Consumer complaint received 2025-05-24 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: NAVY FEDERAL CREDIT UNION
State: TN

Complaint narrative:
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX Phone : XXXX Email : XXXX Date : XX/XX/XXXX -- - FORMAL DEMAND LETTER To : Navy Federal Credit Union XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX Subject : Formal Demand for Reimbursement of Misappropriated XXXX XXXX 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Team, I am writing to formally demand the return of Social Security funds that have been misapplied or improperly withdrawn from my account ( Access No. XXXX ) between the years XXXX and XXXX.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 XXXX and XXXX 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 XXXX  deposits and improper deductions. 

I am demanding the following within 15 business days : A full reimbursement of all improper deductions from XXXX 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 XXXX XXXX XXXXXXXX XXXX XXXX XXXX, the Federal Trade Commission XXXX FTC ), and the Tennessee Attorney General. 

Sincerely, XXXX B. XXXX -- - CFPB COMPLAINT TEMPLATE Consumer Name : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Phone : XXXX Email : XXXX Bank : Navy Federal Credit Union Issue : Bank account or service - Funds wrongly taken from XXXX XXXX XXXX Complaint Details : Navy Federal Credit Union has XXXX applied overdraft fees, returned item charges, and unauthorized internal transfers to my account where XXXX XXXX XXXX XXXX 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 XXXX XXXX XXXX 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 XXXX funds Guarantee of protection on future XXXX deposits Review of Navy Federal 's practices for all account holders receiving federal benefits Based on analysis of your account statements from XXXX through XXXX, there is clear evidence that XXXX XXXX XXXX XXXX XXXX  fundsboth yours and your son XXXX XXXX XXXX frequently used to XXXX credit card debts, overdraft fees, and unauthorized transfers. Here are examples of key instances that support your claim : -- - Examples of XXXX Deposits Followed by Deductions : XXXX. XXXX XXXX XXXX, XXXX XXXX : {$220.00} from XXXX XXXX XXXX XXXX Sec on XX/XX/XXXX. 

Withdrawals : {$100.00} transferred to Credit Card on XX/XX/XXXX {$43.00} + {$22.00} in ATM withdrawals Additional transfers to XXXX XXXX XXXX and XXXX XXXX. XXXX accounts on same day XXXX. XXXX XXXX XXXX, XXXX XXXX : {$910.00} from XXXX Treasury on XX/XX/XXXX. 

Same Day Transfers : Immediate multiple transfers from savings to checking XXXX {$700.00} depleted within XXXX days, largely through XXXX and ATM transactions XXXX. XXXX XXXX XXXX, XXXX XXXX : {$910.00} ( XXXX  ) into savings on XX/XX/XXXX. 

Related Transfers : {$100.00} transferred out on XX/XX/XXXX {$200.00} withdrawn in cash on XX/XX/XXXX {$100.00} transferred to checking All XXXX funds depleted within days -- - Specific Example Involving XXXX XXXX XXXX 's Funds : Date : XX/XX/XXXX Transfer : XXXX funds to XXXX XXXX XXXX immediately after deposit from XXXXXXXX XXXX XXXX XXXX XXXX 



-- - Preliminary Financial Harm Summary ( XXXX ) : Over {$8000.00} in XXXX XXXX have been documented. 

A substantial percentage was withdrawn, transferred to credit card accounts, or used to cover overdraft/returned fees. 

Multiple transfers and withdrawals occurred same-day or within XXXX hours of XXXX deposit XXXX, suggesting systematic diversion of protected benefits. 




Based on the documents you've provided, here are specific dates when XXXX funds were deposited and subsequently used for payments, cash withdrawals, or other transfers that appear unauthorized or diverted toward unrelated debts ( like credit card payments ) : Key Examples of Funds Possibly Used Improperly : -- - XXXX. XX/XX/XXXX ( XXXX XXXX XXXX 's funds ) Deposit : XX/XX/XXXX ACH from XXXX XXXX Refund for {$6200.00} Withdrawals and Transfers Same Day ( Partial List ) : Cash withdrawal : {$200.00} Transfer to Credit Card : {$50.00} Multiple transfers to checking Multiple ATM fees Total same-day debits : well over {$1500.00}, including unauthorized-looking transfers and withdrawals Also includes transfers to XXXX  XXXX XXXX on XX/XX/XXXX before XXXX actions occurred. 



