Consumer complaint received 2023-03-02
Company: NAVY FEDERAL CREDIT UNION
State: GA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
On or around XX/XX/XXXX I received a message from the email portal regarding my everyday checking account at XXXX XXXX ending in XXXX that stated there was an item in the amount of {$160000.00} that was returned due to insufficient funds. I had never had an insufficient funds notice for my account because I have alway managed it correctly. I called the bank to try to get an understanding of why I was receiving this notice. I spoke with a bank representative who indicated that the amount in question was from a life insurance company called XXXX XXXX XXXX ( XXXX. XXXX XXXX XXXX of the XXXX XXXX ). Immediately I told her I do not have a policy with that company. She asked me if I was sure I didn't have a policy with that company because upon her review of my account, she saw that there were charges in the amount of {$1600.00} for the months of XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and the present month XX/XX/XXXX. These charges collectively totaled {$8000.00}. I told her I had no knowledge of any authorized charges by me for any insurance policy of any kind. I asked her to transfer me to the fraud department to file a complaint. She transferred me to the department I requested. I spoke with a gentleman who listened to my complaint and helped me navigate a way to fix the issue. He closed the above-noted account and opened a NEW everyday checking account ending account. He moved the remaining money into the new account and left the old account open because there were some pending deposits that were scheduled to come through the account. He advised I update any automatic deposits as soon as possible in order to avoid any future issues with receiving deposits to the old account. He then initiated a dispute for all of the charges that totaled {$8000.00} for the life insurance unauthorized charges. He then issued me a provisionary credit and advised that there would be an investigation into the amounts in question and that if the charges were authorized the credit that was provisioned would be reversed. On or about XX/XX/XXXX, I received another notice from the bank that informed me that an investigation had started regarding my complaint and it was found that fraud was committed. They returned {$160000.00} to me for the month of XXXX 's payment. There were still 4 payments that were still being disputed. On XX/XX/XXXX, I received a notice from the bank that indicated my dispute was denied because they received a confirmation from XXXX Bank that indicated I did authorize the charges. I immediately asked for the proof they received from XXXX. They sent me a copy of a digital signature from XXXX XXXX ( my husband ) for the policy. I asked to have the matter escalated for a second review. I cited that I did not authorize those charges at all. I told them I had written proof that I had spoken to an insurance agent named XXXX XXXX XXXX ( the owner of the agency ) who discussed with me a policy for Whole Life insurance back in the end of XX/XX/XXXX. I was unable to get insurance for myself because I had a pre-existing condition that prevented me from doing so. He advised that I could get someone else to do the policy, then list me as the beneficiary and assign it over to me. I then gave him my husband and he was approved for the policy. XXXX sent me a notice a few days later once the insurance underwriters approved XXXX XXXX for the policy. XXXX initially signed the paperwork electronically and sent it back to XXXX. Upon reviewing the application a little closer, I noticed the policy in question was not for a whole life insurance policy like we discussed, instead it was actually for a Universal Life insurance policy which we had not talked about in our earlier conversation. I was not comfortable moving forward. I asked XXXX to explain why he switched the policy type without our knowledge. He sent me an email response that indicated the Universal Life policy would be better for me and offered to do another presentation for my husband and I to compare both policies. On or around XX/XX/XXXX we had the meeting. During the meeting, I told XXXX that my husband and I had to privately review the information and would get back to him with a decision. On or around XX/XX/XXXX, I sent a group text to XXXX, XXXX and myself with a response that said that though we liked the insurance option he presented we would not be able to move forward at that time because there were some financial obligations we needed to address. XXXX responded with did I know when I would be ready. I did not respond because I did not have a future date in mind. Please note, on XX/XX/XXXX, I connected via phone with XXXX and asked him if he pushed the policy through without my permission. I reminded him of our texed correspondence to not put the policy through on XX/XX/XXXX. He assured me that he did not put it through and that he would connect with the XXXX XXXX XXXX to make sure they did not put the policy through. He asked me to give him at least 5 days to get back to me with an absolute response. On XX/XX/XXXX when I received the denial letter from the bank, I called XXXX again. He did not pick up the phone. I left a detailed voicemail alerting him to what happened and that he needed to sort this out with the insurance company because it is now considered fraud because I did not authorize those charges. Meanwhile, I spoke back with the bank and told them I had collected all of the written correspondence between XXXX and I that showed I did not make the authorization for him to put the policy in force and collect funds as an " in-force '' policy. I was under the impression he followed my instructions. The bank told me that although there is written proof that I did not authorize the charges, their policy is such that with ACH withdrawals, they will only allow 90 days for a customer to make a dispute. Anything after 90 days I will have to " eat '' the loss. I totally disagree with this as there is written proof and they are ignoring it. They also had already initially given me a provisional credit for the full amount. I do most of my banking with them with amounts in their bank totalling {$100000.00} or more and had never had a reason to file a report of this kind. It is clear that their policy causes a disparate impact to me and my accounts.

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