Consumer complaint received 2021-02-18
Company: NAVY FEDERAL CREDIT UNION
State: VA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Charged too much interest

Complaint:
Navy Federal Credit Union ( NFCU ) calculated my interest on my credit card under the SCRA benefits incorrectly, by paying off my " balance transfer '' rate '' first with my over the minimum payments, instead of putting the extra amounts toward the current transactions for the months they were made that were being calculated at 14.99 %. 

In XX/XX/XXXX, I was called to XXXX XXXX with the XXXX. I contacted NFCU that month to let them know about it and request the SCRA benefits. It took them 4 months to finally institute the benefits, despite my calling multiple times to inquire. They stated they were " backlogged '' and they would get to it. 

Late XX/XX/XXXX, they finally " converted '' my card amounts under SCRA ; however, they did not put the full amount that was owed in XXXX to the 6 %, as the law requires, Instead, they refunded some of the interest I paid but put all the extra monthly over-the-minimum due payment amounts toward the " balance transfer '' interest rate which should have been put to 6 % and all the additional money paid in should have gone to the current monthly charges that I was charging. This means they paid off something that should have been at 6 % before paying off the higher monthly charges that were at 14.99 %. This is a violation of the CARD act, paying a lower interest rate first, and a violation of my SCRA rights that require the entire amount owed on my card at the time of XXXX XXXX to go to 6 %, regardless of whether it was a balance transfer rate, etc. At the time, the balance transfer rate was expired and was at the same rate as purchases, or 14.99 %. 

In XX/XX/XXXX, I contacted them and explained that I believed this to be the case and asked that they look into it. They did nothing. I contacted them again in XX/XX/XXXX 2 more times and spoke with several people and requested a call from a supervisor, again they did nothing. During this time, I also put in several online messages through their portal, 4 of them, and they did NOT respond to any of them and again did nothing. In XX/XX/XXXX, I talked to someone named XXXX, apparently he was a SCRA supervisor, for 90 minutes and he stated he would go back to the analyst that completed the SCRA calculation transaction to get more information and that he would return my call. He never did. I called again last week and again asked for someone to call me back and again they did nothing. The newest statement showed no change and it's clear they don't want to change it or help me figure this out when it's clear they are in the wrong. They obviously don't care and so I'm filing this complaint with you, the SCRA/DOJ, the credit bureaus and the XXXX. 

Attached you will find all the statements since I went on XXXX XXXX, as well as a spreadsheet I created that shows what was owed at the time of XXXX XXXX and all the charges and payments made during this timeframe. They paid off one of the 6 % items first, thus now forcing me to pay 14.99 % on items I charged while on XXXX XXXX overseas which should have been paid first. Unlike most cards, they do not lower the rate for current charges while on XXXX XXXX ( like XXXX, XXXX, XXXX ), only those obtained PRIOR to XXXX XXXX ( and apparently don't even want to do that for us! ). The fact they waited to " update '' my account makes me also think they did it on purpose so they could charge me the way they did, which is clearly a violation to the CARD act and the SCRA. It's not about the money, it's about the principle, and it's clear that NFCU doesn't have any principles to help servicemembers when they need it the most. I'm incredibly disappointed and hope you can help me rectify this issue. 

For any other servicemembers that read this, DON'T USE THE NFCU CREDIT CARDS ON XXXX XXXX. There are many other better options by companies that clearly care about us when we are called up. Thank you.

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