Consumer complaint received 2025-11-02 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem with paying off the loan
Company: NAVY FEDERAL CREDIT UNION
State: MD

Complaint narrative:
Subject : Pattern of Auto Loan Fraud and XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, and Protect Borrowers Summary of Complaint In XX/XX/year>, I obtained an auto loan in the amount of {$35000.00} through Navy Federal Credit Union ( NFCU ) to purchase a vehicle arranged by XXXX XXXX, who presented himself as a legitimate auto dealer or broker. XXXX XXXX released the full loan proceeds directly to XXXX or an associated business without verifying vehicle ownership, title, or a valid bill of sale documentation typically required by responsible financial institutions before funding an auto loan. 

I never received the vehicle title, registration, or any proof of ownership. When I reported the issue, Navy Federal refused to open an internal investigation, halt payments, or provide proof of where the loan funds were deposited. Representatives from Navy Federal confirmed they do not possess documentation identifying the payee or account where the check was deposited. 

A civil lawsuit is currently pending in XXXX  XXXX XXXX against XXXX XXXX and his related entities, with trial scheduled for January 1314, 2026. Despite being notified of the fraud, Navy Federal has failed to assist or cooperate, even as multiple victims have come forward with identical experiences. 
Pattern Involving a Second Victim Another Navy Federal member was also defrauded under almost identical circumstances by the same individual, XXXX XXXX. In his case, Navy Federal also disbursed auto loan funds without securing a title or verifying the sale, resulting in the borrower never receiving the vehicle. When he reported the fraud, Navy Federal similarly refused to investigate and later converted his auto loan to a personal loan due to the absence of title documentation. 

His case has been ongoing in the Maryland court system for more than three years with no assistance from Navy Federal. Both of our cases clearly reveal a pattern of systemic negligence and lack of consumer protection oversight within Navy Federals auto-lending operations. 
Private Investigator Findings Private investigators retained in these matters have confirmed that XXXX XXXX continues to reside in XXXX, despite previous indications that he had relocated. He is deliberately listing an outdated addressa property he no longer ownsas his legal residence on public records to evade lawful service of subpoenas and court documents. This behavior has obstructed multiple fraud-related cases. Despite these findings, Navy Federal has taken no steps to assist or freeze related accounts, even though the fraud was clearly facilitated through their institution. 
Financial and Emotional Impact This situation has caused severe emotional distress and financial hardship. As a registered nurse, I experienced periods of unemployment and reduced income, during which I struggled to make payments on this fraudulent loan. I was forced to choose between paying Navy Federal for a car I do not have and meeting basic living expenses such as rent, food, and utilities. 

Navy Federal has increased my monthly payment over time despite the fact that the cars title was never issued in my name. Their inaction and continued collection efforts have damaged my credit standing, increased my financial burden, and caused prolonged emotional distress. The lack of accountability from a federally chartered credit union has deeply eroded my trust in the banking system and left me feeling abandoned by the very institution meant to protect its members. 
Legal and Consumer Protection Concerns Navy Federals conduct may violate multiple consumer protection standards, including : 1. Negligent loan disbursement failure to verify vehicle title, ownership, or dealer legitimacy ; 2. Breach of good faith and fair dealing refusal to investigate despite clear notice of fraud ; 3. Unfair, deceptive, or abusive acts or practices ( UDAAP ) under CFPB and NCUA regulations ; and 4. Failure to maintain adequate internal fraud prevention procedures and account verification controls. 
Requested Actions by the CFPB I respectfully request that the Consumer Financial Protection Bureau : 1. Open a formal investigation into Navy Federal Credit Unions auto-loan disbursement and fraud-handling procedures ; 2. Require Navy Federal to produce all documentation related to the loan disbursement, including check copies, internal emails, and records of fraud complaints ; 3. Suspend loan collection and credit reporting related to the affected loans pending investigation ; 4. Coordinate with the Maryland Attorney General, NCUA, and FTC to identify and assist other victims ; and 5. Assess civil penalties or corrective actions if Navy Federal is found to have violated federal consumer protection laws. 

I am prepared to provide full documentation, loan agreements, court filings, and investigator reports upon request.

Declaration I declare that the information provided above is true and accurate to the best of my knowledge. I am submitting this complaint in good faith to seek justice, accountability, and financial relief for the harm caused by Navy Federal Credit Unions negligence and inaction.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief