Consumer complaint received 2021-12-16
Company: NAVY FEDERAL CREDIT UNION
State: GA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
On XX/XX/2021, I used my credit card identification number to obtain a credit card account under an open end consumer plan as defined in 12 CFR 226.2 ( 15 ) ( i ) and 12 CFR 226.2 ( 15 ) ( ii ) respectively ; ( i ) Credit card means any card, plate, or other single credit device that may be used from time to time to obtain credit.

( ii ) Credit card account under an open-end ( not home-secured ) consumer credit plan means any open-end credit account that is accessed by a credit card, except : ( A ) A home-equity plan subject to the requirements of 226.5b that is accessed by a credit card ; or ( B ) An overdraft line of credit that is accessed by a debit card or an account number. Upon receiving my statement for the month of XXXX, It occurred to me that there was a billing error on the account, the account was in a positive balance but NAVY FEDERAL CREDIT UNION sent a billing saying that I owe a debt, how is this possible? If there was a debt owed, why isn't it showing as a negative balance? I then sent a billing error notice per the requirements listed in 12 CFR 226.13, titled Billing error resolution, in the mail to NAVY FEDERAL CREDIT UNION on XX/XX/2021. In the billing error notice, I consumer requested Documentary evidence pursuant to 15 USC 44 : Documentary evidence includes all documents, papers, correspondence, books of account, and financial and corporate records. The notice was sent to CEO : XXXX XXXX, the CFO : XXXX XXXX, at : and the NAVY FEDERAL CREDIT UNION billing error center ( XXXX XXXX XXXX XXXX, VA XXXX ) in which I have evidence of their delivery per the green return receipts all dated received on XXXX XXXX. In addition to the billing error I notified NAVY FEDERAL CREDIT UNION that the credit card account is an open end credit plan as it is defined by 12 CFR 226.2 ( 20 ) as : Open-end credit means consumer credit extended by a creditor under a plan in which : ( i ) The creditor reasonably contemplates repeated transactions ; ( ii ) The creditor may impose a finance charge from time to time on an outstanding unpaid balance ; and ( iii ) The amount of credit that may be extended to the consumer during the term of the plan ( up to any limit set by the creditor ) is generally made available to the extent that any outstanding balance is repaid. This debt has been prepaid with my credit card upon the competition of the consumer credit transaction. This debt has also been discharged because the obligation for all indebtedness is that of the United States pursuant to 18 USC 8 which states : The term obligation or other security of the United States includes all bonds, certificates of indebtedness, national bank currency , Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps. With that being solidified, I consumer in fact, sent in the remittance slip on the bottom of my statement to be credited to my XXXX account because it was sent to me in a positive status and I am aware that the remittance slip is a check and not a bill. 

NAVY FEDERAL CREDIT UNION has violated my consumer rights on THREE separate occasions while I have extended my credit and good faith and expected them to do the same. 

Upon extending my credit in XXXX with NAVY FEDERAL CREDIT UNION, my open end credit plan was not honored, NAVY FEDERAL CREDIT UNION has not zeroed out the balance each month and has created a false and deceptive form leaving me to believe that I owe a debt that is not owed. Pursuant to 18 USC 8 ; any and all bills/ indebtedness is the obligation of the United States as this debt has been prepaid.

I, consumer in fact, requested a credit limit increase in which I received a denial letter by NAVY FEDERAL CREDIT UNION on XX/XX/2021. This is an adverse action in accordance with 12 CFR 202.2 ( c ) ( 1 ) ( iii ) ; Adverse action. The term means : A refusal to increase the amount of credit available to an applicant who has made an application for an increase. NAVY FEDERAL CREDIT UNION has discriminated against me, pursuant to the Consumer Credit Protection Act and in accordance with the Equal Credit Opportunity Act as described in 12 CFR 202.2 ( n ) ; Discriminate against an applicant means to treat an applicant less favorably than other applicants.Despite the fact that I, the consumer, have extended my credit in good faith. Pursuant to 12 CFR 202.4 ( a ) titled Discrimination ; A creditor shall not discriminate against an applicant on a prohibited basis regarding any aspect of a credit transaction. In which a prohibited basis means ; means race, color, religion, national origin, sex, marital status, or age ( provided that the applicant has the capacity to enter into a binding contract ) ; the fact that all or part of the applicant 's income derives from any public assistance program ; or the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act or any state law upon which an exemption has been granted by the Bureau. I have exercised my right as a consumer to extend consumer credit in which NAVY FEDERAL CREDIT UNION has retaliated with an adverse action which is a direct violation of 12 CFR 202.4 ( a ) and is civilly liable up to {$10000.00} pursuant to 15 USC 1691e ( b ). 
On XX/XX/XXXX, NAVY FEDERAL CREDIT UNION sent a debt validation letter when documentary evidence was requested by me. In addition, despite receiving my remittance together with the billing error notice, NAVY FEDERAL CREDIT UNION proceeded to transfer the minimum balance in the amount of {$90.00} from my NAVY FEDERAL CREDIT UNION checking account to my flagship credit card account, this is theft and fraud by NAVY FEDERAL CREDIT UNION. In addition, NAVY FEDERAL CREDIT UNION has sent several alleged bills to my address and has now restricted the flagship card due to non payment. Because NAVY FEDERAL CREDIT UNION did not provide the proper documentary evidence as requested, they have now forfeited their rights to collect any amount on the account as it is clearly explained in 12 CFR 226.13 ( d ) ( 3 ) titled acceleration of debt and restriction of account prohibited which states : A creditor shall not accelerate any part of the consumer 's indebtedness or restrict or close a consumer 's account solely because the consumer has exercised in good faith rights provided by this section. A creditor may be subject to the forfeiture penalty under 15 U.S.C. 1666 ( e ) for failure to comply with any of the requirements of this section. NAVY FEDERAL CREDIT UNION has not complied with the communication in request for documentary evidence and has restricted my flagship account in order to receive an accelerated payment for an alleged debt, this is a direct violation of 15 USC 1666 ( e ) and NAVY FEDERAL CREDIT UNION has now forfeited ANY AND ALL rights to collect on this account.

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