Consumer complaint received 2021-03-13
Company: NAVY FEDERAL CREDIT UNION
State: IL
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
I deposited a check in the amount of {$1200.00} at an ATM on XX/XX/2021 at XXXX receipt # XXXX. The check was deposited to my checking account at Navy Federal Credit Union. I located this ATM from the Navy Federal Credit Union website, that warned of a 5 day hold for funds to become available. Navy Federal Credit Union received and began processing the funds from the check on Monday XX/XX/2021. On XX/XX/2021, the check posted, but Navy Federal Credit Union debited my checking account for the full amount intended to be deposited. On the morning of XX/XX/2021, I called Navy Federal Credit Union and waited on a 30 minute hold before speaking with a representative. The representative stated that the funds of the check were verified but the funds will not be deposited. He stated that the check was not signed on the back and that the institution will return the check to me. I explained that there was nothing in the policy requiring a check made out to the account holder to be endorsed unless the check was deposited by mail. I also explained that it was improper to take that action without disclosure and to draw on my account to fund the return check. The representative placed me on another hold and reversed the additional charge from the account and suggest I redeposit the check once I receive it. I requested a supervisor and spoke with XXXX. I explained what happened to XXXX and she responded by sitting in silence as she searched the Funds Availability Policy for about 10 minutes to find whether or not the check should have been rejected due to lack of endorsement. She stated on the recorded line that there was no policy to support the credit union 's actions and that she would request the funds be released. She placed me on hold and then disconnected the call. After about 15 minutes, she called back and stated that Navy Federal Credit Union did not reject the check, but the institution that owned the ATM rejected it on XX/XX/2021. This is false, because the funds were sent directly to Navy Federal Credit Union and received on XX/XX/2021 as stated above. She explained deposits at a Navy Federal Credit Union ATM does not require a signature and would have been available quicker. She promised a letter was sent the previous day to explain everything but she could not tell me what it was or view the letter. I explained that the other institution never had power to reject the deposit since it was done at an ATM that linked to a Navy Federal Credit Union account. As I also explained that if done at an ATM owned by Navy Federal Credit Union, I would have had access to partial funds already the call was disconnected again. This time, XXXX did not call back. After being completely disrespected and disregarded, I decided to call back later that afternoon. I waited on another 30 minute hold and spoke with supervisor XXXX who started the call in an unprofessional unenthusiastic tone of voice. I attempted to explain what happened in the first two interactions and XXXX frequently interrupted and attempted to redirect the conversation and end it prematurely. He also confirmed there was no policy to support the actions taken by the institution and began to yell at me about being unproductive and unwilling to assist further. That was offensive and abusive language for me to hear from the supervisors of the institution that was entrusted with assisting management of my checking account in a fair and lawful manner. I told XXXX that the reason no signature is needed for a check deposited at an ATM is because a debit card is required to complete the transaction which makes the debit card PIN the signature. He stated he had no knowledge of this, which is not typical for a financial institution supervisor. I asked several times to provide remedy of their error as this occurrence created a financial hardship that will persist several days if no action is taken. I requested a provisional credit of the amount that would have been made available had I deposited at a credit union owned ATM which is {$220.00}. Again, XXXX yelled that he would not provide me any remedy or any provisional credits regardless of hardship because of a check that was never required to be signed. XXXX then unprofessionally hung up on me and ended the call. I am unable to drive for work, purchase groceries, buy gas, or even pay for any expenses for myself or my family. This has put me at the mercy of Navy Federal Credit Union and the postal service and confined me to my apartment for days.

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