Consumer complaint received 2023-01-25
Company: NAVY FEDERAL CREDIT UNION
State: MS
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/XXXX, I opened my banking app for Navy Federal Credit Union and found I had an extra checking account listed under my name. My husband was in the XXXX from a XXXX XXXX, so I did not call immediately, but did call after he was released on XX/XX/XXXX to report what I thought must have been an error made by an employee at NFCU. I had saw that funds had been transferred into the account and then transferred back out via ACH, totaling {$1300.00}. 

When I called NFCU to report the added account, I was told two loans had also been applied for in my name, and an external account added as well, a " XXXX '' XXXX XXXX. I filled out the requisite paperwork for the fraud claim involving the two loans as instructed by the NFCU rep and returned it via their secure messaging system. I thought it was over and done with once they closed my checking and savings accounts and opened new ones for me. 

On XX/XX/XXXX, my precious husband of nearly twenty years passed away - his XXXX simply gave out at XXXX XXXX XXXX. 

On XX/XX/XXXX, I logged into my account to see my balance and to my utter horror, I was now overdrawn by over XXXX {$1100.00}. There was a debit done on my new checking account entitled " Adjustment '' for {$1300.00}, removing from my account the money that was transferred out from the fraudulent account to the external " XXXX XXXX XXXX XXXX. I called NFCU and was flatly told my claim had been denied. I immediately filed a Security Appeal, I filed an Identity Theft Affidavit with the FTC, froze my credit reports, and filed a police report and sent all that in to NFCU. 

Today on XX/XX/XXXX I received back notice from Navy Federal that they denied my appeal even. I had nothing to do with this crime, I had no knowledge of it occurring, I did not knowingly give anyone any access whatsoever to my account, debit card information, or online banking credentials, and yet I am being penalized to pay for a crime I did not commit nor had anything to do with it. This is an absolute outrage. I called immediately again and was transferred to a supervisor. He told me that since NFCU was not able to recover the funds from the external " XXXX XXXX XXXX XXXX, that it was too bad so sad essentially. 

From Navy Federal 's website : " Your case will be assigned to a Fraud Resolution Specialist to determine whether an unauthorized transaction occurred, and to pursue reimbursement for such transactions as appropriate. A Specialist may contact you if additional information is needed for the investigation of your claim ; they dont conduct criminal investigations.

The amount in question will be placed in a dispute status. You dont have to pay the disputed amount or finance charges on that amount while its being researched. We may post a provisional credit to your account within 10 days of opening the claim so that you have access to credit pending the outcome of the investigation. This credit is temporary and may be removed if, after conducting a reasonable investigation, the Specialist is unable to validate your claim. If the provisional credit is removed, the charge in question will be re-posted to your account and youll be responsible for repayment. If the charge is found to be unauthorized, the temporary credit will be made permanent. '' located at : https : //nfcucloud.custhelp.com/app/answers/list/st/5/kw/fraud/page/1 Navy Federal NEVER XXXXssued a credit to me, there was never any need for one because the transactions involved a separate account that was fraudulently opened in my name. In fact they failed to inform me prior to removing {$1300.00} from my account that they were even investigating those transfers out of the fraudulent account. I had XXXX knowledge or forewarning. Let that sink in. This can happen to you, too. Money just disappear from your account because Navy Federal decides to make you pay for someone else 's sins with you not even knowing this was even happening. I had just received my Social Security Disability benefit the day before. They took everything that I had left to live on for the month. It has caused me irreparable harm and has returned me mentally to the tailspin that I had just started to extricate myself from after my husband died. 

For a bank to say yes, we protect you, if you report fraudulent activity in a timely manner you will be made whole, and then turn around and tell a customer - as a security supervisor for NFCU just told me on the phone - that this protection does not extend to this type of transaction, it is just plain wrong. They most simply imply that all transactions are covered. Navy Federal is outright lying to their customers in saying they will be protected. It borders on false advertising. And it has dealt a devastating financial blow to me immediately after already having my entire world collapse around me with the sudden death of the love of my life. I will be relentlessly pursuing every possible remedy up to and including a lawsuit if necessary, and speaking about this to anyone who will listen until the day I join my beloved husband in the grave, or justice is finally served in this case, in memory of him.

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