Consumer complaint received 2024-07-19
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: NAVY FEDERAL CREDIT UNION (GA)

I knowing and willful misstatement or omission of material facts constitutes a federal criminal violation punishable Under 18 U.S.C. 1001. Additionally, these misstatements are punishable as perjury 18 U.S.C. 1621. I am filing this formal complaint against Navy Federal Credit Union XXXX, XXXX, XXXX, XXXX and XXXX XXXX XXXX. As a federally protected consumer, I hereby dispute any alleged claims you are currently reporting as a consumer debt on my credit report. Under the Fair Credit Reporting Act ( FCRA ) Sections 616 and 617 outline the civil liabilities for willful and negligent noncompliance, respectively, with the requirements of the FCRA. And under 15 U.S.C 1681s-2 Navy Federal Credit Union , a financial institution and furnisher of information, along with XXXX, XXXX, XXXX, XXXX and XXXXXXXX XXXX XXXXXXXX a consumer reporting agency, have willfully failed to comply with federal regulations by misusing my consumer report regarding with the accounts number : XXXX and account number : XXXX and account number : XXXX. 12 CFR 1016 ( Regulation P ) regulates and protects the privacy of consumer financial information. 12 CFR 1016.16 regulates and protects the Fair Credit Reporting Act 15 U.S.C 1681 et seq. 12 CFR 1022 ( Regulation V ) Appendix M regulates and specifies obligations of furnishers of information to consumer reporting agencies under the Fair Credit Reporting Act 15 U.S.C 1681 et seq. 

I, the consumer, have been adversely affected by Navy Federal Credit Union, XXXX, XXXX, XXXX, XXXX and XXXX XXXX XXXX and 15 U.S.C. 1681n being willfully noncompliant with the proceeding federal regulations. 12 CFR 1016.16 regulates 15 U.S. Code 1681 section 602 which states " There is a need to ensure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumers right to privacy. '' My privacy is being violated by the misuse of my consumer report. 15 U.S. Code 1681b section 604 states In general Subject to subsection ( c ), any consumer reporting agency may furnish a consumer report under the following circumstances and no other : ( 2 ) in accordance with the written instructions of the consumer to whom it relates. NAVY FEDERAL CREDIT UNION and 15 U.S.C. 1681b do not have my consent to furnish said information, and I have never given them written or verbal consent. Appendix M regulates 15 U.S.C 1681a ( 2 ) ( A ) ( I ) which states " Except as provided in paragraph ( 3 ), the term consumer report does not include ( i ) report containing information solely as to transactions or experiences between the consumer and the person making the report. 

I have requested in the past for validation from you pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 ( FDCPA ), and a full investigation of the debt with the three credit bureaus : XXXX, XXXX, and XXXX. However, despite my efforts, I never received the report from the " investigation '' conducted by all three credit bureaus. Months have passed since then, and I recently attempted to buy a house as a first-time homebuyer and start a business. I was deeply disappointed and disheartened to discover that I wouldn't be able to realize my dreams of homeownership or entrepreneurship. I've been working tirelessly at two jobs, sacrificing countless nights to save money for my first home and business. Even when I'm sick, I still show up for work because I've promised my family a better life. Now, everything is gone, and I am on the verge of breaking. It has taken me over nine months to find the perfect house to buy and a business to acquire, only to see both opportunities slip away because I did not qualify for a business or a home loan. The loan was denied due to Navy Federal Credit Union reporting the debt as a charge-off and being closed. 

I tried to open a bank account on XX/XX/XXXX, with PENFED Credit Union and was denied. At first, I didnt pay much attention to the denial until I discovered the reason behind it. I am so frustrated with these findings that, at this point. I am prepared to involve the U.S. Securities and Exchange Commission, U.S. Treasury Inspector General, the Secretary of State, and my local Congressman, and promptly forward a formal complaint to the Federal Trade Commission and Attorney General. Since then, I have been so depressed and devastated by the loss of my opportunity to be a first-time homeowner and a business owner that I decided to conduct in-depth research about the laws that protect me as a consumer and to my surprise according to IRS Publication 4681, Chapter 1 regarding canceled debts states that a canceled debt is considered ordinary income, which is taxable. This charge-off is taxable income and not to be included in a consumer report. 15 U.S. Code 1681s-2 states A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. 

