Consumer complaint received 2023-03-21
Company: NAVY FEDERAL CREDIT UNION
State: CA
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
I enlisted in XXXX at XXXX y.o. and am now a proud retired XXXX XXXX XXXX XXXX having served 20+ years of honorable service to this United States of America XXXX appointed as an officer by the Honorable XXXX XXXX and XXXX by the Honorable Barrack Obama XXXX I joined Navy Federal Credit Union ( NFCU ) at XXXX y.o. in XXXX XXXX, XXXX, which at that time members were only allowed to join Navy Federal Credit Union while serving XXXX. Since then, I have personally witnessed a decline in service member concern as well as an increase in predatory practices from this organization. 
After experiencing hardships as a retired member and a failed business due to the COVID pandemic, I attempted to obtain a refinance of my mortgage, serviced at Navy Federal Credit Union, from Navy Federal Credit Union to restructure my obligations but was denied without reason although I had a 700+ credit score. Ultimately, I begrudgingly made the decision to file for XXXX XXXX bankruptcy to protect my home and vehicle, and I have been micro- harassed by Navy Federal Credit Union since I notified them of the filing, to include 1 ) refusal to provide me basic information verbally, 2 ) disruption of my online account information access forcing me to call them to then receive no or unclear information, 3 ) refusal to close checking accounts upon my request, 4 ) refusal to close savings accounts upon my request, 5 ) allowance of predatory merchant charges and then 6 ) adding overdraw fees on top of the fraudulent merchant charges, 7 ) reopening and 8 ) closing defunct accounts outside of my knowledge that were in the name of an inactive business and 9 ) repeated this for a joint account in my childs name to shift deposits around ; and 10 ) removing deposits from active accounts and applying them where they wish. 
Most recently Navy Federal Credit Union entered into a Deferral Payment agreement with me on my VA backed mortgage loan to allow me a few months to recover as a COVID relief measure. We signed an agreement to end the plan and resume payments as previously scheduled. I made XXXX mortgage payments in the branch office, then decided to place the mortgage on an allotment directly from my XXXX monthly XXXX check. Since then, over the course of 5 months my mortgage payments have been documented to have been delivered by the XXXX to Navy Federal Credit Union to the account number of the mortgage, but NONE have been applied to the mortgage as requested with my electronic request per the XXXX. Navy Federal Credit Union will not share specific mortgage information with me nor can I access specific information online. The only information I am able to attain is that the last mortgage payment received was FIVE months ago and Ive received mixed messages that my home is now in foreclosure although I have FIVE documented deposits of whole mortgage payments ( Principle, Interest and Escrow ) to Navy Federal Credit Union via allotments. 
Details are as follows : In XX/XX/XXXX, I was informed by Navy Federal Credit Union that XXXX ( XXXX ) payments ( at that time XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ) were not applied to my mortgage and after many circular discussions that I had 1 ) submitted the electronically scheduled allotments for my mortgage payments to the wrong account number, therefore they were unable to be located in their system and were either not processed or never received ; then 2 ) that I had attempted to pay my mortgage through the allotment method and they did not accept such payments for mortgages via allotments. Subsequently, I was told the same for my XX/XX/XXXX allotment transaction that was successfully processed via XXXX to Navy Federal Credit Union ; the payment could not be found in their system. Ultimately, in XX/XX/XXXX Navy Federal admitted to have erected a defunct business account attached to an inactive sole proprietor business account and had placed two of the allotment distributions in that account. They immediately closed the account and sent me a cashier check for the ending balance for the closed the account, instructing me to visit the bank and submit the payment in the bank upon receipt of the funds. I attempted to do so, but the branch would NOT accept the payment. I was notified that day, the last payment received and documented was a mortgage payment made in XX/XX/XXXX that was made in the branch office. At that time 2 ( TWO ) other payments submitted via electronic allotment were unaccounted for and the remaining 2 ( TWO ) were then accounted for in the cashier check sent to me and kept in my possession. I was not able to stop the allotment in sufficient time for the XX/XX/XXXX allotment to process to Navy Federal Credit Union, which again they claimed to have not received it however, it appeared in another defunct account which was a joint account attached to my child who discovered the funds while reviewing his accounts online ; I am now in possession of those funds as well. To date, I am in possession of 3 ( THREE ) allotments that was processed to Navy Federal Credit Union to be routed to my mortgage, but were deposited in erected defunct accounts ; an additional 2 ( TWO ) payments are said to never have been received, processed or are misplaced somewhere in their system, however I have documentation of those successfully electronically submitted transactions from XXXX to Navy Federal Credit Union as well. 

Will provide documentation of the following upon request to protect my privacy. 

* Payment deferral agreement with Navy Federal Credit Union XXXX Enclosure 1 ) * DOD Allotment Transactions Initiation ( Enclosure 2 ) * Cashiers check returned to me equating to 2 months of mortgage payments received by Navy Federal Credit Union to be routed to my mortgage using the mortgage account number via allotment through the XXXX system, but was not applied to my mortgage ( Enclosure XXXX ) * Documentation of dormant account holding the XX/XX/XXXX transfer ( which is not my mortgage account and does not belong to me, it was my childs joint account attached to me ). As of TODAY, Navy Federal Credit Union claims they can not find these funds, but I located them in this dormant account and am in possession of the funds. ( Enclosure 4 ) * Copies of the allotment deposits posted by XXXX for XX/XX/XXXX ( Enclosure 5 ), XX/XX/XXXX ( Enclosure 6 ), XX/XX/XXXX ( Enclosure 7 ), XX/XX/XXXX ( Enclosure 8 ). ( XX/XX/XXXX documentation is pending processing in the XXXX online system ) Equating to approximately {$12000.00} of unapplied payments. 

Lastly, Navy Federal Credit Union will not send me a copy of my payment history or provide regular mortgage account activity when I contact them due to me filing a XXXX XXXX bankruptcy.

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