Consumer complaint received 2016-09-23
Company: NAVY FEDERAL CREDIT UNION
State: NJ
Product: Bank account or service
Sub-product: Other bank product/service
Issue: Account opening, closing, or management

Complaint:
Navy Federal Credit Union violated several laws pertaining to the CARD act of XX/XX/XXXX. This is an attempt to resolve this violations before taking NFCU to small claims court. If this can not be resolved, NFCU will be receiving a lawsuit from me for the alleged violations : 1. NFCU opened a credit card for my account in the amount of {$2000.00} and let me spend those funds, I then attempted to pay this amount and received confirmation. NFCU then froze my credit card account, and did not apply the payment to my account, generating undue interest. This is a direct violation of the law and is punishable with a {$1000.00} fine, and any undue interest. 

2. NFCU opened an account for me and specified that they pulled my credit report under certain conditions. the conditions that I was read by the agent on the phone, is that I fell under the category of having a Grandfather XXXX, and because of this I was eligible to use NFCU 's services provided, I allowed them to pull my credit report. I agreed to this. Today I received notice that NFCU has chosen to " freeze '' my account, until I can provide documentation that does n't exist since I am not in the Military, and that they are unwilling to accept my grandfathers SSN ( because they have no way of verifying XXXX servicemanship from an SSN ), and a statement showing I am related to my grandfather. NFCU changed the terms and conditions of membership to something not listed on their website. Specifically the website states : " If you have an immediate family member who has joined or one who is eligible to join, you can become a Navy Federal member. Immediate family members include grandparents, parents, spouses, siblings, grandchildren, children ( including adopted and stepchildren ) and household members. '' I told the person opening the account my Grandfathers name for sponsorship, and he said this was not necessary. Changing the terms of membership, is a violation of The Fair Credit Reporting Act in relation to the agreement that was used to authorize a credit pull. This violation has a penalty of {$1000.00} under the law, unless the credit pull is removed. 

3. NFCU did a second credit pull for the credit card, which again is pursuant to the agreements listed on the website. If I am not eligible for membership due to new terms not stated in the legal documents, this is a direct violation of the The Fair Credit Reporting Act for the second credit pull, and thus would need to be removed or would be eligible for a second penalty of {$1000.00}. 

I am more than willing to submit my grandfathers SSN, and name as a sponsor. However he does not have a XXXX or documentation pertaining to his service in the XXXX which occurred XX/XX/XXXX. Your computer should be able to connect to the government 's system to verify eligibility. 

I demand that you accept my proof as stated per the website, and unlock my account. Or accept payment for my credit card as required by law, close out my full account, and remove any negative hard credit pulls from my account. 

If you do not comply with this legal demand, I will be sending out a formal lawsuit in the amount of {$3000.00}, in pursuance to the CARD act of XX/XX/XXXX, and the The Fair Credit Reporting Act.

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