Consumer complaint received 2024-08-28 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
Dear CFPB this Complaint is in regard to Navy Federals continue Unfair, Deceptive acts and practices. I was denied a consumer credit transaction Navy Federal is in violation of 16 CFR 433.1 they are not exempt because of 16 CFR 433.3. I am a consumer according to 15 usc 1692E and Navy Federal is in violation of the trust and lending act. Credit is a right that is granted to me. Navy Federal has denied me that right. In addition Navy Federal asked for a co-signed on said loan. According to 16 CFR 444.1 A Cosigner is natural person who renders himself or herself liable for the obligation of another person without compensation. The term shall include any person whose signature is requested as a condition to granting credit to another person, or as a condition for forbearance on collection of another person 's obligation that is in default. The term shall not include a spouse whose signature is required on a credit obligation to perfect a security interest pursuant to State law. A person who does not receive goods, services, or money in return for a credit obligation does not receive compensation within the meaning of this definition. A person is a cosigner within the meaning of this definition whether or not he or she is designated as such on a credit obligation. My cosigner and I tender Navy Federal an instrument ( securities ) to secure said loan. Instead Navy Federal took the instrument and added it their balance sheet as Financial asset and has not given an value to the transaction. According to Navy Federals Sec filings the following can be read : The Company clears transactions on behalf of customers on a fully disclosed basis with a clearing broker-dealer, and promptly transmits all customer funds and securities to the clearing broker-dealer. The Companys other business activities are limited to effecting securities transactions via direct business where the funds are payable to the issuer or its agent and not to the Company. Cash and cash equivalents Cash and cash equivalents consist of demand deposits and money market accounts with financial institutions as well as short-term investments with stated maturities of three months or less. Cash equivalents are promissory notes. According to 18 usc 8 The term obligation or other security of the United States includes all bonds, certificates of indebtedness, national bank currency , Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps. If Navy Federal chooses not to comply I will be forwarding a more extensive complaint to the OCC and SEC.

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