Consumer complaint received 2025-09-29 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Closing an account — Funds not received from closed account
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
b'Dear CFPB,\n\nThis is my second formal complaint regarding the restriction of my Navy Federal accounts. My first complaint received only a general response and no resolution. Navy Federals policy stipulates that such matters should be resolved within 15 days; however, it has now been 136 daysnearly five monthssince the restriction was imposed on XXXX XXXX XXXX, and no clear communication or resolution has been provided.\n\nAs of today, Navy Federal continues to hold over $XXXX in my personal account and $XXXX in my business account. This has caused catastrophic personal and professional harm, including the collapse of my business operations, penalties from missed obligations, loss of earnest money on a home purchase, and inability to pay taxes.\n\nBackground\n\nOn XXXX XXXX XXXX, Navy Federal restricted my accounts due to two transactions:\n\nA cashiers check for the purchase of a home with XXXX XXXX.\n\nA transaction for the purchase of a laboratory by my business partners and me.\n\nNavy Federals explanation was that these transactions violated acceptable risk policy. However, Navy Federal was fully aware at account setup that I own and operate a XXXX XXXX XXXX XXXX XXXX XXXX. Furthermore, Navy Federal staff had approved and facilitated large transactions for me in the past.\n\nDocumented Timeline of Events\n\nBelow is a complete and verified chronology of my communications with Navy Federal representatives:\n\XXXX XXXX: Accounts restricted due to large purchases.\n\XXXX (phone): Spoke with Navy Federal; advised accounts were flagged for security regarding source of funds.\n\XXXX (branch visit): Met with XXXX  at XXXX, TX branch; she submitted an appeal with 260 pages of supporting documentation (contracts, invoices, client details, bank details, purchase contracts). Advised that a response would be received in 15 days.\n\XXXX  (XXXX XXXX): Spoke with XXXX  (Supervisor), who said only $XXXX was available in my personal savings account. No other updates were on the account.\n\XXXX: Spoke with XXXX  in Fraud Operations; she advised funds could not be released and suggested appeal submission (which had already been done by the branch). She incorrectly referenced the cashiers check transaction.\n\XXXX (XXXX XXXX: Spoke with XXXX; she stated appeal was received, reviewed, and denied. Met with XXXX  (XXXX) from XXXX XXXX at branch. He called Security, who confirmed initial appeal was misfiled under personal instead of business account. A second, corrected appeal was submitted with full documentation.XXXX  (Phone): Spoke with XXXX; she stated second appeal was received but not yet worked.\XXXX (Phone): Spoke with unnamed representative who claimed appeal was denied (incorrect). Refused to escalate to Security.\n\XXXX (Phone): Spoke with XXXX; she transferred me to Security. XXXX  stated appeal was denied on XXXX. I explained second appeal had been submitted; she incorrectly claimed business appeal was also denied.\n\XXXX XXXX  Called; advised accounts are credits only, no further updates.XXXX Spoke with rep; advised appeal still under review. If denied, findings would be mailed; if permanent restriction, Id receive a check at the branch.XXXX Spoke with XXXX  (Supervisor); no update available.\XXXX (I received a call from XXXX): XXXX XXXX, Branch Manager (XXXX, TX) requested clarification of funds and infrastructure of my business. I explained business infrastructure and workflow (medical billing for laboratories, providers, specialists; I also explained that I was utilizing XXXX and XXXX  processing; for percentage-payments). I further explained that clients receive payments from insurances, and I receive 5% of monthly revenue for services rendered. I also explained the loss of my earnest money for XXXX XXXX She apologized and committed to escalating.XXXX (branch visit): Met with XXXX  again; provided additional business documentation (insurance claims without PHI). She confirmed legitimacy of funds and escalated matter to Security.XXXX (XXXX XXXX: Spoke with XXXX; no update despite escalation.XXXX (XXXX XXXX): Spoke with XXXX; stated appeal is still under review and can take 15 days. I reiterated that delays were due to Navy Federal error. She noted urgency.XXXX: Spoke with XXXX  who gave incorrect dates. I them went to the XXXX  Tx branc and sat with XXXX  who called the back office and confirmed no updates.XXXX Spoke with XXXX  and XXXX  (Supervisor); no updates. XXXX  asked for additional days, despite 15-day deadline ending XXXX: Spoke with rep; appeal still being worked. Rep asked about wires; I confirmed documentation was already submitted. Rep suggested contacting clients unnecessarily.XXXX (XXXX XXXX): Spoke with XXXX; advised I must verify wires but provided no instructions. Supervisor gave same vague response. No notes left in system. Later at branch, an XXXX  confirmed case assigned to XXXX XXXX. XXXX  had allegedly sent communication on XXXXnever received.XXXX: Spoke with XXXX; confirmed no updates, no further documents required.XXXXXXXX XXXX (XXXX XXXX: Spoke with XXXX; no updates. Suggested contacting clients for wire confirmation (unnecessary).XXXX: Spoke with XXXX; confirmed no updates and prior call not documented.XXXX (XXXX XXXX: Spoke with XXXX; escalated but ended in a survey.XXXX (XXXX XXXX): Spoke with XXXX; incorrectly advised appeal was denied.XXXX  (XXXX XXXX branch): XXXX  confirmed appeal denial and said letter would be mailed. Navy Federal could not provide letter.XXXX  Spoke with XXXX; who advised only $XXXX available. Security advised restriction permanent, without addressing $XXXX in accounts.XXXX: Spoke with XXXX; advised I would receive check after investigation.XXXX (mail received): Letter dated XXXX  regarding fraud claim denied. This was unrelated to my case and based on branchs initial filing error.XXXX: Spoke with XXXX; incorrectly stated appeal denied and that funds would not be returned. Later admitted Security confirmed appeal was still under review. Suggested third appeal, which would require violating HIPAA but no secured link.XXXX (XXXX & XXXX XXXX): Called twice; treated rudely, no update. XXXX  confirmed appeals worked in order received.XXXX Spoke with XXXX; no updates.XXXX: Spoke with XXXX; confirmed restriction still active, but claimed disbursement letter sent XXXX (XXXX XXXX): Spoke with XXXX; confirmed restriction. No record of appeal status.XXXX  (XXXX XXXX branch): XXXX  attempted to escalate; Security gave no information. XXXX  incorrectly stated second appeal denied.XXXX (XXXX XXXX: First CFPB response received . Called Navy Federal and spoke with XXXX  who confirmed Financial Disbursement Letter sent XXXX XXXX Attorney XXXX XXXX submitted formal demand letter to Navy Federal.XXXX (XXXX XXXX: Spoke with XXXX; no notes since XXXX. Confirmed appeal still under investigation. Transferred to XXXX  (Fraud Supervisor), who reiterated same.XXXX (XXXX XXXX): Spoke with XXXX; no updates, unable to confirm attorney letter receipt.XXXX XXXX (XXXX XXXX): Spoke with XXXX; no new updates. Confirmed that is the attorney letter was received Navy Federal will only attach it to case file with the other documentation received.XXXX (XXXX XXXX): Spoke with XXXX; no updates. She would not confirm if the attorney letter was received.XXXX  (XXXX XXXX): Spoke with XXXX; confirmed no case movement or notes since XXXXImpact\n\nDue to Navy Federals mishandling:\n\nMy business has collapsed, resulting in job losses and damaged client relationships.\n\nI have incurred penalties and lost earnest money on a home purchase.\n\nI am unable to pay required annual taxes, exposing me to government penalties.\n\nI have endured severe reputational and financial harm.'

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