Consumer complaint received 2017-10-23
Company: NAVY FEDERAL CREDIT UNION
State: HI
Product: Debt collection
Sub-product: Credit card debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Collected or attempted to collect exempt funds

Complaint:
To whom it may concern, I submitted a complaint to Navy Federal on XXXX/XXXX/XXXX regarding their practice of automatically transferring funds from a joint savings account that I am on with my husband to pay for a Navy Federal credit card that my husband is on individually. I am including a copy of the original complaint with this submission to the CFPB. My concerns are that funds that are jointly owned by me are being taken by Navy Federal when : I am not a joint obligor or authorized user of my husbands credit card ; I am not sure when the credit card account was opened ; I do not have access to payment information ( including due dates, balances, payment arrangements, etc. ) on the credit card and am not aware of any alleged delinquency until the funds have already been taken by Navy Federal ; My husband told me that he has the payments for his credit card scheduled to come out of his Navy Federal checking account and that the payments have been made every month, yet Navy Federal continues to take payments from our joint account ; Since I am not an obligor on the credit card, Navy Federal will not discuss the credit card account with me or allow me to dispute the transfers. I therefore, have no recourse although I have rights to the joint account from which they took funds ; I was not made aware at any time, in account opening disclosures or otherwise, by Navy Federal that funds placed in a joint account can be pledged as security with the consent of only one joint account holder, for repayment of their individual credit ; It is unclear if they have exhausted all efforts to collect from my husband and his individual accounts before pulling the funds from our joint account ; Thus far, Navy Federal has not sufficiently addressed my concerns. 
Navy Federal responded on XXXX/XXXX/XXXX with the following : " Thank you for using Navy Federal 's eMessaging Service, XXXX XXXX. If the minimum payment is not received by the due date and a payment arrangement has not been communicated to our Collections Department, funds up to the full past due amount can be transferred to cover the amount owed. The funds are transferred in accordance with the Credit Card Application Disclosure statement, in which he pledged security interest in any share or joint account ( excluding IRA accounts ) should the credit card fall past due. 

Should you require further assistance or have any additional questions, please contact us at XXXX. Our hours of operation are Monday through Friday from XXXX XXXX to XXXX XXXX and weekends from XXXX XXXX  to XXXX XXXX, Eastern time. We look forward to hearing from you. '' The above response from Navy Federal indicates that my husband pledged a security interest in our joint account in accordance with the Credit Card Application Disclosure statement, which Navy Federal has not provided me a copy of, because I do not have a credit card with Navy Federal. I do not live in a community property state and did not live in a community property state at the time that I opened an account at Navy Federal, nor does my husband have power of attorney to act on my behalf in pledging assets owned or partially owned by me as security for anything. To date, Navy Federal has not addressed my concerns in phone conversations with representatives or provided an adequate response to my written complaint. Please review my initial complaint. Your assistance is appreciated in resolving this matter. 
XXXX XXXX

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