Consumer complaint received 2015-05-14
Company: NAVY FEDERAL CREDIT UNION
State: DC
Product: Consumer Loan
Sub-product: Vehicle loan
Issue: Taking out the loan or lease

Complaint:
In late XXXX 2015, Navy Federal Credit Union ( NFCU ) flagged my account. I was told the reason this was done was because my original car loan had expired even though I still had a balance. ( NFCU ) proceeded to then tell me that it was a good thing that I called when I did because I only had 5 more days before I would be charged interest daily. I was then told I had XXXX of XXXX options, I could pay the full amount today or I could agree to pay the remaining balance over an agreed monthly plan, with virtually no interest. I was then told by collections that I would just be paying what I currently owe. I would just be agreeing to do a monthly payment term. In agreement with the terms, collections then said that my monthly payments would be {$59.00} for 71 months after the initial payment of {$59.00}. I immediately stated that I do n't need 72 months to pay off the balance. The representative then told me that my supervisor did this just in case to give me more flexibility financially. She then stated that I was welcome however to pay the loan completely off early if I desired to. I was then asked if I wanted the payment protection plan and I replied no. As I ended the call, I was told that my first payment would n't be until XXXX XXXX. Also, to sign my promissory notice and return it as soon as possible. So know, towards the end of XXXX when I received the promissory notice. I called ( NFCU ) again because the promissory notice contained the payment protection plan that I specifically said I did not want. They confirmed they had made a mistake and that it would be corrected. I then stated that I wanted something in writing that supported what we had agreed upon. I was told by the representative that they would be sending me a letter of addendum which would support the original agreement minus the protection from the original promissory notification. Furthermore, that because the protection plan was removed my monthly payment is now {$52.00} instead of {$59.00}. This would also be validated by the letter of addendum. On XXXX XXXX, 2015 I made my first payment of {$52.00} to Navy Federal Credit union. I also inquired about my addendum letter and I was informed that it was mailed on XXXX XXXX. It arrived around XXXX XXXX. Well on Monday XXXX XXXX, 2015 I received in the mail a new updated promissory note from ( NFCU ) changing my remaining balance from {$3700.00} to {$5700.00}. This prompted me to call once again to speak with collections the same day around XXXX that evening. Upon talking with the Supervisor on duty that evening, I was told that the reason I was sent the updated promissory note was because that was the right XXXX. He proceeded to tell me that the initial promissory not was invalid because the APR annual percentage rate of XXXX was wrong. They do n't give out those type of APR 's for this type of loan. I asked how is it that I received this rate if indeed I have it in writing. Furthermore, I have a letter of addendum that validates it. He said to me, we made an error and therefore we have to give you a new rate of 14.900 % equaling {$2000.00}. I called again on the XXXX of XXXX spoke with XXXX XXXX XXXX ID XXXX, who initially said I see what the problem is and then told me to hold on. When she came back to the phone said, " Oh you talked to a supervisor yesterday who told you we made a mistake so therefore we ca n't honor this agreement unless you accept another APR ''. The loan officer I spoke with on the XXXX prior to speaking with XXXX said that they are supposed to honor the initial agreement - end of story. I have constantly asked them to pull the tapes, in response they said that does n't matter - they would not honor it. They have already unlawfully change the information regarding my loan, as well as doctored the details of the original promissory note. I have not agreed to new terms - I expect you to abide by your written agreement.

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