Consumer complaint received 2023-04-24
Company: NAVY FEDERAL CREDIT UNION
State: GA
Product: Checking or savings account
Sub-product: Checking account
Issue: Opening an account
Sub-issue: Unable to open an account

Complaint:
I've had a Navy Federal checking & Savings Account and have been a member since XXXX over the years, I've obtained several items of credit, a vehicle ( paid off at maturity ), personal loan ( paid off in full at maturity ). In XXXX I was approved for two credit cards and a personal line of credit. About a year later I was unable to work due to a medical emergency ; therefore, the majority of my bills became past due including my credit accounts with navy federal ; I originally started payment plans until I was no longer able to pay. During this time, my checking account and savings accounts were still in active status and to my understanding in " good standing '' and remained open with the required savings minimum of {$5.00} and sporadic deposits into the checking account. In XXXX, I began receiving settlement offers for the outstanding credit card debt that had accrued. I was advised that Navy federal had either charged off or written off the debt per my credit reporting status ; therefore, I was unsure of paying the debt through the third party XXXX XXXX. I contacted Navy federal directly in their loan/credit recovery department to confirm the validity of the settlement that was being offered and the representative verified the amounts of the settlement. In XXXX I paid the settlement balances that were agreed upon. My savings and checking accounts remained open and active with no issues. In XXXX XXXX I had a checking balance of about {$15.00} and deposited a retirement check of about {$500.00}. several months later, I voluntarily closed my checking account. At the time of closing, my account was in a satisfactory state and I received a full refund of all monies that were in my account at the time of closing which indicated " good standing ''. In XXXX XXXX I received a 1099-c from Navy federal showing the portion of my balance that was not paid in the settlement was to be counted as income, further indicating that the balance has been forgiven. In XXXX XXXX I attempted to reopen my account using my current membership and was advised that I was not eligible to become a member or open an account due to an outstanding balance. When I explained the above information to a representative, I was told that this is policy.. When reading Navy federal disclosures regarding a checking account/membership, it implies that as long as the account was not closed by Navy federal XXXX it could be reopened. My debts were credit related and were paid in settlement. I don't understand why I am being " punished '' twice and why there's still attempts to collect the remaining balance when I'm now required to claim it as income as a forgiven debt. XXXX was beyond my control and I genuinely did my due diligence and paid the settlement as agreed and had only hoped I would be allowed another opportunity with Navy federal to show my credit worthiness and rebuild my banking relationship. I just want understanding in why i am being denied an opportunity to re-open my voluntarily closed checking account.

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