Consumer complaint received 2022-10-25
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On Friday, XX/XX/2022, {$45000.00} was deposited into my Navy Federal Credit Union Checking account via XXXX XXXX  On Tuesday, XX/XX/2022, Navy Federal froze all my accounts and placed a hold on {$15000.00}. This was the remaining balance after 15 transactions. Upon inquiry to Navy Federal regarding the hold, they informed me the deposit was alerted by XXXXXXXX XXXX as a deposit into the wrong account. I stated to NFCU, that it was not in the wrong account. My account was the correct account, and I can prove it. 

I received a call on XX/XX/2022, from NFCU asking about the deposit. I explained the situation and did NOT give my consent for the funds to be returned. I was asked a second time by the representative about my consent to return the funds. I denied it by saying no. I do not consent to my funds being returned. Those are my funds. 

How did the $ XXXX deposit become a transaction in question? Because my business partner sold a property in his name. He instructed XXXX XXXX to deposit the funds into my account directly. As this business relationship soured, he went behind my back, lied to XXXX XXXX, and told them he gave them the incorrect account information. After he received his cash withdrawal from the transaction. Which I can prove. My portion owed from the $ XXXX was {$15000.00}. His portion was {$25000.00}. Which equals {$40000.00}. {$5000.00} was utilized to remedy existing business expenses paid from my account for both of us. Which I can prove in receipts to 3rd parties. The bank has the receipts also as a record of transactions. This business relationship I can also prove this, and I am also his legal power of attorney. 

Therefore, the amount of money frozen was my $ XXXX. The remaining balance. As NFCU investigated the so-called fraud, I was never contacted other than that one phone call. I have never received not one letter, email, NFCU app e-message, or text. To this date of this complaint, XX/XX/2022, I have not received any written correspondence from NFCU in regard to this matter. I have not been officially notified by written correspondence of a fraud investigation on my account. The communication has been one way, me calling NFCU to be updated on my account status. 

Friday, XX/XX/2022, I called NFCU at XXXX. I was on the phone until XXXX XXXX. Three and a half hours. In an attempt to discuss this matter and gain in-depth details about it. I called at XXXX and spoke to XXXX. She informed me that {$9000.00} was returned to XXXX XXXX. {$6000.00} was pending review. The security department authorized the decision based on the fraud investigation. The processing department is who actually issued the refund. I was then transferred to XXXX in the Wire department. From there I was transferred to XXXX who informed me to speak with the security department. I was on hold for 45 minutes when I decided to call on the other line to see if I was forgotten. That's when XXXX informed me the wait time was over 2 hours because it was 90 calls before mine. Clearly, this wait time is unacceptable, yet NFCU seems to be perfectly fine with allowing customers to wait that length of time. So I asked to speak with a supervisor. I was then transferred to XXXX. She informed me it was a 1 to 3-business-day wait on the security department. She advised I call back in the morning at XXXX XXXX. It was a Friday, so Monday was the next business day. I then asked about the wait time at XXXX XXXX, and if it is guaranteed, I would be connected to a live person. She informed me the wait time is still 2 hours, but it's best to call when they open. I asked, how is it best if it's not guaranteed I won't be placed on hold 2 hours because those 90 other people aren't calling then also? I was in disbelief that NFCU was aware of the absolutely unacceptable wait time yet is allowing it. 

No alternative was offered other than calling back and waiting. XXXX seemed to be impatient with my questions about the quality of the customer service. She withheld the name of her supervisor. When I asked to speak with the supervisor to complain about the wait time. She said ma'am there is no solution for you in this phone call. I agreed and asked how in XXXX an international banking institution doesn't have a phone call queue set up. When the wait time exceeds 10 minutes, the phone number is placed into a call-back queue, and when the number reaches the top, the number recorded is then called back. She agreed to escalate my complaint to a XXXX XXXX. Which I have not heard from until this present time. Regarding my {$15000.00}, $ XXXX was returned without my verbal or written consent, and the $ XXXX that is pending review was also escalated to Supervisor. A 3-4 business day wait for a return call. Upon my 3-and-a-half-hour phone call and wait time these questions were asked and could not be answered. 