Meaning that Navy Federal Credit Union, XXXX, XXXX, XXXX, XXXX and XXXX XXXX XXXX Under 15 U.S.C. 168 are willfully misusing this information on my consumer report. 12 CFR 1022 Appendix M regulates 15 U.S.C. 1681n ( a ) ( 1 ) ( A ) which states. Any person who willfully fails to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of : any actual damages sustained by the consumer as a result of the failure or damages of not less than { {$100.00} } and not more than { {$1000.00} }. Navy Federal Credit Union Under, XXXX, XXXX, XXXX, XXXX and XXXX XXXX XXXX 15 U.S.C. 1681n have been willfully noncompliant by continually misusing my consumer report after I filed a complaint.

12 CFR 1016.7 states, A consumer may exercise the right to opt out at any time. Also, under 15 U.S. Code 6801 - Protection of nonpublic personal information ( a ) Privacy obligation policy it is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers nonpublic personal information. ( b ) Financial institutions safeguards. In furtherance of the policy in subsection ( a ), each agency or authority described in section 6805 ( a ) of this title, other than the Bureau of Consumer Financial Protection, shall establish appropriate standards for the financial institutions subject to their jurisdiction relating to administrative, technical, and physical safeguards ( 1 ) to insure the security and confidentiality of customer records and information ; ( 2 ) to protect against any anticipated threats or hazards to the security or integrity of such records ; and ( 3 ) to protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer. 1016.7 ( a ) ( 2 ) Identify all of the categories of nonpublic personal information that you disclose or reserve the right to disclose, and all of the categories of nonaffiliated third parties to which you disclose the information, as described in 12 CFR 1016.6 ( a ) ( 2 ) and ( 3 ) of this part, and state that the consumer can opt out of the disclosure of that information ; Also, the law says that under the Privacy Act of 1974, codified at 5 U.S.C. 552a, establishes a code of fair information practices that governs the collection, maintenance, use, and dissemination of information about individuals that is maintained in systems of records by federal agencies. 

The Privacy Act provides individuals with several rights regarding their personal information, individuals have the right to request access to records about themselves, and amendment individuals can request corrections or amendments to records that are not accurate, relevant, timely, or complete, by protection against unwarranted invasion. The Act protects individuals against unwarranted invasions of privacy resulting from the collection, maintenance, use, and disclosure of their personal information. The law also says the Under 15 U.S. Code 6802 - Obligations with respect to disclosures of personal information that speak of that financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 6803 of this title. General rule that financial institutions can not disclose nonpublic personal information to third parties without notice and opt-out. Specifically, it outlines the conditions under which a financial institution can provide nonpublic personal information to a nonaffiliated third party without triggering the notice and opt-out requirements.

On The Gramm-Leach-Bliley Act ( GLB Act or GLBA ) is also known as the Financial Modernization Act of 1999. It is a United States federal law that requires financial institutions to explain how they share and protect their customers private information. Under 16 CFR 313.7 regarding opt-out notices under the Gramm-Leach-Bliley Act ( GLBA ) : The opt-out notice must state To be GLBA compliant, financial institutions must communicate to their customers how they share the customers sensitive data, inform customers of their right to opt-out if they prefer that their personal data not be shared with third parties, and apply specific protections to customers private data in accordance with a written information security plan created by the institution. Examples of reasonable opt-out means include. Financial institutions must give consumers a " reasonable opportunity '' to exercise their opt-out right, typically 30 days, before sharing information with nonaffiliated third parties. This opportunity was never given to me. The primary data protection implications of the GLBA are outlined in its Safeguards Rule, with additional privacy and security requirements issued by the FTCs Financial Privacy Rule, created under the GLBA to drive implementation of GLBA requirements. The GLBA is enforced by the FTC, the federal banking agencies, and other federal regulatory authorities, as well as state insurance oversight agencies penalties for Non-Compliance with the GLB Act 's Privacy Requirements for Penalties for Non-Compliance with the GLB Act 's Privacy Requirements for financial institutions that fail to comply with the privacy requirements of the Gramm-Leach-Bliley Act ( GLBA ) face several severe penalties. 

