Consumer complaint received 2026-05-13 00:00:00
Product: Money transfer, virtual currency, or money service — International money transfer
Issue: Other transaction problem — 
Company: NAVY FEDERAL CREDIT UNION
State: SC

Complaint narrative:
NOTICE OF DEMAND FOR IMMEDIATE RETURN OF TRUST PROPERTY, CREDITS, AND BENEFICIAL INTERESTS To : Navy Federal Credit Union Mortgage Servicer / Depository Institution / Trustee / Secured Party XXXX XXXX XXXX XXXX XXXX, Virginia XXXX And To : XXXX XXXXXXXX XXXX / Foreclosure Counsel c/o XXXX XXXX XXXX XXXX for Navy Federal Credit Union [ Insert current service address if mailing separately ] From : XXXX XXXX XXXX, XXXX XXXX XXXX / Beneficiary of the XXXX XXXX XXXX XXXX XXXX XXXX XXXX Representative XXXX XXXX XXXX XXXX c/o XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, South Carolina XXXX XXXX : XX/XX/XXXX Subject : Immediate Demand for Return of Credits, Trust Property, Beneficial Interests, Accounting, Set-Off, and Discharge Regarding Navy Federal Credit Union Mortgage XXXX XXXX XXXX XXXX, Loan Date XX/XX/XXXX, Foreclosure XXXX XXXX. XXXX, XXXX XXXX Court XXXX XXXX XXXX XXXX South Carolina COMES NOW the undersigned Grantor, Beneficiary, Trustee, Authorized Representative, and Secured Party, appearing specially and not generally, and hereby places the above-named parties upon formal notice and demand as follows : I. STATEMENT OF FACTS The undersigned executed a promissory note in connection with a mortgage transaction involving Navy Federal Credit Union, Loan No. XXXX, dated XX/XX/XXXX. Said promissory note constituted valuable property, a negotiable financial instrument, and trust res capable of generating credits, deposits, collateral interests, accounting entries, and banking assets. Upon receipt of the promissory note, Navy Federal Credit Union, or its agents, servicers, custodians, trustees, successors, assigns, or related parties, accepted, deposited, monetized, collateralized, transferred, assigned, securitized, or otherwise converted the instrument into banking credits and/or financial assets. Navy Federal Credit Union thereafter established or caused to exist accounts, credits, reserves, collateral positions, bookkeeping entries, or corresponding asset accounts derived directly from the XXXXrantors promissory note and property interests. Navy Federal Credit Union thereafter denied the Grantor and Beneficiary access to the credits, deposits, account entries, and beneficial interests allegedly generated from said promissory note. Navy Federal Credit Union then purported to loan back to the Grantor the very credits, deposits, and financial value alleged to have been derived from the Grantors own instrument and property. Navy Federal Credit Union thereafter transferred, assigned, pledged, sold, hypothecated, or otherwise conveyed beneficial interests and credits without full disclosure, without informed consent, and contrary to the equitable ownership interests asserted by the Beneficiary. The undersigned expressly disputes any presumption that Navy Federal Credit Union became the beneficial owner of the credits, proceeds, accounting entries, or trust property generated from the promissory note transaction. The foreclosure matter is presently identified as Navy Federal Credit Union XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX, Case No. XXXX. The undersigned disputes Navy Federal Credit Unions standing, accounting, authority to enforce, amount claimed due, and any alleged deficiency absent complete production of the original note, all assignments, all payment histories, all credits, all setoffs, all transfers, and all accounting records. II. FACTS AND CONCLUSIONS OF LAW Under the Federal Reserve Act, notes and similar instruments are treated as financial instruments capable of being received, deposited, credited, or transferred through banking channels. The undersigned demands proof of the exact accounting treatment applied to the XX/XX/XXXX promissory note and all related mortgage instruments. The undersigned demands disclosure of whether the note, mortgage, deed of trust, servicing rights, collateral file, or beneficial interests were transferred, pledged, sold, assigned, pooled, collateralized, securitized, hypothecated, or otherwise monetized. Every note may constitute evidence of an obligation and may also constitute property subject to transfer, assignment, pledge, or enforcement. Legally enforceable claims to money, credits, accounts, and identifiable proceeds may constitute protected property interests. A trust relationship exists where one party holds property, proceeds, credits, or benefits for the benefit of another and exercises control over such property. The promissory note constituted property and the resulting credits, if any, constitute proceeds, substitutes, derivatives, and identifiable traceable assets subject to full disclosure and accounting. The withholding, blocking, transferring, encumbering, or denying access to trust property, beneficial credits, account credits, or accounting records may constitute conversion, breach of fiduciary duty, constructive fraud, unjust enrichment, breach of contract, violation of servicing duties, and unlawful restraint of property interests. III. AFFIDAVIT OF SECURITY INTEREST AND SET-OFF DISCHARGE BEFORE ME, the undersigned authority, personally appeared the undersigned Affiant, who after being duly sworn, deposes and states as follows : A. IDENTITY