Consumer complaint received 2025-11-19 00:00:00
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Sued you without properly notifying you of lawsuit
Company: NAVY FEDERAL CREDIT UNION
State: HI

Complaint narrative:
XXXX. ) Overview I am submitting this complaint against Navy Federal Credit Union and its legal counsel, XXXX XXXX XXXX XXXX XXXX, for repeated procedural and regulatory violations arising from debt collection and litigation activity conducted in the State of Hawaii. 
Although Navy Federal Credit Union is a federally chartered credit union under the Federal Credit Union Act ( 12 U.S.C. 1751 et seq. ), its actions and those of its counsel appear to violate federal consumer protection laws and state-level obligations concerning transparency, identity representation, and fair business practices. 

XXXX. ) Background Summary XXXX. First Lawsuit Filed : XXXX XXXX. XXXX ( First XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX Filed XX/XX/year> by Navy Federal Credit Unions counsel, XXXX XXXX XXXX XXXX XXXX XXXX 
Plaintiff relied on outdated contract exhibits and failed to comply with the contractual Notice of Claim clause required before initiating litigation. 
The case was dismissed without prejudice on XX/XX/year> after Plaintiff failed to appear. 
XXXX. Refiling of Lawsuit : Navy Federal Credit Union refiled on XX/XX/year> under a new case number XXXX, abbreviated its name to NFCU , and again failed to provide the pre-litigation Notice of Claim or to disclose the related prior case in the courts docket. 
As of XX/XX/year>, the case remains unserved. 
XXXX. Debt Validation Efforts : I sent a Debt Validation Request via certified mail on XX/XX/year> to Navy Federal Credit Unions Office of General Counsel, referencing the alleged charged-off account. 
Navy Federal Credit Union failed to validate the debt as required by 15 U.S.C. 1692g ( b ) and 15 U.S.C. 1681s-2, instead sending an email improperly redirecting the matter as a credit bureau dispute .

A Final Notice and Continuation Letter was mailed on XX/XX/year>, delivered XX/XX/year>. 
Navy Federal Credit Union later sent a letter dated XX/XX/year>, acknowledging the cease-and-desist portion but ignoring the validation demand. 
4. Credit Reporting and Adverse Action : On XX/XX/year>, my XXXX  credit file was accessed by a lender for a home equity application. 
Navy Federal Credit Unions tradeline remains unvalidated and undisputed, lacking the required account in dispute notation under 15 U.S.C. 1681s-2 ( a ) ( 3 ). 
This omission directly contributed to an adverse credit decision. 
Credit reporting continues without annotation of account being disputed as of XX/XX/year>. 

3. ) Legal and Regulatory Concerns A. Federal Violations 1. Fair Debt Collection Practices Act ( 15 U.S.C. 1692g ( b ) ) Navy Federal Credit Union continued or initiated collection and litigation without providing validation of the alleged debt. 
2. Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ) Failed to conduct a reasonable investigation and update reporting with disputed status after receiving formal notice.

3. Federal Credit Union Act ( 12 U.S.C. 1757 ( 2 ) ) As a federally chartered credit union, Navy Federal Credit Union has the power to sue and be sued. 
However, misidentification of its legal name ( NFCU ) and absence of state registration transparency undermine compliance with this statutory authorization. 
4. Rule 11, Hawaii Rules of Civil Procedure The law firms decision to refile without curing known defects constitutes an abuse of process and frivolous pleading subject to sanctions. 

B. State-Level Violations 1. XXXX  Revised Statutes ( HRS ) 480-2 Unfair or Deceptive Acts or Practices ( UDAP ) : Filing and refiling procedurally defective lawsuits against consumers without verifying contractual or statutory prerequisites constitutes unfair and deceptive conduct. 
2. HRS 443B-3 Collection Agency Licensing : The law firms debt collection activities on behalf of a creditor may trigger licensing requirements ; their status should be verified.

3. HRS 607-14.5 & HRCP Rule 11 : Frivolous filings or abuse of process by attorneys may subject them to attorneys fees and sanctions.

4. Failure to Register or Disclose Entity Identity ( DCCA ) : The XXXX  XXXX XXXX ( XXXX ) database shows no registration for Navy Federal Credit Union or NFCU. 
This lack of disclosure raises questions about its authority to bring legal action in the state under HRCP Rule 9 ( a ) and Rule 17 ( a ) ( real party in interest ).

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