These penalties are designed to enforce the protection of consumer financial information and ensure that institutions adhere to the Act 's provisions. Institutional Fines Financial institutions can be fined up to {$100000.00} for each violation of the GLBA 's privacy and security requirements. By regulatory actions enforcement regulatory agencies, such as the Federal Trade Commission ( FTC ), can take enforcement actions against non-compliant institutions. These actions may include cease and desist orders, Civil Lawsuits, Remediation Costs, Loss of Regulatory Approval, Loss of Business Opportunities, Civil Litigation, Legal Penalties, Loss of Reputation and Trust and other legal proceedings aimed at compelling the institution to rectify its non-compliance and improve its data security practices. 

Here are some of ( Examples of Non-Compliance Cases ) -XXXX  XXXX XXXX ) : Fined for violating both the Federal Trade Act and the GLBA, including privacy and safeguarding rules. 
-XXXX  XXXX Agreed to a settlement ranging between {$570.00} XXXX and {$700.00} XXXX for network security failures. 
-XXXX  : Cited for compromised security affecting nearly 9,000 customer records and mandated to undergo biennial third-party assessments for 10 years. ( A ) Identify all of the categories of nonpublic personal information that you disclose or reserve the right to disclose, and all of the categories of nonaffiliated third parties to which you disclose the information, as described in 1016.6 ( a ) ( 2 ) and ( 3 ) of this part, and state that the consumer can opt out of the disclosure of that information ; The law also says that Under 16 CFR 433.2 is part of the Federal Trade Commission 's regulations on the " Preservation of Consumers ' Claims and Defenses. '' This regulation, also known as the " XXXX XXXX, '' aims to protect consumers in credit transactions. 

What that means is that consumer protection rules ensures that consumers don't lose their legal rights when their credit contracts are sold or transferred to third parties and in preservation of claims it allows consumers to raise the same legal claims and defenses against the new holder of the contract that they could have raised against the original seller. And more types of claims could include issues like breach of warranty, misrepresentation, or fraud by the seller. It also required notice to achieve this purpose, the rule mandates that specific language be included in consumer credit contracts, informing all parties that the holder is subject to all claims and defenses the debtor could assert against the seller. 

15 CFR 433.3 Exemption of sellers taking or receiving open end consumer credit contracts before XX/XX/XXXX, from requirements of 433.2 ( a ). ( a ) Any seller who has taken or received an open-end consumer credit contract before XX/XX/XXXX, shall be exempt from the requirements of 16 CFR part 433 with respect to such contract provided the contract does not cut off consumers claims and defenses. ( b ) Definitions. The following definitions apply to this exemption : ( 1 ) All pertinent definitions contained in 16 CFR 433.1. ( 2 ) Open end consumer credit contract : a consumer credit contract pursuant to which open end credit is extended. ( 3 ) Open end credit : consumer credit extended on an account pursuant to a plan under which a creditor may permit an applicant to make purchases or make loans, from time to time, directly from the creditor or indirectly by use of a credit card, check, or other device, as the plan may provide. 