OF AFFIANT I, XXXX XXXX XXXX, acting as XXXX, Fiduciary, Authorized Representative, Executor, Beneficiary, and XXXX XXXX XXXX XXXX. XXXX XXXX, XXXX : XXXX, do hereby swear and affirm under penalty of perjury that the facts set forth herein are true, correct, and based upon personal knowledge, review of trust records, review of mortgage records, and review of the foreclosure filings known to me. B. XXXX XXXX The trust is a duly constituted private trust operating through trust records, trust authority, trust property, and fiduciary administration connected to the XXXX. XXXX XXXX and related estate interests. As Trustee, Fiduciary, Authorized Representative, Executor, Beneficiary, and XXXX XXXX, I possess authority to execute notices, demand accountings, preserve trust assets, perfect security interests where applicable, settle obligations, dispute claims, demand return of property, and act on behalf of the trust and estate in commercial, legal, administrative, and equitable matters. XXXX CREDITOR STATUS AND SECURITY INTEREST On or about XX/XX/XXXX, the trust, estate, Grantor, and/or Beneficiary acquired and/or retained a legal, equitable, beneficial, and/or security interest in the financial obligation involving the following account and/or instrument : Debtor / Obligor Name : XXXX XXXX XXXX / XXXX XXXX XXXX Claimant XXXX Institution : Navy Federal Credit Union Account / Loan No XXXX : XXXX Original Debt Amount : To be verified from the closing disclosure, promissory note, mortgage, and final accounting records Instrument Reference : Promissory Note dated XX/XX/XXXX Foreclosure Case : Navy Federal Credit Union XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX, Case No. XXXX Property / Collateral : Real property subject to the mortgage transaction and foreclosure action in XXXX XXXX, South Carolina The interest was perfected, preserved, asserted, or reserved through the mortgage transaction, security agreement, promissory note, trust records, payment instruments, notices, correspondence, transaction ledgers, UCC-related filings or claims, trust conveyance records, and other lawful commercial or equitable transactions. The undersigned maintains that the promissory note and all credits, proceeds, accounting entries, setoffs, securitization proceeds, collateral proceeds, or financial benefits derived therefrom constitute property interests and trust assets belonging beneficially or equitably to the Grantor, Beneficiary, Trust, or Estate unless Navy Federal Credit Union produces competent evidence proving otherwise. D. DEFAULT, SET-OFF, AND DISCHARGE The subject obligation and associated account have been identified, disputed, or demanded for accounting as follows : ( a ) Alleged mortgage obligation connected to Navy Federal Credit Union XXXX XXXX XXXX XXXX ; ( b ) Promissory note dated XX/XX/XXXX allegedly used, transferred, assigned, pledged, monetized, collateralized, booked, or otherwise treated as an asset ; ( c ) Mortgage transaction now subject to foreclosure in XXXX XXXX XXXX XXXX XXXX XXXX, Case No. XXXX ; ( d ) Credits, proceeds, reserves, setoffs, insurance proceeds, title-related proceeds, escrow entries, collateral accounts, charge-off entries, servicing advances, investor payments, trust account entries, or other financial credits not fully disclosed to the Beneficiary; ( e ) Payment instrument and/or private trust presentment previously submitted and not fully accounted for, honored, returned with explanation, or cured. Accordingly, the undersigned disputes the existence of any remaining unsatisfied obligation absent a full accounting of all credits, payments, proceeds, setoffs, assignments, insurance proceeds, servicing advances, escrow entries, investor credits, monetized value, or other financial benefit generated from or connected to the instrument. XXXX FAILURE OF DISCLOSURE To date, Navy Federal Credit Union and/or its agents, servicers, trustees, foreclosure counsel, custodians, successors, or assigns have failed and/or refused to provide the undersigned with a complete and verified accounting sufficient to determine : All credits generated from the promissory note ; All reserve accounts, collateral positions, bookkeeping entries, and accounting treatment applied to the note ; All transfers, assignments, pledges, sales, securitizations, servicing transfers, or beneficial-interest transfers ; All parties possessing beneficial, secured, custodial, trustee, investor, or servicing interests in the instrument ; All profits, proceeds, assignments, payments, distributions, insurance claims, servicing advances, or investor credits derived from the transaction ; All escrow, HOA, condominium, Master Deed , title, and closing-related disclosures affecting the alleged debt and collateral ; All records showing whether the original note remains in the possession, custody, or control of Navy Federal Credit Union or any party claiming through it . The withholding of such information constitutes concealment of material facts directly affecting the Beneficiarys property rights, equitable interests, defenses, right of redemption, right of recoupment, right of setoff, and ability to challenge standing and amount claimed due. XXXX XXXX GROUNDS This affidavit and demand are made under authority of, including but not limited to : UCC 1-103, 1-202, 1-308, 3-104, 3-301, 3-305, 3-310, 3-603, 9-203, 9-210, 9-607, and 9-601 ; South Carolina Uniform Commercial