Consumer complaint received 2023-11-18
Company: NAVY FEDERAL CREDIT UNION
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/XXXX, I received this Garnishment Notification : " Navy Federal received legal notice of CHILD SUPPORT ORDER in the amount of {$24000.00}. If you don't have the funds necessary to cover this amount, your account will be frozen immediately. To resolve this matter, contact CALIFORNIA DEPARTMENT OF CHILD SUPPORT SERVICES at XXXX and reference case number XXXX. '' I contacted both parties and informed them that this had to be a situation of fraud and requested they both do a thorough investigation before proceeding with assisting with fraud, identify theft, securities fraud, breach of fiduciary duties and tort violations against me by high jacking my funds. I never got a call back from either party, only an email : " {$7900.00} was withdrawn from your XXXX XXXX account ending in XXXX on XX/XX/XXXX. '' This left me with {$0.00} to my name. Then had the nerve to notify me that next day that my account was overdrawn, and I'd be charged a fee! 

I immediately informed Navy Federal that an unauthorized withdrawal had wiped out my bank account. Upon transferring me to the Levy Department, I was informed that NAVY FEDERAL AUTHORIZED AND MADE THE WITHDRAWAL ON MY BEHALF based on the letter sent to them, from the California Child Support Division stating I owed them money for unpaid child support. I told them it was fraudulent, and they are in violation and asked them to return my funds. It was the middle of XXXX and XXXX season, and I need to pay my bills, rent, and use that money to complete a project that was underway and near completion. On top of that, the project was out of town, and this would immobilize me and my small business. The Navy Federal representative told me there was nothing they could do about it because I should have paid my child support. I informed them that I had never been to California and don't have any kids in or from California. I asked for the proof that was gathered from the investigation, showing this debt, lien, and levy to be valid. I was told it was valid because it came from " the government '' in the form of a letter my accounts would be frozen until the said amount was paid in full. 

In XXXX of XXXX, The Refund Disbursement Check was sent to the Navy Federal Corporate Office, but they returned the check and told them to send it to my personal address. I requested Navy Federal to return the funds electronically since that's how the funds were fraudulently disbursed from the start. They told me it was out of their hands, and I'd have to wait on the check to arrive and deposit it into my account. 

Here we have clear evidence of, but not limited to : Fraud ( constructive ) - in the sense of a court of equity, properly includes all acts, omissions, and concealments which involve a breach of legal or equitable duty, trust, or confidence justly reposed, and are injurious to another, or by which an undue and unconscientious advantage is taken of another. 

Malice - In the law of torts, malice means a wrongful act done intentionally, without legal justification or excuse, and with the knowledge that it will cause injury or damage to another. 
- In the law of libel and slander, malice means an evil intent or motive arising from spite or ill will, personal hatred or ill will, or culpable recklessness or a willful and wanton disregard of the rights and interests of the person defamed. 

Gross Negligence- in banking is a term that refers to the professional negligence or misconduct of a bank or a banker in their dealings with customers or clients. 
- A lack of care that demonstrates reckless disregard for the safety or interests of others, which is so great it appears to be a conscious violation of other peoples rights or duties. Gross negligence is a heightened degree of negligence representing an extreme departure from the ordinary standard of care. 
- Failing to verify the identity or the authority of the person who requests a transfer or a withdrawal from a customers account, resulting in unauthorized or fraudulent transactions. 
- Breaching the fiduciary duty or loyalty to the customers or clients by acting in their own interest or against the customers or clients best interest. 

The results of these actions led to a great season of turmoil : 1. Utilities were shut off in XX/XX/XXXX. 
2. Evicted in XX/XX/XXXX. 
3. Breached contract for not completing the project upon the agreed time causing me to lose what had been put into the project, ( time, travel, resources ) and final pay, which was approximately {$45000.00}, XX/XX/XXXX. 
4. My fianc called off the wedding accusing me of lying, cheating, and having a child in California that I didn't tell her about, XX/XX/XXXX. 
5. Ruined personal and business reputation causing loss of opportunities.

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