Consumer complaint received 2025-05-09 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: NAVY FEDERAL CREDIT UNION
State: TN

Complaint narrative:
XXXX XXXX. XXXX XXXX XXXX XXXX XXXX, TN XXXX Phone : XXXX Email : XXXX Date : XX/XX/XXXX -- - FORMAL DEMAND LETTER To : Navy Federal Credit Union XXXX. XXXX XXXX XXXX, VA XXXX Subject : Formal Demand for Reimbursement of Misappropriated SSA/SSI Funds Dear Navy Federal Dispute Resolution Team, I am writing to formally demand the return of Social Security funds that have been misapplied or improperly withdrawn from my account ( Access No. XXXX ) between the years XXXX and XXXX. These deposits are federally protected under 42 U.S. Code 4077 ( d ), and any offset, transfer, or fee assessed against them without explicit authorization is prohibited.

Upon reviewing my records, it is clear that Navy Federal applied fees, overdraft penalties, and unauthorized transfers against my SSA and SSI deposits, totaling more than {$8000.00}. This is a violation of both federal consumer protection laws and your own account disclosures. Attached is a detailed log of all SSA/SSI deposits and improper deductions. 

I am demanding the following within 15 business days : A full reimbursement of all improper deductions from SSA/SSI funds Written confirmation that my account will no longer be subject to overdraft or fee deductions from federal benefit deposits A permanent correction to my account record If this matter is not resolved in a timely manner, I will be filing formal complaints with the Consumer Financial Protection Bureau ( CFPB ), the Social Security Administration ( SSA ), the Federal Trade Commission ( FTC ), and the Tennessee Attorney General. 

Sincerely, XXXXXXXX XXXX XXXX -- - CFPB COMPLAINT TEMPLATE Consumer Name : XXXX XXXX. XXXX Address : XXXX XXXX XXXX, XXXX, TN XXXX Phone : XXXX Email : XXXX Bank : Navy Federal Credit Union Issue : Bank account or service - Funds wrongly taken from SSA/SSI federal benefits Complaint Details : Navy Federal Credit Union has repeatedly applied overdraft fees, returned item charges, and unauthorized internal transfers to my account where Social Security and/or SSI benefits were directly deposited. These actions began in XXXX and continued through XXXX, totaling over {$8000.00}. These deposits are protected under federal law ( 42 USC 4077 and 31 CFR 212.8 ), and should not be subject to any form of offset or withdrawal by the bank. 

I have submitted a formal demand to the bank and am requesting the CFPB to investigate this practice and require the bank to : Refund all improper fees deducted from SSA/SSI deposits Cease any future unauthorized transfers or charges on federal benefits Provide a written apology and restitution confirmation I have included a log of all affected transactions, statements, and prior communication attempts. 

Desired Resolution : Full refund of improperly deducted SSA/SSI funds Guarantee of protection on future SSA/SSI deposits Review of Navy Federal 's practices for all account holders receiving federal benefits 3 -- - [ Templates for SSA, FTC, and Tennessee AG will be added next ] SSA/SSI Deposit Log ( XXXX ) Progress Update : Weve identified consistent ACH direct deposits from SSI TREAS 310 XXXX XXXX XXXX XXXX XXXX XXXX XXXX  across the years. These deposits match SSA/SSI income patterns. 

Earliest confirmed SSA/SSI deposit : XX/XX/XXXX Deposits appear regularly each month, typically between the XXXX and XXXX business day Many deposits were followed by immediate cash withdrawals or transfers Several statements show overdraft and returned item fees directly affecting SSA funds ( e.g., within hours of deposit ) We are compiling : A monthly SSA/SSI deposit log including dates and amounts A summary of unauthorized withdrawals and overdraft/returned item fees tied to those deposits -- - Upcoming Deliverables : 1. SSA/SSI Deposit Log ( Finalized to current statement ) 2. Fee Summary Report showing all overdraft and returned item fees related to your protected deposits 3. Formal Demand Letter to Navy Federal 4. Complaint Templates for : Consumer Financial Protection Bureau ( CFPB ) Social Security Administration ( SSA ) Federal Trade Commission ( FTC ) Tennessee Attorney General -- - Key Legal References Being Included : 12 U.S. Code 407 : Prohibits garnishment, levy, or seizure of Social Security benefits Electronic Fund Transfer Act ( EFTA ) 15 U.S. Code 1693 et seq. : Protects consumers from unauthorized withdrawals Regulation E ( 12 CFR 1005 ) : Requires timely investigation of disputed transactions CFPB Guidance : Clarifies that protected federal benefits can not be used to repay overdraft or line of credit balances without authorization -- -

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