Code, Title 36 ; South Carolina Trust Code, including S.C. Code Ann. 62-7-1012 and 62-7-1013 where applicable ; RESPA, including 12 U.S.C. 2605, where loan servicing and qualified written request duties apply ; TILA, where disclosure and material transaction information apply ; Federal Rule of Evidence 301 ; Restatement principles governing trusts, fiduciary duties, accounting, and constructive trust remedies ; XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) ; XXXX XXXX XXXX v. XXXX, XXXX XXXX XXXX ( XXXX ) ; XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) ; XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) ; Any other applicable state, federal, equitable, commercial, mortgage-servicing, consumer-protection, trust, and foreclosure-law authority. IV. REBUTTAL OF CONTRARY PRESUMPTIONS Any presumption that : ( a ) Navy Federal Credit Union loaned its own money without receiving value, property, credit, proceeds, collateral, security, or accounting benefit from the promissory note ; ( b ) the Beneficiary surrendered ownership rights in generated credits, proceeds, account entries, or trust property ; ( c ) Navy Federal Credit Union acquired beneficial ownership of all promissory-note proceeds without complete disclosure and informed consent ; ( d ) Navy Federal Credit Union possessed authority to transfer beneficial credits, collateral proceeds, securitization interests, or trust property without authorization ; ( e ) Navy Federal Credit Union has standing to foreclose without proving possession, ownership, authority, accounting, and amount due ; ( f ) Navy Federal Credit Union may proceed in foreclosure without producing a full loan-level accounting and chain of title ; is expressly disputed, rebutted, and denied. The undersigned demands that Navy Federal Credit Union prove each presumption by competent, admissible, verified records and not by conclusory statements, servicer screenshots, or attorney argument. V. DEMAND Accordingly, the undersigned hereby demands : Immediate identification and accounting of all credits, deposits, reserve credits, collateral accounts, securities interests, escrow entries, bookkeeping entries, servicing advances, investor credits, insurance proceeds, title-related credits, and financial assets derived from or connected to the XX/XX/XXXX promissory note. Immediate return, restoration, release, or crediting of all beneficial credits, trust property, estate property, and setoff amounts owed to the XXXX, XXXX, or XXXX. Immediate cessation of all transfers, encumbrances, securitizations, assignments, pledges, foreclosure sales, adverse reporting, or enforcement actions involving the Beneficiarys disputed property interests until a complete accounting is produced. Full accounting of all profits, proceeds, distributions, assignments, monetizations, transfers, servicing advances, investor payments, escrow entries, and setoffs derived from the promissory note transaction. Delivery of all records, ledgers, accounting statements, warehouse receipts, deposit records, trust account records, collateral schedules, loan-level transaction histories, escrow histories, payment histories, servicing records, investor records, assignments, endorsements, allonges, securitization records, and custodian records associated with the transaction. Immediate correction of all accounting records reflecting any alleged debt balance inconsistent with credits, payments, setoffs, proceeds, or value already received from the Beneficiarys instrument. Recognition of all lawful setoffs, discharges, settlements, trust credits, recoupments, and accounting entries associated with the transaction. Written verification of the current holder, owner, servicer, trustee, investor, custodian, and party entitled to enforce the XX/XX/XXXX promissory note. Written verification of whether Navy Federal Credit Union claims to hold the original wet-ink promissory note, and if not, identification of the party in possession. Written confirmation that foreclosure activity in XXXX XXXX. XXXX will be suspended until the demanded accounting and verification are produced. VI. NOTICE OF DEFAULT AND OPPORTUNITY TO CURE Failure to comply within 15 days of receipt of this Notice shall constitute evidence of : failure to cure after notice ; failure to provide accounting ; failure to verify authority to enforce ; failure to rebut the facts stated herein ; breach of fiduciary, servicing, contractual, commercial, or equitable duties where applicable ; conversion or wrongful withholding of disputed property interests ; fraudulent concealment or material nondisclosure where proven ; continuing unlawful restraint upon the Beneficiarys property interests ; and grounds for further administrative, regulatory, equitable, and judicial relief. The undersigned reserves all rights, remedies, claims, offsets, recoupments, equitable interests, liens, security interests, objections, defenses, counterclaims, affirmative defenses, and causes of action without waiver, including all rights reserved under XXXX XXXX. FURTHER AFFIANT SAYETH NAUGHT. By : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX Executor / Beneficiary of the XXXX XXXX XXXX XXXX XXXX XXXX XXXX Representative XXXX. XXXX XXXX c/o XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, South Carolina XXXX XXXX Rights Reserved Without Prejudice UCC XXXX XXXX : XX/XX/XXXXXXXX XXXX

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