Consumer complaint received 2017-02-15
Product: Consumer Loan — Vehicle loan
Issue: Taking out the loan or lease — 
Company: NAVY FEDERAL CREDIT UNION (SC)

My husband purchased a vehicle from Navy Federal Credit Union at the middle to early end of XXXX 2016. When we went into the XXXX branch to inquire about the loan process we were very clear that my name was not to be put on the loan. She said that would not be a problem but they attach all loans to checking or savings accounts and since our accounts were joint my information would need to be updated as well in case he didnt qualify on his own. not a problem. We went to the dealership and my husband bought the car. he qualified for it on his own so I did not need to be added to the loan. My husband crashed and totaled his car on XXXX XXXX, XXXX he was arrested at the time of the crash. I contacted our insurance company who contacted Navy Federal in regard to the car being totaled and taking care of it through the insurance. My insurance company called me back stating that Navy Federal would not allow XXXX to handle the totaled car on my behalf because my name is not on the loan, title, or on the signed promissary note for the loan. i then called Navy Federal myself and was told the same thing, my husband would have to do. being that he was in jail he did not. On XXXX XXXX, 2016 My husband passed away. I contacted Navy Federal early XXXX to find out what I needed to do and was again informed that I was not on the loan, title, or signed the pomissary note so the only way they would deal with the insurance company is if I got an executor of estate. My lawyer ( assigned to me by the military to handle my hasbands affairs ) told me not to pay on this loan because my name was not on it and he sent them out letters in regard to this. Navy Federal contacted me periodically saying they would not allow geico to make payment on the car unless I agreed to sign a promissary note taking responsibility for the car. I ws advised not to do this and to continue with the executor of estate. In XXXX 2016 Navy Federal told me that My name has been added to my husbands car loan, still not on the title, but my husband no longer has a promissary note with them and that the check both y husband and i signed which was used when we purchased the car was now going to be the promissary note which puts me on the loan because I signed it. The only reason I signed the check was because the XXXX branch manager told me they only link loans to a checking account and since it was in both my husband and my name I had to sign it as well but as soon as my husband signed the promissary note with them my name would have nothing to do with the loan. I was advised by the lawyer to withdraw and close my accounts with Navy Federal which I did in XXXX. They closed the accounts but somehow reopened my savings, somehow funds that never should have been put in the savings, because it was closed, appeared and Navy Federal has been taking the funds from my account and applying them to my husbands loan. Also in late XXXX befroe the the accounts were closed, I stopped automatic payments on his car and mine, but in XXXX they automtically took funds for his car from my account. Even if we were to pretend that this signed check makes me liable for my husbands car, the back of the check clearly states that by signing we agree to enroll in XXXX, and their protection plan where in case of loss of life the loan will be forgiven. They are not willing to honor those XXXX parts of this signed check merely just me signing it. XXXX weeks ago I was speaking with Navy Federal and was informed that when I have been making payments on my loan they have been applyig a portion to my husbands loan because it has not been paid on. That is no longer visable online though. today, I called them becasue my car is showing as delinquent, and was informed that they were reopening my savings account, I didnt not give them permission to do this.