Consumer complaint received 2020-01-09
Company: NAVY FEDERAL CREDIT UNION
State: GA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
Continuance of Complaint number XXXX I originally filed complaint due to a car loan being denied. It also brought to light problems of a credit card being in closed status. 

Navy Federal Response XX/XX/XXXX : Thank you for your inquiry. Navy Federal received notification of your Chapter XXXX bankruptcy filing and, as such, all active lines of credit were closed. Upon bankruptcy dismissal notification, your account was updated and your are now eligible to apply for all lending products. For any further questions, please call Navy Federal Lending, at XXXX. 


Your Message XX/XX/XXXX : I applied for a vehicle loan today and was told I was ineligible for a vehicle loan due to a revoked credit card. I asked which credit card and a representative stated it was the Visa card issued by NFCU, that I have had no missed payments on. 

I would like to ask the specific reason my card was closed. 

Very Respectfully, XXXX XXXX XXXX I sent a e-message to the bank which it states it will respond in 2 business day : Subject : Account Closure Your Message XX/XX/XXXX : To Whom It May Concern- In reference to the active credit lines were closed, I would like to have further clarification. I notified Navy Federal of the Chapter XXXX due to forclosure and was with the intent to dismiss due to waiting of second property to complete sale, which it took me only 1 week to pay the creditor. I had contacted the Credit Card issuing section, I was told my accounts would be frozen and not closed. I was first contacted by the credit granting section on the XX/XX/XXXX. I stated to the section I had not listed NFCU as a group requesting relief from. The reason was due to damages on both properties in Missouri and Georgia and no renters for a substantial period of time. I further confirmed the house in Missouri was in its final stages of sale and the only creditor would be paid and court proceedings would be dimissed. The manager of the section at the time stated my account would be placed in a freeze status and to let the section know of when the creditor was paid. I notified the section on the XX/XX/XXXX, which even during the time of the proceedings I still paid all debts on time. I was further told by the section manager that once the dismissal was finalized NFCU, would 1 ) reinstate my automatic payments and my credit card would be unfrozen. On XXXX XX/XX/XXXX, I contacted the section manager again and sent the documentation of the dismissal. I was told at that time with the information sent by the courts would be put into file and my accounts would be returned for the following payments on my vehicle loan and my account would be unfrozen. I even followed up the following week and told I was good and no problems. I have since also paid off my vehicle loan and also paid my credit card down but nothing that would exceed more the 15 days. I have received 3 different explinations from your offices, first the grantors discontinued my credit for other reasons and not due to dismissal, the account was closed on the XX/XX/XXXX, and dont have to be told credit was ended. I find it odd during the 30 days when I contacted each time I was not told of a closure of an account and was told only frozen and was told on the XX/XX/XXXX would be unfrozen if the account was closed on the XX/XX/XXXX. Plus due to the fact of when I applied for the loan that the bank said there was a chapter XXXX filed and under process. So what was the official updated time of the dismissal notification and I would ask the bank to produce the documents that were faxed back at the end of XX/XX/XXXX. Especially I would assume that the bank would have to maintain the paperwork for two years. This way there is complete clarity and can forward any new addendums of information pertaining to my open CPFB complaint. 

XXXX XXXX I conducted a follow up with the CREDIT CARD section XX/XX/XXXX. 

Per first complaint it was due to a loan bring to light that I have a closed credit card account with navy federal, which I was never notified of and had talked to NFCU on more than one occassion that the account was frozen and upon dismissal would be unfrozen. I was told now yes the account was closed due to bankruptcy and not renewal, which was dismissed and when talking to the credit card section at the time of the bankruptcy. Which the section stated I still had an active bankruptcy on file. Which was dismissed on XXXX XX/XX/XXXX. 

The first individual I spoke to was XXXX in reference to the credit card. I requested information pertaining to my bankruptcy and she was stated it was being looked into and she would talk to bankruptcy. 

Per our conversation she stated to me that the reason the credit card was closed per the bankruptcy because of no letter of affirmnation of the debt and why account was closed, which I was never told. Plus it would have to have been signed to confirm the debt if in Chapter XXXX, never happened. 

( When contacting on the XX/XX/XXXX stated the information was showing bankruptcy and not dismissed at the time and had to fix information ). 

I requested to talk to the LOAN DEPARTMENT : I talked to XXXX in the department and asked since the information was not updated in the system and unfactual about removing the hard inquiry. She stated the information had been updated XX/XX/XXXX, which the Credit Card Department was not aware of and didnt know the Chapter XXXX had been dismissed. It also seems the Credit Card section does not have my Fax transmittal of formal dismissal. 

I requested to talk to BANKRUPTCY department : I talked to an indvidual by the name of XXXX. She stated that it was NFCU policy of filing of the bankruptcy that the account is automatically disclosed. The account was closed due to bankruptcy and stated did I talk with the bankruptcy department at the time of the filing. She further stated even if I did a letter of affirmation, that the account would be closed and could still pay on the account. When asking for a letter of the information, she stated she would have to see if it could be released and further forwarded me to the start menu. I also subsequently did not get a call back either in reference to this portion of the conversation. 

So either the bank does not know its own policies, does not forward or retain any information of faxed transmittals, and or talk to each department. 

In the process of each of these actions the bank has closed one account which dropped dropped my revolving credit to negative XXXX, this reporting which has effected my credit score and subsequently made it impossible to get a loan from any other banks since in a closed status and showing a balance, and it cost me to use my own personal funds from my retirement account to purchase a vehicle with a surchage of 20 % in taxes.

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