Question 1 : How was the investigation conducted? I have been banking with NFCU for 13 years and have experienced 4 fraud investigations that I initiated, and 2 XXXX initiated. Of them I was called and questioned, a letter was sent, and the proof was requested to be submitted. If I needed to prove anything on my behalf. At this point, I was transferred to XXXX in the security department who was working remotely from home. To answer my question, I was put on hold. When he returned, I was told that XXXX XXXX requested the funds to be returned due to the money being deposited into the wrong account. 

Question 2 : How did XXXX XXXX prove the deposit was placed into the wrong account? His answer, once a bank sends an inquiry to NFCU about an incorrect deposit, NFCU simply honors the inquiry and returns the funds. They are required to do this. Its policy. 

Question 3 : Can I have the policy stated to me or can I find it on the website? He said he did not know the policy or where to find it. I asked whether he could find out. He placed me on hold and came back 15 minutes later and said it was an FDIC and XXXX guideline. I asked for specific guidelines. He could not recite it. 

Question 4 : So how does NFCU honor a request? What is the actual process? He answered after a 15-minute hold ; he said a Hold Harmless letter is submitted. XXXX XXXX submitted a Hold Harmless letter and NFCU honored it. So I looked up a Hold Harmless letter, and this is what I read : " A Hold Harmless Agreement is a contract between two parties designed to release one or both parties from legal claims. Most often, one party agrees not to sue the other party for any expenses, damages, or losses arising from a transaction or activity between the two parties. The agreement defines the activity or transaction for which the other party will not sue. A Hold Harmless Agreement may apply to one or both parties. Using this document is helpful when another is using your property or performing services for you. You may also be asked to sign a Hold Harmless Agreement when you participate in an activity hosted by another party. Other names for this document : Release of Liability, Liability Waiver, Hold Harmless Letter. '' ( www.rocketlawyer.com ) Question 5 : So NFCU signed a contract with XXXX XXXX  without my consent? If the money was refunded, it was not your money XXXX said. Really? How can you say this with no proof? 

Question 6 : So if it wasn't my money why was I called and asked do I consent to a return of funds? I said NO! 

Question 7 : If the money was not mine why was the money returned on the 29th day and not the next business day of the inquiry? XXXX didn't know. The bank is required to respond in no more than 30 days for an investigation. Also, I was not notified of the agreement to disagree with it. Therefore I was added to a contract I had no knowledge of, and my funds were returned without my written or verbal consent. This is fraud. 

Question 8 : Who was involved in the investigation and why was I not notified in writing? XXXX said the bank does not have to notify me. The particular person investigating was not an individual but a multitude in the department. 

Question 9 : Is this a new policy that XXXX adopted, with no notification of investigation? He said no. I said this was the 1st investigation I was not asked to submit information. 

Question 10 : Other than the Hold Harmless letter, did XXXX XXXX  provide any additional documentation of proof? Not that he sees or knows of. 

Question 11 : When will my {$6000.00} be reviewed for release? He can't say. He can not see that money on his screen. 

Question 12 : Who else is responsible for the decisions made on this transaction? That department or the checking/savings department. The supervisor is made aware of my request. 

In my opinion, NFCU committed a fraudulent act on my behalf by agreeing/making me a party to the Hold Harmless letter. The lack of investigation, no proof was asked of me to be presented to prove my side of the transaction is gross negligence on behalf of XXXX. I experienced discrimination, total disregard, unprofessionalism, injustice, and indecency. I was more than willing to cooperate. I called in 2x to inform NFCU of this. I waited 40 days to be disappointed by NFCU not working in my interest as a 13-year customer. Just as they have done in the past regarding investigations. 

Due to this treatment of injustice, I would not recommend this bank. Before this experience, I would have recommended it. This experience was eye-opening, and I am baffled by the handling of this situation and the phone wait time, which is all new to me. This has caused me a great deal of stress, anxiety, and migraines. My quality of life was greatly impacted. 

Upon this complaint, I demand a return of my funds to my account.

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