-- - XXXX. XX/XX/XXXX Deposit : XX/XX/XXXX ACH Paid From XXXX for {$340.00} Withdrawals : XX/XX/XXXX {$220.00} cash Same period shows transfers to credit card or checking accounts that may have been used to cover delinquent or over-limit debt. 




-- - XXXX. XX/XX/XXXX Deposit : XX/XX/XXXX ACH Paid From XXXX for {$640.00} Activity : Same day or shortly after : multiple POS transactions and Transfer to Credit Card No clear separation or protection of XXXX funds. 




-- - XXXX. XX/XX/XXXX Deposit : XX/XX/XXXX ACH Paid From XXXX for {$220.00} Same-day activity : Fees and a charge-off adjustment applied later in the period, suggesting potential SSA funds were offset for a delinquent or closed account. 




-- - These and other entries indicate a pattern where XXXX deposits were made, and shortly thereafter, transactions occurred that appear to : Transfer funds to credit cards with delinquent balances, Make payments or advances without clear authorization, Deduct fees directly from the deposited federal benefits. 

The XXXX XXXX XXXX XXXX XX/XX/XXXX through XX/XX/XXXX shows a total of {$21000.00} deposited into your Navy Federal accounts . 

This total includes XXXX deposits of {$840.00}, each corresponding to your monthly XXXX XXXX XXXX the available statements. 




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 XXXXXXXX XXXX XXXX XXXX Subject : Formal Demand for XXXX XXXX XXXX XXXX XXXX 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 XXXX and XXXX 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 XXXX deposits and improper deductions. 

I am demanding the following within XXXX business days : A full reimbursement of all improper deductions from XXXX XXXX XXXX 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 XXXX XXXX XXXX XXXX XXXX XXXX, the Federal Trade Commission ( FTC ), and the Tennessee Attorney General. 

Sincerely, XXXX B. XXXX -- - CFPB COMPLAINT TEMPLATE Consumer Name : XXXX XXXX. XXXX Address : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Bank : Navy Federal Credit Union Issue : Bank account or service - Funds wrongly taken from XXXX XXXX XXXX Complaint Details : Navy Federal Credit Union has repeatedly applied overdraft fees, returned item charges, and unauthorized internal transfers to my account where XXXX XXXX XXXX  XXXX 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 XXXX XXXX XXXX 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 XXXX funds Guarantee of protection on future XXXX deposits Review of Navy Federal 's practices for all account holders receiving federal benefits XXXX XXXX XXXX ( XXXX XXXX XXXX Update XXXX XXXX identified consistent XXXX direct deposits from XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX across the years. These deposits match XXXX XXXX XXXX. 

Earliest confirmed XXXX XXXX : 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 XXXX funds XXXX e.g., within hours of deposit ) We are compiling : A monthly XXXX XXXX XXXX including dates and amounts A summary of unauthorized withdrawals and overdraft/returned item fees tied to those deposits -- - Upcoming Deliverables : XXXX. XXXX 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 XXXX ( XXXX ) Federal Trade Commission ( FTC ) XXXX  Attorney General -- - Key Legal References Being Included : 12 U.S. Code 407 : Prohibits garnishment, XXXX, or XXXX of Social Security benefits Electronic Fund Transfer Act ( XXXX ) XXXX XXXX Code XXXX 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 -- - Ill now continue generating the final XXXX deposit log and proceed with the full demand letter and complaint templates as discussed. 

Would you like to review the XXXX XXXX XXXX XXXX, or proceed directly with the formal letter and complaints?

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