Consumer complaint received 2024-05-15
Product: Money transfer, virtual currency, or money service — Money order, traveler's check or cashier's check
Issue: Unexpected or other fees — 
Company: NAVY FEDERAL CREDIT UNION (OH)

I am writing to formally address a significant concern that arose from a recent interaction with one of your supervisory staff regarding the handling of a U.S. Treasury check, which I deposited into my account on XX/XX/2024. The check, totaling {$30000.00}, was subjected to an extended hold, with {$29000.00} of the funds delayeda situation communicated through a notification sent several hours post-deposit, not at the time of deposit as required by federal law ( 12 CFR 229.13 ( g ) ). 

After discussing this matter with my attorney regarding the unjustified delay on a government-issued check, I contacted NFCU customer support for clarification. During my conversation with a supervisor on XX/XX/2024, I was surprised to hear the statement that Navy Federal Credit Union does not follow federal regulations. This statement is deeply concerning, given the credit union 's obligations under federal law, specifically under Regulation CC ( Expedited Funds Availability Act ).

As a longstanding member of NFCU, these issues are particularly disconcerting.

1. Regulation Compliance : Regulation CC mandates that the first {$5000.00} of a government check be made available by the next business day. The remainder can be held longer, but the rationale must be clearly justified under specific conditions that should be transparent to the customer. ( 12 CFR 229.10 and 229.13 ) 2. Notification and Explanation : The notification of the hold stated that the delay was due to " confidential information '' suggesting the check may not be paid. Given the source of the check ( U.S. Treasury ), the assertion that it might be uncollectible needs substantial justification. Unfortunately, both representatives and the supervisor were unable to provide any reasonable explanation for placing a hold on a U.S. government issued check.

3. Statement on Regulatory Compliance : The claim by the supervisor that Navy Federal does not follow federal regulations is alarming and contradicts the foundational compliance requirements expected of all federally insured financial institutions. 
4. 4. I request a detailed explanation regarding the statement about non-adherence to federal regulations as mentioned by the supervisor in accordance with applicable federal regulation.

5. I seek clarification on the specific reasons and the so-called " confidential information '' used to justify the extended hold on a U.S. Treasury check .

6. Please provide a written response confirming Navy Federal 's policies and practices concerning compliance with Regulation CC and other applicable federal regulations.

7. I urge you to release the held funds in compliance with federal regulation, as outlined under Regulation CC.

Given the nature of this issue and its potential implications, I expect a prompt and comprehensive response. I am prepared to take further actions, including filing complaints with regulatory bodies such as the Consumer Financial Protection Bureau ( CFPB ) and the National Credit Union Administration ( NCUA ), if this matter is not resolved satisfactorily.

Thank you for your attention to this urgent matter. I look forward to your prompt resolution to maintain the trust and integrity of our banking relationship.