Consumer complaint received 2021-03-18
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
I booked a group vacation with The XXXX XXXX XXXX on XX/XX/XXXX, and I was due to travel to XXXX with them on XX/XX/XXXX. On XX/XX/XXXX, XXXX XXXX postponed my trip due to Covid- 19 travel restrictions. As you can see from the email, they offered me a refund credit note which was due to expire on XX/XX/XXXX. If I didnt use the voucher during this time-frame I would have been able to claim a full refund. 

*Please see the attached emails clearly showing that my trip was postponed I made the following payments using my NAVY Federal Credit Union ( NFCU ) Debit card, ending XXXX XX/XX/XXXX : {$240.00} XX/XX/XXXX : {$2900.00} Please note : The second payment of {$2900.00} was made from my NFCU Debit card via XXXX XXXX The XXXX XXXX XXXX had a commercial entity agreement with XXXX so my normal card rights apply. 

*Please see the attached XXXX XXXX receipts of payment with the confirmed date of trip XXXX XXXX went bankrupt on XX/XX/XXXX. It was at this stage I became aware that I would not receive the service that I paid for. 

*Please see the attached email sent to me by the insolvency practitioners, XXXX on XX/XX/XXXX, informing me of the administration. 

Under the Fair Credit Billing Act it is my right to claim a refund when the service I paid for is not received due to a company 's bankruptcy. I opened up a dispute with NFCU using the Visa chargeback code : 13.1 Merchandise services not received. 

Visa claim that a dispute must be processed no later than either : 120 calendar days from the Transaction Processing Date 120 calendar days from the last date that the Cardholder expected to receive the merchandise or services ( Not to exceed 540 calendar days from the Transaction Processing Date ). 

The time limit for making a claim should start from the date you were expecting to receive the service/trip not from the purchase date, given you are buying something to be delivered in the future. In my case this date should be the expiration of my refund credit note which is XX/XX/XXXX. Alternatively, they may use the date I found out that I would not receive the trip ( XX/XX/XXXX ). 

*see attached refund credit note expiring on XX/XX/XXXX NFCU initially opened the case and refunded me the full amount but XXXX XXXX merchant acquirer XXXX appealed my dispute on the basis that I may have been told that I was protected by XXXX XXXX financial failure insurance. My bank took the money back from me without giving me an opportunity to show them that XXXX was wrong I am not covered by insurance. 

The financial failure insurance was in place for XXXX XXXX customers only. This is made very clear on the flowchart sent to me by the Insolvency practitioners XXXX. 

*I have attached a copy of the flowchart sent to me by XXXX XXXX please see the red box in the bottom right corner clearly showing that US customers are not protected by financial failure insurance. 

I have been informed by The XXXX XXXX and the administrators for the company, XXXX, that I am not financially protected in any other way. Furthermore, the insolvency practitioner XXXX has confirmed that the flow chart that was sent to all XXXX XXXX customers was agreed and approved by XXXX themselves. 

I have received confirmation that I am not insured by the company 's insurers XXXX / XXXX. 

*Please see the attached emails from XXXX and XXXX confirming that I am not insured. 

The company 's administrators XXXX have told me to claim from my Debit card. 

I would like NFCU to re-open my dispute and refund me, in accordance with the Fair Credit Billing Act.

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