Consumer complaint received 2024-07-04
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem with paying off the loan
Company: NAVY FEDERAL CREDIT UNION (FL)

On or about the following dates : XXXX - I purchased a new car at XXXX and financed it with them. 
XXXX - I took out a new car loan with NFCU for {$13000.00}. Due to the closure of XXXX for XXXX, NFCU had me sign a Power of Attorney to assign them as the new lien holder. 
XXXX - Not clear on the exact date but I contacted NFCU as after paying for almost XXXX years, I noticed my interest rate had increased. I was told that due to a paper title being delivered to me, the loan had been changed to a non-collateral rate, but that once I provided them with the title or assigned them as the lien holder, the rate would be retroactively reversed and the higher rate charged would be reimbursed in full. As I was in XXXX  caring for my mother XXXX XXXXXXXX, I advised I would submit the title upon returning home as I wished to avoid the XXXX fee of {$75.00} for this process. 
XXXX - I moved from my address of XXXX  years in XXXX due XXXX XXXX XXXX and obtained a XXXX address for forwarding all my mail due to stalking and threats. 
XXXX - I delivered the paper title to NFCU in XXXX ; receipt was later confirmed. 
XXXX - I contacted NFCU in XXXX to advise rate had still not been changed. I was told it was because they were still not assigned as a lien holder. They stated that they would still adjust the current rate once assigned, but refused to reimburse me for interest since XXXX. I asked to speak to management and was told I needed to call back during their regular business hours. 
XXXX - I received a letter from NFCU containing a Payable on Death form and a Power of Attorney for Collateral. The letter stated that if I had the POA notarized within 90 days, they would retroactively reinstate my original interest rate and would reimburse me the full amount of increased interest paid. 
XXXX - I went into the local NFCU branch in XXXX and they notarized the Power of Attorney for Collateral for me. 
XXXX - I contacted NFCU again as the interest rate had not yet been changed. I was advised that I had provided them with the " wrong form ''. 
XXXX - I went into the NFCU branch XXXX XXXX XXXX and requested to speak with a bank official so that I could sign the 'right ' form and confirm the reimbursement of my interest. I was informed that the letter I had just received in XXXX was dated " XX/XX/XXXX '' ( which it somehow was!! ) and that they did Not intend to reimburse me for the increased interest paid. They also informed me that sent out a new letter and new form. 
XXXX - I received the new letter from NFCU dated XX/XX/XXXX labeled as " Request - First '' which included an Application for Notice of Lien. It also informed me that my interest rate MAY be converted to the prevailing rate for unsecured loans IF I did not comply within 90 days. 
XXXX - I called NFCU to confirm my interest rate had increased from the original 2.29 % to 15.29 % on XX/XX/XXXX. 
XXXX - I went into the same NFCU branch in XXXX XXXX again and was told by the same bank official that the language on their letters addressing the interest rate was simply 'standard ', and that they had probably sent me the letter I received in XXXX to inform me of what they had already delivered to me on XX/XX/XXXX. I informed her that it was impossible that the letter was mailed to me then as I did not even live at that address until XX/XX/XXXX. She said there was nothing she could do at a branch level but that their loan department had told her when I visited the first time that they were Not going to return interest on a XXXX loan. 
XXXX - I called the NFCU Loan Dept to request a copy of the original letter sent to me on " XX/XX/XXXX '', as well as any other written documentation that referenced my loan. I also made an appointment to speak with an attorney regarding this issue. 
XXXX - I received another letter from NFCU labeled as " Request - Second '' with the same Application for Notice of Lien enclosed and the same language that my interest rate MAY be converted to the prevailing rate for unsecured loans, however, this time it stated I need to comply within 60 days. 
XXXX - I received a thick envelope filled only with previous statements and no other documents. I also had my appointment with an attorney with XXXX XXXX XXXX. She agreed that I should seek remedy and referred me to your organization as well as XXXX to potentially find an attorney who may work on a contingency basis. I am unable to hire an attorney as I only receive {$1100.00} per month in Social Security XXXX. Any assistance is greatly appreciated. In addition to receiving reimbursement for the increased interest rate as promised, I am very concerned for all consumers that NFCU is using predatory methods to gain from higher interest rates. I can attach all related documents.