XXXX XXXX regardless of the condition of my car. During that phone call, we arranged for said check to come in the mail using XXXX XXXX XXXX XXXX. The check was delivered XX/XX/XXXX. XXXX XXXX XXXX received the check XX/XX/XXXX. XXXX XXXX was fully aware that my car was damaged before they check was sent out. Taking the advice of the representative has caused me problems financially. Im unable to use my Navy Federal account. Navy Federal has added two past due payments to my account, they have added late fees and they also charged my savings account {$20.00} because Navy Federal was not listed as the first lien holder. Now, Im dealing with late fees, and harassment from Navy Federal trying to collect an alleged debt. The first alleged payment was due XX/XX/XXXX. XX/XX/XXXX, I was contacted by XXXX insurance adjuster stating that the value of the car was {$16.00}, XXXX. XXXX has the check and has been ready for almost two months to send the check to Navy Federal. Ive communicated to Navy Federal on numerous occasions that I will not be making payments on a car that is no longer in my possession, especially since there is a check ready for Navy Federal. Navy Federal needs to do what is required by XXXX to obtain the check. If Navy FederaXXXX didnt take over the alleged payments from XXXX XXXX XXXX XXXX the car would have been paid off almost two months ago. 
Speaking with a Lawyer, looking into my options, I found that there were violations made by Navy Federal on the alleged contract/promissory note. These Violations voids the alleged contract. According to the Promissory note, Navy Federal follows the Truth in Lending Act.

In the Truth in Lending act, under Title 15 U.S. Code 1605, the Finance Charge in connection with any consumer credit transaction is the SUM OF ALL CHARGES. That includes late fees and lien fees from any title company. According to the contract/promissory note with Navy Federal XXXX XXXX XXXX XXXX is {$3100.00}. According to the Truth in Lending Act and the Federal Law, {$3100.00} is the only amount Im allegedly responsible for paying if this wasnt a consumer credit transaction. Also, under Title 15, 1605 ( 5 ) ( B ), Navy federal did not include insurance in the finance charge. XXXX insurance was charged separately. Also stated under U.S. Code 1605 ( b ) ( 1 ) and I quote charges or premiums for credit life, accident, or health insurance written in connection with any consumer credit transaction shall be included in the finance charges unless the coverage of the debtor by the insurance is not a factor in the approval by the creditor of the extension of credit, and this fact is clearly disclosed in writing to the person applying for or obtaining the extension of credit ;. This statement proves that I am the Creditor extending credit to Navy Federal.

Navy Federal pointed out in the Returned Loaned Payment Fee section of the alleged promissory note that under ( Section 1014, Title 18, U.S. Code, makes it a federal crime to knowingly make a false statement. Navy federal has willingly and knowingly BROKE THE LAW!

Pursuant to Title 18 U.S. Code 8, the term obligation or the other security of the United States, includes all Federal Reserve bank, Federal Reserve notes, bills, coupons, checks, drafts for money, certificates of deposit and, etc. This alleged debt under alleged promissory note is to be the obligation of the United States not the consumer. 
Pursuant to 12 U.S. Code 1431 banks can not loan money.

Pursuant to Title 15, U.S. Code 1635 ( 4 ), the Right to Rescind shall apply to all consumer credit transactions. The Right to Rescind was not included on the Promissory Note. Navy Federal NEVER sent me documents to Rescind. Again, you broke the law. According to the CFPB, 1026.23 ( f ), the Right to Rescission is only exempt to refinancing by the same creditor. 
According to CFPB 1016.7, and Title 15, U.S Code 6802 ( b ) Navy Federal was supposed to provide a form of opt out notice to consumers. Navy Federal has never sent a form of opt out notice, via email, mail, or electronically. I am demanding that Navy Federal remove the account from all three major credit reporting agencies. That includes, XXXX, XXXX, and XXXX. 
According to CFPB, 1026.13 Billing Error Resolution, I extended credit to Navy federal with my credit card under an open-end consumer credit transaction. So, there should not be monthly bills or monthly payments. When Navy Federal ran my social security number ( credit card ), alleged promissory note was paid in full. If Navy Federal claims this alleged loan/promissory note came from their Account, I demand that Navy Federal provides me with proof of the Accounting Ledger and, Im demanding proof of the Generally Accepted Accounting Principle ( GAAP ). This will determine if this alleged debt exist and is owed to Navy Federal. 
I am specific in what Im demanding. Do not send a copy of the alleged Promissory Note. I have that document in my possession. Provide me with what I asked for exactly. If Navy Federal doesnt provide the documents Im demanding, Navy Federal satisfy the loan account as Paid in Full. Navy Federal also agrees to provide Paid in Full documents so the lien placed on the title of the XXXX XXXX XXXX is removed. 
Pursuant to the Fair Debt Collections Practices Act ( FDCPA ), Title 15 U.S. Code 1692j ( a ) It is unlawful to furnish any form knowing that such form would be used to create the false belief in a consumer. Navy Federal has furnished deceptive forms illegally in the attempt to collect an alleged debt. Each law violated is a {$1000.00} charge owed to me. 
Pursuant to Title 15, U.S. Code 1692g, I as the consumer have a right to validate this alleged debt.

Pursuant to Title 15 U.S. Code 1692c. ( c ) I am notifying you in writing that I REFUSE to pay this alleged debt. I am demanding that you cease all ILLEGAL communication with me through all mediums. 

Pursuant to Title 15 U.S. Code 1692c. ( c ) ( 2 ) I am invoking my specified remedy as a consumer, and as the original creditor. I am demanding all the following : 1. ) Remove Navy Federal Accounts from ALL consumer reporting agencies ( XXXX, XXXX, XXXX ). Documentation needs to be provided. 
XXXX. ) Send Accounting Ledger AND XXXX documents by mail AND via email. 
XXXX. ) Close the LOAN account as satisfied and paid in full providing proof of payment. You do not have permission to close my checking or savings account. 
XXXX. ) Return the {$20.00} taken from my savings account to satisfy the lien on the title. This was taken without my permission. Breaking the Federal Law voids contract/promissory note. 
The CFPB, among other Entities will be receiving this letter, including the documents I want to upload with my complaint. Failure to comply, will result in Litigation. 

On XX/XX/XXXX, By law, I requested that this consumer credit transaction be disputed and that further interest be stopped. Navy Federal broke the law, denied my dispute and is currently reporting negatively to my consumer credit report. Today, XX/XX/XXXX, I just received an email from my XXXX Account letting know that potentially negative information from Navy Federal is reflecting in my account which caused me to lose XXXX points. According to the FDCPA, while a dispute is in process, the company is not allowed to update any new information. Navy Federal deliberately ignored my request and broke

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