Consumer complaint received 2025-06-05 00:00:00
Product: Money transfer, virtual currency, or money service — Money order, traveler's check or cashier's check
Issue: Fraud or scam — 
Company: NAVY FEDERAL CREDIT UNION
State: OH

Complaint narrative:
On XX/XX/year>, I called " Navy Federal Credit Union '' to inquire about becoming a member, opening accounts with the credit union, and specifically if the credit union will accept a " bill of exchange ''. I was given the information requested, as well as, I was informed by customer service representatives that the credit union does accept a " bill of exchange '', as long as it is negotiable. I called twice to double check, and got the same response from both representatives. Today, XX/XX/year>, I traveled from XXXX, Ohio to XXXX, Ohio where the only physical branch of the credit union exists in the entire state. After waiting for over an hour to be seen, I went through the process of becoming a member, setting up checking and savings accounts, and attempted to deliver the " bill of exchange '' in good faith. After going through the excruciating process of becoming a member and setting up accounts, the branch representative " XXXX '' that assisted me, and an assistant branch manager named, " XXXX XXXX '' flip flopped the information and refused to accept the negotiable instrument claiming improperly that the instrument was not negotiable when, in fact, it is negotiable. The negotiable instrument, " bill of exchange '', is properly indorsed according to Uniform Commercial Code section 3 making it negotiable. I explained to both representatives that even according to " XXXX XXXX XXXX '', their definition of the term " check '' states that an instrument may be a check even though it is described on its face by another term, such as " money order. '' Additionally, I explained that according to the definition of the term " bill of exchange '' provided by " XXXX XXXX XXXX '' states that " For example, a check is a type of bill of exchange. ". I was told by the XXXX representatives, as well as, several over the phone customer service representatives and supervisors that Navy Federal Credit Union does not accept a " bill of exchange ''. I then asked them to clarify, because they seemed to contradict themselves due to the credit union accepting " checks '', which are bills of exchange according to the definition, but not a " bill of exchange '', being that a check is a bill of exchange. They refused to elaborate, or discuss the matter any further, and flat out refused to accept the negotiable instrument that I presented in good faith to the credit union. Clearly this is not only a type of " bait and switch '' tactic, but also having become a member prior to the refusal, Navy Federal Credit Union now has a " fiduciary duty '' to act in my best interest inherently. Instead of accepting the negotiable instrument honorably, I was offered a " traditional loan '' option, which takes advantage of me, and steals from me, the value presented in the form of a different type of negotiable instrument, a " loan agreement '', or " promissory note '', that Navy Federal Credit Union would not provide proper consideration in the transaction, sell the " loan agreement '' promissory note to " fund the loan '' in the open market, or apply directly to the Federal Reserve, through the " discount window '', for the funds to provide to me in the transaction, but never having provided any true consideration, at all. On it's face, the " loan offer '' is potentially fraud, misrepresentation, misinformation, and taking advantage of me so the credit union can profit immensely on the potentially fraudulent misrepresentation of how the " loan '' is truly funded. This is, more than likely, a blatant breach of fiduciary duty, in my opinion. I absolutely detest being misled, lied to, having my trust violated, and being taken advantage of, by anyone, especially Navy Federal Credit Union. I am appalled at the audacity, and incompetence, of the representatives and their inability to know, or even comprehend, the true lawful and legal definitions of the terms regarding " negotiable instruments '', that the credit union processes everyday to conduct it's business. This matter may also be viewed as possible discrimination due the refusal and dishonor by the credit union representatives to accept the acceptable negotiable instrument. According to Uniform Commercial Code section 4-402, the financial institution is liable for damages regarding it's dishonor of a negotiable instrument presented in good faith. I attempted to work this situation out with Navy Federal Credit Union representatives, but they began being rude, and kept repeating the ridiculous notes notated in my account file by XXXX XXXX, assistant branch manager, of the physical branch located in XXXX, Ohio, that I traveled to today, XX/XX/year>. I am disgusted at the lack of professionalism, being forced to wait on hold for nearly an hour for no good reason, just to get the same incompetent dissertations from the inept representatives. I was left no choice but to file this complaint for the representatives lapse of reasoning, unprofessionalism, and dishonor/refusal to accept the negotiable instrument. Financial institutions that act in this manner seem to violate the basics concepts of the " Truth in lending Act '', or " TILA '', by refusing to be transparent and taking advantage of it's " customer base ''. Something must be done about this. I may be forced to file a civil lawsuit against Navy Federal Credit Union for it's violations of the laws, and the damages caused by their refusal. I am in shock that they act in such a reckless manner, essentially stealing from it's own members, rather than acting in honor. Thank you for your time and attention to this matter.

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