Consumer complaint received 2023-05-12
Company: NAVY FEDERAL CREDIT UNION
State: MO
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Struggling to pay your bill
Sub-issue: Credit card company won't work with you while you're going through financial hardship

Complaint:
I am in the medical field as a XXXX and ever since XXXX, nothing has been right with my finances. It has been difficult and caught in a spiral. My income has been down and I am currently overwhelmed with debt.Yes, it would be easy to file bankruptcy and " charge off '' my debt, however I choose to try to work hard and make this work so that my debtors will not regret their trust in me. Even if it means that I eat less and help my child going thru college less. Because of this I still have 100 % on time payment history on my credit report. I have not yet let anyone down. That being said, I have explained this to Navy Federal over my credit card when I was hit worst back in XXXX of XXXX at that point they were getting XXXX a month from me and I simply could not do that anymore. We have agreed to close my account and they put me on a " lowered payment '' for a year. And said that we would " revisit this in another year '' ( In which I would have to apply for assistance again. I don't know who does this after an account is closed, but apparently they are the only ones who do. I have spoke to several Credit counselors and said they are unsure about this practice. Usually when someone closes their account the goal is to collect the principle ( maybe some interest ) and move on. Not Navy Federal. They put me on a " plan '' of $ XXXX since then. EVERY year at some point my payment baloons from $ XXXX to more than double! Like $ XXXX or more! I have called every year to explain that I can not make the payment in all honesty. This year they wont do anything about it. They " financial counselor '' chastised me. Made me feel like less than a person. Embarrassed me and at the end of the day refused to lower the payment. I have called and tried to speak with them since I recieved the bill. Basically a XXXX weeks ago. Every day trying to get in touch with that department. Spending hours on hold or talking to people that cant or wont help. No one will help or even talk to me at all. I asked for a manager in which they either claimed there was NOT one OR that they would call me back. Never did. Sice XX/XX/2021 I have paid $ XXXX on their lowered plan like clockwork. Never late, always on time. I have noticed that after every payment there is NO balance. Meaning its interest. I have been on a hamster wheel and balance is only going up even after all the payments. They can pull my payment history and see for themselves. I dont understand. If the account is closed and I tell you how much I can pay, why not take it and help me find a way that I can eventually pay this off even if it takes years instead of getting nowhere. I cant believe this is how they treat military families. I dont know what else to do besides not pay anything so that maybe someone will call me back to discuss this and help me to get this paid and not by a payment that I honestly can not afford that is XXXX more than I was paying on a CLOSED account. This really is taking advantage of people and predatory practice if they are doing this to other hard working and honest people.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief