Consumer complaint received 2016-08-08
Company: NAVY FEDERAL CREDIT UNION
State: MD
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
During the past 2-years I have experienced extreme incompetence in the servicing of both my home mortgage loan ( XXXX ) and an equity loan ( XXXX ) as well by Navy Federal Credit Union ( " NFCU '' ). In the past, I would call NFCU 's mortgage department and/or customer service and request transfers from my checking account to pay both loans. Unfortunately, due to several frustrating and harassing calls by NFCU 's mortgage department stating that my accounts were delinquent, when in fact they were NOT, I ceased calling-in to pay both loans via telephone. Over the years NFCU consistently would assess late fees and call with harassing requests that were INCORRECT. I began going into the branch and making both loan payments directly with the tellers at either XXXX and/or XXXX, MD branches. Unfortunately, these same incompetent ERRORS continue to happen! I received a harassing phone call from NFCU stating my account is delinquent when in fact the teller incorrectly applied the payments on the same day that I make BOTH payments. Late fees are accessed that are based on NFCU 's errors and attempting to get clarification from NFCU representatives proves frustrating and often unbelievable. Their technology is obviously not advanced to meet the simplest demands from clients/customers, nor capable of actually reflecting accurate payments. It is an antiquated NFCU practice to make a loan payment, funds must be transferred from an existing account, thus, prohibiting direct cash payments when in a branch, and I strongly believe this creates confusion for the tellers. 

Bottom-line, I want ( 1 ) an accurate statement per loan listing each and every payment I have made within the past 2 years, and ( 2 ) removal of all late fees. Additionally, I want ( 3 ) a separate statement providing full disclosure ( dates and corrections ) of the incorrect application of funds to either the equity line or mortgage loan payments. Today I spent over an hour on a call with a NFCU mortgage representative, XXXX ( XXXX ), who had to transfer to a mortgage supervisor, XXXX ( XXXX ) and both were more confused than I was with the status of my loans and the application of my payments. XXXX even questioned why late charges were not applied to my account when in fact my payment have been made in advance or due dates yet NFCU 's mortgage system does not accurately correspond with the checking account records ( which lists the actual transfers from my checking to pay the loans ). 

The customer service has been unbelievably inept and amazingly automatically accuses customers of being delinquent when in fact they are NOT DELINQUENT. A customer MUST keep all receipts received from the BRANCH because the information placed in NFCU 's computer system/technology by the NFCU 's inept representatives does reflect actions taken by consumers. NFCU should be placed on some form of regulatory supervision and it should be publicized so that all customers are aware of the magnitude of dysfunction that ends up costing the customers and being profitable to NFCU.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation