Consumer complaint received 2025-12-09 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: NV

Complaint narrative:
I am filing this complaint about Navy Federal Credit Unions mishandling of multiple debit card fraud claims on my checking account, their decision to label my account as Debit Card Abuse and restrict my debit card access until XX/XX/year>, and their refusal to provide the investigation documentation they repeatedly told me I have a right to request. 

Over about a four-month period, I experienced several unauthorized debit card transactions on different Navy Federal debit cards linked to my checking account. I promptly reported these as fraud. Navy Federals own message to me states that I file

d five fraud claims totaling {$2600.00} during that time. Examples of the disputed amounts include : A fraud claim for approximately {$1300.00} on debit card ending in XXXX A fraud claim for {$950.00} on debit card ending in XXXX Smaller XXXX charges ( for example {$1.00} ) that Navy Federal initially treated as suspicious and opened fraud claims for A separate fraud claim for {$100.00} on debit card ending in XXXX, which Navy Federal XXXX XXXX was valid fraud and permanently credited back to me ( along with a {$1.00} In several instances, Navy Federal XXXX XXXX fraud claim and then denied it the same day I reported it. For example, with the XXXX transaction and the larger disputed amounts, I received one email saying a fraud claim had been submitted and, later that same day, another email titled Update on Your XXXX Claim denying the claim and stating the charges were valid. This makes it hard to believe that a meaningful investigation was actually performed before they decided to deny my claims. 

The general pattern was the same each time : 1. Navy Federal sent emails titled Update on Your Reported Fraud confirming that my card had been deactivated, that they had identified suspicious activity ( such as the XXXX transaction for {$1.00} ), and that a fraud claim had been or would be submitted. 
2. Later, they sent emails titled Update on Your Fraud Claim stating that they were unable to honor my fraud claims, that their review showed the charges were valid and no error occurred, and that I had the right as a consumer to request the documentation we relied on in making our determination.

3. For the card ending in XXXX, they first placed a provisional credit of {$100.00} while they investigated, then later sent an email titled We Verified Your Debit Card Fraud Claim confirming the claim was valid and that the {$100.00} credit was now permanent. 

At the same time, I also received emails from Navy Federal titled Suspicious Debit Card Fraud Claims. These letters stated that I had filed numerous fraud claims on my card that they considered suspicious, and warned that if I continued to do so, my debit card access could be revoked for up to three years. Later, I was informed that my account had been classified as Debit Card Abuse and that my debit card access would be restricted until XX/XX/year>. 

I did not receive any clear, specific explanation of what behavior Navy Federal considered abuse, what exact clause of the Debit Card Disclosure Agreement they claimed I violated, or why I was being punished with a multi-year restriction when they themselves acknowledged at least one of my fraud claims ( for {$100.00} ) was valid.

Because of this, I submitted a detailed complaint through Navy Federals secure messaging system. In that message, I specifically requested : A written summary of the investigations for each fraud claim that was denied ; The actual documentation and evidence they relied on to conclude that I authorized or participated in the disputed transactions ( such as merchant responses, authorization/terminal or PIN data, device/IP information, or internal fraud notes ) ; The exact clause ( XXXX ) of the Debit Card Disclosure Agreement they believed I violated to justify labeling my account as Debit Card Abuse ; and Details of the debit card restriction, including why it was imposed, how long it would last, and whether there was any review or appeal process. 

In response, Navy Federal sent a brief message stating that my fraud claim remained denied due to discrepancies within your claim and not enough evidence to honor the claim. They also stated that most of their fraud investigation is done electronically, that physical documentation is minimal, and that they would not provide what they called sensitive internal information. In other words, despite their earlier written statements that I had the right to request the documentation they relied on, they have refused to provide any meaningful investigation records or specific evidence supporting their decisions. 

As a result : I am still out a significant amount of money from denied fraud claims ( including the larger amounts of approximately {$1300.00} and {$950.00} ), even though I reported the transactions promptly and followed Navy Federals procedures.

My account has been labeled as Debit Card Abuse, and I have been told my debit card access will be restricted until XX/XX/year>. 
I have never been given a clear explanation of what Navy Federal believes I did wrong, what evidence they have that I authorized these transactions, or how I am supposed to regain normal access to my own account. 

I believe Navy Federal has failed to comply with its obligations under Regulation E and other consumer protection rules by : Failing to provide the documentation they themselves said I had a right to request ; Failing to provide a clear, substantive explanation of why they denied my fraud claims ; and Imposing a long-term debit card abuse restriction and effectively punishing me for reporting fraud in good faith. 

I am asking the CFPB to review Navy Federals handling of my fraud claims and to require Navy Federal to : 1. Provide complete copies of the fraud-investigation records and evidence they relied on to deny my claims and to label my account as Debit Card Abuse ; 2. Re-evaluate the disputed transactions and reimburse any unauthorized charges where they can not show that I actually authorized the transactions ; and 3. Remove or fairly review and shorten the multi-year debit card restriction, and provide a clear explanation in writing of any restrictions remaining on my account.

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