The term does not include negotiated advances under an open-end real estate mortgage or a letter of credit. XXXX XXXX XXXX XXXX and Navy Federal Credit Union is alleging I owe a debt and is reporting this account incorrectly to the consumer agencies. Any consumer account that is charged off with a balance over a { {$1.00} } is due to the consumer not the credit so is Navy Federal Credit Union stating they are exempt from following federal law as enacted to govern commercial transactions. 1026.11 Treatment of credit balances ; account termination. ( a ) Credit balances. When a credit balance in excess of { {$1.00} } is created on a credit account ( through transmittal of funds to a creditor in excess of the total balance due on an account, through rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for the benefit of the consumer ), the creditor shall : ( 1 ) Credit the amount of the credit balance to the consumer 's account ; ( 2 ) Refund any part of the remaining credit balance within seven business days from receipt of a written request from the consumer ; ( 3 ) Make a good faith effort to refund to the consumer by cash, check, or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than six months. No further action is required if the consumer 's current location is not known to the creditor and can not be traced through the consumer 's last known address or telephone number. ( b ) Account termination. ( 1 ) A creditor shall not terminate an account prior to its expiration date solely because the consumer does not incur a finance charge. ( 2 ) Nothing in paragraph ( b ) ( 1 ) of this section prohibits a creditor from terminating an account that is inactive for three or more consecutive months. An account is inactive for purposes of this paragraph if no credit has been extended ( such as by purchase, cash advance or balance transfer ) and if the account has no outstanding balance. ( c ) Timely settlement of estate debts ( 1 ) General rule. ( i ) Reasonable policies and procedures required. For credit card accounts under an open-end ( not home-secured ) consumer credit plan, card issuers must adopt reasonable written policies and procedures designed to ensure that an administrator of an estate of a deceased accountholder can determine the amount of and pay any balance on the account in a timely manner. ( ii ) Application to joint accounts. Paragraph ( c ) of this section does not apply to the account of a deceased consumer if a joint accountholder remains on the account. ( 2 ) Timely statement of balance ( i ) Requirement. Upon request by the administrator of an estate, a card issuer must provide the administrator with the amount of the balance on a deceased consumer 's account in a timely manner. ( ii ) Safe harbor. For purposes of paragraph ( c ) ( 2 ) ( i ) of this section, providing the amount of the balance on the account within 30 days of receiving the request is deemed to be timely. ( 3 ) Limitations after receipt of request from administrator ( i ) Limitation on fees and increases in annual percentage rates. After receiving a request from the administrator of an estate for the amount of the balance on a deceased consumer 's account, a card issuer must not impose any fees on the account ( such as a late fee, annual fee, or over-the-limit fee ) or increase any annual percentage rate, except as provided by 1026.55 ( b ) ( 2 ). ( ii ) Limitation on trailing or residual interest. 

A card issuer must waive or rebate any additional finance charge due to a periodic interest rate if payment in full of the balance disclosed pursuant to paragraph ( c ) ( 2 ) of this section is received within 30 days after disclosure. I intend to pursue legal action if these issues are not resolved, my attorneys are awaiting your reasonable response. Below are the claims I have submitted to the CFPB : CFPB Claim XXXX Submitted to the CFPB on XXXX Improper use of your report STATUS Sent to company on XX/XX/XXXX We've sent your complaint to the company, and we will let you know when they respond. Their response should include the steps they took, or will take, to address your complaint. Companies generally respond in 15 days. In some cases, the company will let you know their response is in progress and provide a final response in 60 days. On Feedback requested on XX/XX/XXXX A summary of the results are listed below : NON REPORTING DISPUTES Trade : NAVY FEDERAL CREDIT UNION THE DISPUTED ITEM IS NOT CURRENTLY REPORTING ON THE XXXX XXXX FILE Navy Federal never responded to me. On XX/XX/XXXX was closed. 

CFPB claim XXXX Submitted to the CFPB on XX/XX/XXXX Navy Federal Credit Union XXXX Account # XXXX ) credit card be removed from my credit report. I understand that the Fair Credit Reporting Act, which is codified in Title 15 of the United States Code, Sections 1681 to 1681u, requires that credit reporting agencies be impartial and accurate in their reporting of consumer credit information. Company responded STATUS Company responded on XX/XX/XXXX According to our records, some of the disputed information does not appear on your current XXXX credit report. 

