Consumer complaint received 2019-12-22
Company: NAVY FEDERAL CREDIT UNION
State: FL
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Problem with paying off the loan

Complaint:
XX/XX/XXXX, 3 DAYS BEFORE XXXX Dear CFPB : My Navy Federal Credit Union used motorcycle loan was paid in full on at its full maturation date which was 61 months from XX/XX/XXXX. ( Original amount : {$11000.00} ) After paying off the loan on time, I was hit with a bill due in 30 days for {$1100.00}. This is the first communication I had with the bank about it, not knowing what it was for and INCORRECTLY ASSUMING it was some sort of balance or balloon payment due unbeknownst to me because I was not made aware by any means what this amount represented so here is my inquiry email to NFCU : Subject : Used Motorcycle Loan - XXXX - {$1100.00} Payment Your Message XX/XX/XXXX : Hello, I am confused about why my payment amount is now the full balance. If the full balance is NOT due, am I due for another payment on the XXXX? 
Navy Federal Response XX/XX/XXXX : NFCU Response : Hello, Mrs. XXXX. According to our records, your Used Motorcycle loan has a maturity date of XX/XX/XXXX and the remaining loan balance is due in full at that time. If you are unable to pay your loan in full at this time. We encourage you to contact our Collections Department directly for assistance with a payment arrangement. We can be reached at XXXX, any counselor can assist you and our hours of operation are Monday through Friday from XXXX XXXX  to XXXX XXXX  and weekends from XXXX XXXX to XXXX XXXX, Eastern time. We look forward to speaking with you as soon as possible. 

As you can see, the explanation was still unclear to me as to what the {$1100.00} figure represented. I was simply told that this was a remaining loan balance due. I was still confused as to how there would be any monies due, much less {$1100.00} on a XXXX total loan amount. 

I was in between jobs for about over a month and was going through a background check for consideration on a new job while at the same time caring for my husband who was hurt in a head on collision just over a year ago and is unable to work. My credit lines are at their maximum limits and I had been borrowing money from family and close friends to survive while at the same time keeping up with all payments and living very scarcely. My bank accounts ( Personal ckg, business ckg. and several credit accts. ) are also with NFCU, and they chose to transfer my last dollar in any of my accounts ( {$140.00} ) out if my ckg. account to apply to this large mystery amount due. They had done so in the past several times when my payment was overdue. ( Never 30 days late, but would sometimes pay after the due date ) but I assumed that because they serve the military, that they would not do this if they were not legally able to do so, however, I never checked until XX/XX/XXXX when a member service representative said that I signed this right to them in my loan paperwork. I personally never saw it, or do not recall it. On XX/XX/XXXX, I was left then with no money for food or gas or any type of survival and trying to stay composed as I was in the middle of my background check. I was stunned and crying when I called the bank on or around XX/XX/XXXX when I realized I had no money left in my bank account when trying to buy food. I spoke to another member service representative who gave me an emergency gift of {$50.00} and advised me to go to the bank 's " financial hardship '' website and provided the web address. She said that she would put notes on the account stating not to transfer any more funds for 14 days and that NFCU would replace the {$140.00} once I made contact through the website. This was evening, so I went to the website the following morning, XX/XX/XXXX so I would have a more clear head. In the days to follow, I was contacted by the " hardship department '' ( aka collections department as I later found out ) via phone and answered one time in the middle of conversation with my new employer just to let her know I couldn't speak at that time and would definitely call back. I called back and received the woman 's voicemail and left a message. We played an unfortunate game of phone tag, what with the holidays ( on her end, I'm not having a holiday this year ) and performing all the tasks related to an extensive on boarding process for this new perspective employer, which happens to be a competing credit union to NFCU. I was hired and began work on XX/XX/XXXX, I've now been there just one week into my probationary period and my first pay will be withheld so I am in desperate need of funds to make it to work on a 45 minute commute back and forth and have none! I can not negative entries on my credit report or my employment will be terminated, fyi. On XX/XX/XXXX, my husband 's retirement check was auto deposited into our bank account, which we allocate to our rent each month. It is small but needed, {$320.00}, and after midnight on XX/XX/XXXX NFCU transferred the {$320.00} to the balance of this unknown fee after stating it wouldn't be transferred and that I would receive the first transferred amount back ( {$140.00} ) once I made contact with their so called hardship department ( aka collections dept. ) They have not put me in jeopardy with my my place of residence AND my job, over this unknown amount. On XX/XX/XXXX I was finally able to reach someone in their collections dept and relay this entire story to them. I pressed them to tell me what the {$1100.00} figure represented and he could not understand what it was. I was placed on long term hold until he returned after speaking with a supervisor and said that this amount represented a {$29.00} fee that was assessed each time I paid after the due date over the life of the loan 22 times over 61 mos., totaling : {$630.00}. The remaining {$500.00} is interest on the {$630.00} for a grand total of {$1100.00}. ( just for fun, I suppose ) and 25 days into the fiasco since it first showed up on my online account will now trigger a 30 day late to my credit report in five ( 5 )  business days if I do not pay it in full or have a payment plan in place and I will eventually lose my new job and be in jeopardy of losing my place of residence and possibly facing homelessness. On XX/XX/XXXX during my last phone call, NFCU stated that they will replace the monies into my checking account that they transferred out, a total of 3 transfers ( forgot to mention another transfer for {$2.00} toward the fee ) but it will take 2-3 business days. Being that the first day is Sunday, this doesn't count, and the third day is XXXX, that won't count either. That's if that even happens because NFCU didn't come through the last time they promised. 

I believe that the assessment of the interest on top of accumulating late fees collected on the back end of a loan is an unfair lending practice, or if not, should be. I am contacting the credit bureaus as well to dispute the whole amount due to non disclosure or at least the interest. 
Please, please help, I am out of time very soon. 
Respectfully, XXXX XXXX XXXX

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