Consumer complaint received 2026-01-28 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
I am submitting this complaint regarding Navy Federal Credit Unions handling of an auto loan taken on XX/XX/XXXX ( Loan # XXXX ), following a vehicle purchase that we attempted to return to XXXX on XX/XX/XXXX and a still unresolved dealer refund, which has created balance uncertainty and an improper use of pressure to finalize or recharacterize the loan before the full rewind of the car purchase. 

I purchased a vehicle ( XXXX XXXX XXXX ) using dealer-arranged financing with Navy Federal Credit Union . As part of the transaction, I traded in another vehicle valued at {$11000.00}. The purchased XXXX XXXX was returned to and accepted by the dealer, XXXX, on XX/XX/XXXX. However, the transaction was not fully unwound because the {$11000.00} trade-in value was not refunded to me at the time of return or any point since then. 

XXXX now asserts that the {$11000.00} trade-in value was paid to Navy Federal Credit Union . Navy Federal has been unable to confirm receipt, application, or non-receipt of that {$11000.00} and has provided no documentation showing where those funds are. As a result, Navy Federal can not determine where the {$11000.00} is and can not determine the true balance of the XXXX XXXX loan. 

The remaining balance on the XXXX XXXX loan is less than {$11000.00}. Depending on the disposition of the {$11000.00} trade-in value, it is currently unknown whether the balance is accurate, overstated, or whether a credit or refund may actually be owed to me once the dealer unwind is completed and the trade-in value is fully accounted for.

Despite this unresolved accounting uncertainty, Navy Federal representatives stated there is no suspend or dispute option for the loan, said there was no compliance point of contact, and spent approximately 30 minutes attempting to persuade me to agree to cancel the XXXX XXXX loan and move the balance to a previously satisfied loan associated with the trade-in vehicle, describing this as an easier process and offering a lower interest rate. I did not consent to any cancellation, conversion, or recharacterization. 

A loan balance is considered final only when all credits and offsets are known and applied. Because it is unknown whether the {$11000.00} trade-in value was paid to me, paid to Navy Federal on my behalf, or retained by the dealer, the balance is unliquidated and disputed. Proceeding to finalize, cancel, or recharacterize the loan before the dealer completes the unwind risks enforcing an inaccurate obligation or eliminating a consumer credit.

I am requesting that Navy Federal maintain the XXXX XXXX loan in dispute/suspense status, suspend interest, collections, and adverse credit reporting, and refrain from any cancellation or recharacterization until the {$11000.00} trade-in value is fully accounted for and the final balance or credit amount is determined.

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