Consumer complaint received 2021-05-21
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
I contacted Navy Federal on XX/XX/XXXX at XXXX to XXXX on Friday and spoke with XXXX XXXX He refused to give his last name or any identifying information. He claims to be the supervisor would not give me the Manager of Banking Operations when asked. He said we are not suppose to give any information. 

I told XXXX that XXXX XXXX checking account was overdraft by over {$500.00} dollars. There was {$660.00} unauthorized Navy Federal Credit Union transaction. XXXX XXXX never gave authorization for this money to be deducted by Navy Federal Credit Union. 

On XX/XX/XXXX XXXX XXXX took money out of XXXX XXXX account totaling {$660.00} and put his account in the negative over {$500.00} dollars. 

They claim they took it out because of a bill that told them to issue credits to peoples accounts. 

XXXX XXXX reasonably assumed when he received {$660.00} in his account that the money was his stimulus money being deposited to his account. XXXX reasonably thought this because he received no notice before the disbursement of any money being deposited into his account that would be a loan to be repaid back. There was not any notice before any loan or temporary credit from Navy Federal Credit Union before the loan funds hit the account. 

XXXX called Navy Federal after seeing the funds and notified them of this and the representative on the phone told him it was apart of the stimulus package bill just passed. 

So, XXXX interpreted this to be his stimulus payment. 

It was only a month after he received notice in XXXX, XXXX that this was a provisional credit given by Navy Federal and not his stimulus payment. 

XXXX was shocked as to why Navy Federal did not NOTIFY him once the bill was passed via his phone number, post on their website or their mobile website with all this information about the bill or any information about the advancement of credit and issuance of a loan to customers that would have needed to be repaid in full. 

I have explained that proper notice to customers was not given by Navy Federal Credit Union before the disbursement of funds. They never indicated it was a loan. They sent first notice only months after the issuance of a provisional credit and only after stimulus funds were received in customers bank accounts already. They did not give anyone the opportunity before disbursement to deny the funds to be deposited into bank accounts before it was disbursed to the accounts. 

The failure of Navy Federal Credit Union to provide notice of this matter has resulted in overdrafts with no protections. We explained to Navy Federal that more time was needed to repay a loan that was not authorized just deposited into accounts. 

The confusion happens because no notice was sent before the money just showed up in the bank account. It was deposited first then the notice of a credit came after the disbursement to accounts. There was not an opportunity to reject the funds. 

They just used the money to pay over the limit balances instead of allowing the customer to pay their own balances. 

Now they just putting accounts in the negative when the purpose of the stimulus relief bill was to help people not to be in a position of owing banks. 

More time should be given to at least repay the loans and not two 60 days unless you have signed an agreement of repayment under those terms of 60 days. These terms were not agreed to. If Navy Federal deposited the money they should be able to work out terms with customers on repayment and not put accounts in the negative. 

I am totally disappointed with this and this negative balance needs to be resolved immediately that Navy Federal has put me in due to them taking out {$660.00} on XX/XX/XXXX leaving my bank account negative. 

I can be contacted via email or phone Thank you XXXX XXXX

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