Consumer complaint received 2023-01-12
Company: NAVY FEDERAL CREDIT UNION
State: AZ
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Unable to receive car title or other problem after the loan is paid off

Complaint:
Navy Federal Credit Union ( NFCU ) Subject : Used Vehicle Loan On XX/XX/XXXX, a letter was submitted to Navy Federal Credit Union requesting that they take my name off from the vehicle loan agreement and make XXXX XXXX XXXX XXXX liable for the amount of {$13000.00} for breach of contract and fraud. On XX/XX/XXXX, NFCU called me to notify me that my request was denied and stated it was a civil matter between XXXX XXXX XXXX XXXX and me. I requested the decision to be in writing and I have not received it as of XXXX 

The car dealer where I purchased the vehicle, XXXX XXXX XXXX XXXX, was engaged in unlawful practices with their bussiness license by falsifying documents, misrepresenting, concealing, or failing to disclose important facts concerning the sale of vehicles and committed fraud when they sold me the vehicle knowing that they would not be able to provide NFCU with a title. XXXX XXXX XXXX XXXX breached the contract by not being able to provide NFCU with a title within the time required by law. I am requesting Navy Federal Credit Union to open an investigation and take enforcement action on XXXX XXXX XXXX XXXX and to take my name off the loan agreement and make XXXX XXXX XXXX XXXX or whoever cashed the check responsible for the amount of {$13000.00}. 

On XX/XX/XXXX, NFCU approved the loan application and provided me with a XXXX XXXX  report that did not list any legal issues or title problems with the vehicle. My agreement to the terms and conditions of the loan was only if the dealer conducted bussiness in accordance with the law. The check was written to XXXX XXXX XXXX XXXX not to me. 

On XX/XX/XXXX, XXXX XXXX XXXX XXXX committed fraud by selling me a vehicle that they knew they would not be able to provide a title for. XXXX XXXX XXXX XXXX fraudulently sold me a vehicle for {$18000.00}, which {$5000.00} were paid cash and {$13000.00} with a check financed by NFCU, written to XXXX XXXX XXXX XXXX. XXXX XXXX XXXX XXXX or someone cashed the {$13000.00} check knowingly that they would not be able to provide the title and that the vehicle had legal problems. 

On approximately XX/XX/XXXX, XXXX XXXX notified me that sales representative XXXX XXXX at XXXX XXXX XXXX XXXX was willing to take the vehicle back and refund the total purchase price amount of {$18000.00}. On XX/XX/XXXX, I took the vehicle back to the dealer, XXXX XXXX inspected and took possession of the vehicle and gave me a {$5000.00} cashiers check from XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX ) written to me and a delivery letter/receipt. I made NFCU aware and submited delivery receipt to them. XXXX XXXX XXXX XXXX said it will take them approximately XXXX XXXX  to pay Navy Federal Credit Union the {$13000.00}, but refused to put it in writing. To this day, XXXX XXXX XXXX XXXX has not made a payment to NFCU or attempted to contact NFCU for payment arrangements. XXXX XXXX XXXX XXXX is under XXXX XXXX for fraud and unlawful practices in XXXX XXXXXXXX XXXX  ( See Case numbers below ). 

According to XXXX XXXX XXXX from the XXXX XXXXXXXX XXXX XXXXXXXX, XXXX XXXX XXXX XXXX was engaged in unlawful practices with their bussiness license by falsifying documents, misrepresenting, concealing, or failing to disclose important facts concerning the sale of vehicles. XXXX XXXX XXXX appeared to be the main man and have control over XXXX XXXX XXXX XXXX making all decisions and transactions of the sale and return of the vehicle. After returning the vehicle, XXXX begin ignoring my phone calls and did not replied to my text messages. On XX/XX/XXXX, XXXX XXXX replied to XXXX of my text messages saying that I needed to contact XXXX ( no last name given ), another sales representative because he no longer worked there. 

XXXX XXXX XXXX XXXX breached the contract by not being able to provide a title and committed fraud by cashing the check. It is NFCU 's duty to take enforcement action related to fraud on XXXX XXXX XXXX XXXX and their financial institution to find out who cashed the check. I am requesting NFCU to remove me from the loan agreement and make XXXX XXXX XXXX XXXX or XXXX XXXX responsible for the debt or payments. NFCU raised the interest rate on my loan for not receiving the title within a specific time frame which was totaly out of my control. XXXX XXXX XXXX XXXX XXXX did not provide a title to NFCU, NFCU converted my loan XXXX to a prevailing unsecured rate of XXXXXXXX XXXX, and increased my XXXX  payment amount of approximately {$200.00} to {$270.00}. I have been cooperating with NFCU to resolve this and keep my account current. I have made hundreds of attempts to reach out to XXXX XXXX XXXX XXXX and XXXX XXXX asking them to submit payment. 

On XX/XX/XXXX, I contacted XXXX XXXX to see if it was possible for me to recover the vehicle from XXXX XXXX XXXX XXXX and negotiate with NFCU to take possession of the vehicle to pay off the remaining balance outstanding on the loan or to come to an agreement, but learned from XXXX XXXX that XXXX XXXX XXXX XXXX had sold the vehicle on XX/XX/XXXX for {$13000.00}. XXXX XXXX also told me that XXXX XXXX XXXX XXXX bussiness license had expired on XX/XX/XXXX and that they did not renewed it, and that their car lot was empty and possibly permanently closed. 

How is it possible that XXXX XXXX XXXX XXXX was able to sell this vehicle again? Why is XXXX allowing this type of bussiness continue operating and no legal penalties and why the car was not impounded if it was under investion? Why did the XXXX XXXX  report did not alerted me or the other buyer of danger or problems with this same vehicle? 

On XX/XX/XXXX, I submitted a demand letter of debt to XXXX XXXX XXXX XXXX through XXXX XXXX mail demanding the amount of {$13000.00}. 

On XX/XX/XXXX, I filed a fraud report on XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) took a courtesy report ( case # XXXX ) at the XXXX station. Once the report is approved, they will forwarded it to the XXXX XXXX XXXXXXXX XXXX XXXX 

I am a XXXX XXXX NFCU member with exellent credit and have had several used vehicle loans throughout the years with NFCU. All loans have been paid in full and payments were made on time every XXXX XXXX XXXX XXXX Currently XXXX XXXX has XXXX used vehicle loan accounts open with NFCU, and the reason is because NFCU would not approve me a second loan without providing a title for the first XXXX. The sellers of these XXXX vehicles acted in accordance with the law and titles were released to NFCU for being the lien holder with no problems. I am the head of household and responsible of making payments for all XXXX loan accounts which are all current. TXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

Since the begining NFCU was informed of the issues with XXXX XXXX XXXX XXXX. NFCU has been a witness of the nightmare it has been for me to attempt to get them their title. Below is XXXX XXXX XXXX XXXX business information and XXXX case numbers. I am requesting that Navy Federal Credit Union take my name off the loan, or at minimum to suspend or freeze the loan account without any penalties and accumulating interest charges until this case gets resolved, and to open an investigation and take enforcement action against XXXX XXXX XXXX XXXX owner XXXX XXXX and sales person XXXX XXXX XXXX for XXXX and make them accountable for the amount of {$13000.00}. 

XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  : PURCHASE PRICE {$18000.00}

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