Consumer complaint received 2025-07-25 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
I had a secured credit card with Navy Federal Credit Union that was funded with my own deposit. I made consistent, on-time payments for over XXXX years, even while on XXXX. I was never late and expected the account to graduate to an unsecured card or qualify for a credit limit increase based on good history. 

Instead, Navy Federal closed the account without ever notifying me in writing. I only found out by calling in XX/XX/XXXX. Even after the account was closed, Navy Federal continued to withdraw payments from my bank account, which I never authorized post-closure. This was deceptive and financially harmful. 

Despite never missing a payment, Navy Federal reported the account as charged off, damaging my credit. They made it look like I owed them money, even though the card was secured by my own funds. I requested a written explanation and documentation, but I never received it. 

I also submitted dispute letters to the credit bureaus with supporting documents, but Navy Federal failed to correct or investigate the inaccurate reporting, in violation of the Fair Credit Reporting Act ( FCRA 623 and 611 ).

Im requesting that this inaccurate account be removed from my credit reports, that all unauthorized post-closure payments be refunded, and that Navy Federal be held accountable for these harmful actions. 
" Initial call to Navy Federal XX/XX/XXXX ( Login issue and account inquiry ) '' I followed up on the morning of XX/XX/XXXX, with a XXXX call to Navy Federal and spoke with XXXX  ( ID # XXXX ). I asked for documentation on the account closure, payments, and reporting, but was never provided with any of the requested information.exhibit A XXXX XXXX I received Navy Federal Monthly Statement Notification. Exhibit XXXX XXXX I still was making payments and again I got a Navy Federal Monthly notification I continued to receive monthly statement notifications from Navy Federal , including on XX/XX/XXXX and again on XX/XX/XXXX, which proves the account was still being managed and treated as active. This conflicts with their later verbal claims that the account had already been closed or charged off. These conflicting actions further show that I was never properly informed, and the account was mishandled.exhibit C-verified XXXX claim- ongoing medical hardship during Navy Federal account handling I was out of work and on verified XXXX  XXXX starting in XX/XX/XXXX, as documented in the attached XXXX XXXX form XXXX Despite my medical condition and reduced income, I continued making timely payments to Navy Federal and maintained the secured card responsibly. Their decision to close the account and report it as charged off without notifying me has caused extreme hardship and emotional distress during a difficult time.exhibit D-XXXX XXXX income proof prior to XXXX ( XX/XX/XXXX ) I have attached a pay stub from XX/XX/XXXX showing I was earning over {$3700.00} per week before going out on medical XXXX. I was maintaining my secured credit card responsibly and had a strong income history. Navy Federals decision to close the card, report it negatively, and deny me unsecured graduation despite my consistent payments and earnings was unjust and discriminatory during a documented hardship.

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