Consumer complaint received 2024-11-09 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: MD

Complaint narrative:
I am writing to file a formal complaint against Navy Federal Credit Union ( NFCU ) regarding a series of troubling incidents related to my account, in which the institution held funds for extended periods despite evidence of cleared deposits, resulting in unwarranted fees and returned checks. As a long-term customer with nearly a decade of loyalty to NFCU, I am extremely disheartened by these practices, which I believe violate both consumer rights and the fair banking practices expected of credit unions. 

In recent transactions, including two XXXX deposits and one pending direct deposit, Navy Federal unreasonably delayed the availability of these funds, even though they were cleared by the senders banks. My latest deposit, a XXXX transfer from my mother, was held for an extended period. Despite being under Navy Federals control, the funds were not made available to me in a timely manner. Navy Federal provided me with three different fund availability dates before I could access the funds. As a result, two critical transactions were returned unpaid, and I was charged two {$29.00} return check fees.

Furthermore, Navy Federal failed to make these funds available in time to cover my car insurance payment, even though the deposit was made three days prior. This failure to promptly release my funds appears to contravene Regulation CC ( Availability of Funds and Collection of Checks ), which mandates that financial institutions provide clear and consistent funds availability timelines. Additionally, by bouncing important bills when funds were in its possession, Navy Federal may be violating principles of the Fair Credit Reporting Act ( FCRA ), as these unnecessary fees and return payments could negatively impact my credit record.

I am particularly concerned about Navy Federals inconsistent funds management, which includes unlocking my account and transferring funds from various sub-accounts without my authorization to cover transactions it deems recurring. In contrast, when actual recurring bills such as my insurance payment are due, Navy Federal has returned them unpaid without a valid reason. This treatment feels punitive and unreasonably restrictive, especially given my history of responsible account management with very few return check fees prior to these incidents.

I respectfully request an investigation into Navy Federal Credit Unions practices concerning funds availability and the assessment of return check fees. This inconsistency, along with a lack of transparency and adherence to regulated funds availability standards, has led to financial harm and significant stress. I am including evidence, including screenshots and transaction records, that document these delays and fee assessments. 

Thank you for your attention to this matter. I look forward to a prompt resolution that ensures fair treatment for credit union customers like myself. If you need any additional information or documentation, please feel free to contact me directly.

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