CFPB claim XXXX Submitted to the CFPB on XX/XX/XXXX Navy Federal Credit Union XXXX Account # XXXX ) credit card be removed from my credit report. I understand that the Fair Credit Reporting Act, which is codified in Title XXXX of the United States Code, Sections XXXX to XXXX, requires that credit reporting agencies be impartial and accurate in their reporting of consumer credit information. Moreover, the Equal Credit Opportunity Act, which is codified in Title XXXX of the United States Code, Sections XXXX to XXXX, requires that creditors refrain from any discrimination in their credit practices. Given the importance of accuracy and fairness in credit reporting Given the importance of accuracy and fairness in credit reporting. XXXX responded XXXX XXXX responded on XX/XX/XXXX after careful review, we have determined the information submitted in the portal included a dispute of information appearing on your credit report. XXXX has processed your request and forwarded a copy of the XXXX CFPB closed by CFPB on XX/XX/XXXX. CFPB claim XXXX XXXX XXXX XXXX XXXX XXXX and XXXX impact on my ability to open a bank account or obtain any type of credit card. Sent to company on XX/XX/XXXX We've sent your complaint to the company, and we will let you know when they respond. Their response should include the steps they took, or will take, to address your complaint. Companies generally respond in 15 days. In some cases, the company will let you know their response is in progress and provide a final response in 60 days. COMPANY 'S INTERIM RESPONSE was We reviewed the complaint you submitted and sent it to the company for a response. The company responded that you XXXX have been a victim of fraud. Closed by CFPB XX/XX/XXXX CFPB determined that we are not able to take further action on this complaint. CFPB claim XXXX Submitted to the CFPB on XX/XX/XXXX it was about Breach Settlement and again I got the COMPANY 'S INTERIM RESPONSE Unfortunately, at this time, we are unable to process your disputes, as they are not specific. If there is information appearing on a credit profile that is believed to be inaccurate or incomplete, we must have a specific dispute, knowing that I have been dealing with them directly with no remedy. The CFPB closed it on XX/XX/XXXX. 

CFPB claim XXXX Submitted to the CFPB on XX/XX/XXXX XXXX it was about Breach he same outcome, closed by CFPB on XX/XX/XXXX. CFPB claim XXXX Submitted to the CFPB on XX/XX/XXXX request that you delete the charge-off on my credit report relating to a car repossession STATUS Sent to company on XX/XX/XXXX and the Company responded on XX/XX/XXXX ADVERSE ACCOUNTS THAT HAVE NOT BEEN PAID IN FULL WILL AUTOMATICALLY BE DELETED XXXX YEARS FROM THE DATE OF FIRST DELINQUENCY. Trade : NAVY FCU XXXX VERIFIED THAT THIS ITEM BELONGS TO YOU. ADDITIONAL INFORMATION HAS BEEN PROVIDED FROM THE ORIGINAL SOURCE REGARDING THIS ITEM. THE FOLLOWING FIELDS HAVE BEEN MODIFIED : HIGH CREDIT, SCHEDULED PAYMENT, DATE OF LAST PAYMENT, TERM DURATION, ADDITIONAL INFORMATION, ACCOUNT HISTORY Trade : NAVY FCU XXXX VERIFIED THAT THIS ITEM BELONGS TO YOU. ADDITIONAL INFORMATION HAS BEEN PROVIDED FROM THE ORIGINAL SOURCE REGARDING THIS ITEM. THE FOLLOWING FIELDS HAVE BEEN MODIFIED : HIGH CREDIT, ACTUAL PAYMENT, SCHEDULED PAYMENT, TERM DURATION, ADDITIONAL INFORMATION, ACCOUNT HISTORY. By my question is from what ORIGINAL SOURCE because when I ask from XXXX XXXX to send me what the original copy but what I got was a bill of sale and my signature was missing, sound like someone was doing security fraud. Closed by XXXX on XX/XX/XXXX. 

CFPB claim XXXX Submitted to the CFPB on XX/XX/XXXX request that you delete the charge-off on my credit report relating to a car repossession. XXXX responded XXXX XXXX responded on XX/XX/XXXX Closed with explanation. At your request to conduct a reinvestigation, we contacted the data furnisher and asked them to verify the accuracy of the information with which you disagree. They responded and verified that the disputed information was accurate as reported, however, they XXXX have updated other aspects of the account ( XXXX ). The result summary was sent to you for review on XX/XX/XXXX. If you have any additional supporting new documentation regarding the disputed information, you XXXX forward that to XXXX for further review. It was closed by CFPB on XX/XX/XXXX. 

CFPB claim XXXX Submitted to the CFPB on XX/XX/XXXX request that you delete the charge-off on my credit report relating to a car repossession Sent to company on XX/XX/XXXX the Company responded there XXXX be potential fraud involved on XX/XX/XXXX CFPB closed on XX/XX/XXXX.