Consumer complaint received 2016-03-03
Company: NAVY FEDERAL CREDIT UNION
State: AE
Product: Credit card
Issue: Credit card protection / Debt protection

Complaint:
Hello, My name is XXXX XXXX and I 'm writing in reference to my Navy Federal Credit Union Visa Card. I contacted NFCU more than one month ago, on XXXX XXXX, XXXX about an erroneous reoccurring charge of {$37.00} to my account for a " Payment Protection Plan ''. The charges are from XX/XX/XXXX-XX/XX/XXXX. I discovered that I was wrongly charged for services I NEVER knowingly agreed to. NFCU 's position is, " I must 've voluntarily opted for the coverage '', I deny that. I applied for this card via online/and confirmed by cell phone from XXXX. This same tactic is a huge moneymaking scheme of large banks and credit card companies, and has resulted in many class action lawsuits. According to XXXX, " If you have a credit card, you 've probably heard the pitch. It comes from a telemarketer, or perhaps from a mailer included with your statement, and warns, " life is unpredictable. '' Prepare for the worst, the pitch goes on to say, by purchasing a plan that will handle your credit card debt if you lose your job, become XXXX or die. 
What it wo n't tell you is that for years, card issuers have been making fat profits off these payment protection programs while complaints from consumers and activists have piled up. But now, a slew of lawsuits and a federal investigation have put the plans themselves on an unpredictable course. '' According NFCU, " Documentation was provided with the card when it was approved in XXXX of XXXX that outlined the program, detailing the 60 days you have to cancel the service with a full refund. '' But, I 'm XXXX XXXX XXXX XXXX, XXXX at XXXX, XXXX, XXXX. The mail delivery here can be and often is, notoriously slow. It 's documented that mail delivered to XXXX addresses can routinely take up to 60 days for delivery, which would already put me outside of the 60 day-full-refund window. I have never opted for a payment protection plan on any products I 've purchased or financed via NFCU. This coverage is a one-sided payday for NFCU. As a 16 year XXXX Vet, there 's absolutely no benefit for me to have this protection. Given the length of my military service, if I were suddenly unemployed or sick, I 'd receive VA XXXX pay at minimum, plus an XXXX XXXX pension or a large severance payment. Why would n't I be able to cover a minimum payment on a credit card? Furthermore, why would n't I want the same piece of mind for the car note on my brand new XXXX Lexus vehicle, which I financed via NFCU for {$45000.00} to the tune of {$650.00} per month? Why not the same for the {$15000.00} Chrysler 300C that I financed with NFCU around XX/XX/XXXX or the personal loan I financed with them after that? It 's just not logical because it 's not true. I 'm being penalized because I foolishly did n't check my statements, unwittingly giving license for them to steal more than {$1700.00}, by my calculations, for a service I did n't want and had no use for. 
This is n't an isolated situation and apparently happens to many more hard working Americans, not specifically at the hands of NFCU. Again, according to XXXX, " credit card companies have billed cardholders billions for payment protection and other products that they did n't request or that did n't provide the promised benefits.The lawsuits claim there is no easy way for customers to ask questions, file a claim or cancel the product. '' I 've purchased approximately {$100000.00} in financial products, car loans, personal loans and services since becoming a member in XX/XX/XXXX. I recently paid off my NFCU VISA card w/XXXX of my hard earned money in a lump sum. I pay what I owe. They 've taken food from my daunter 's mouths, I feel violated. They have enormous financial assets and should n't prey upon hard working Americans, especially those in uniform. Without us, they cease to exist. I humbly ask for exception to policy and a full refund of approx {$1700.00}

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