Consumer complaint received 2024-07-20 00:00:00
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
Dear Sir/Madam, I am writing to file a formal complaint against Navy Federal Credit Union regarding the litigation initiated against my Visa Signature XXXX credit card account, which was closed on XX/XX/XXXX. My account is currently six payments past due in the amount of {$860.00}. I have previously notified Navy Federal Credit Union of my status as a XXXX veteran, rated at Special Monthly Compensation ( SMC-S ) due to my XXXX XXXX XXXXXXXX. 

Despite notifying Navy FederaXXXX of my status and the protections afforded to me under federal law, they have proceeded with litigation. As a XXXX veteran, I am entitled to specific protections under 38 U.S.C. 5301 ( a ), which safeguards veterans benefits from taxation, claims of creditors, and other forms of legal process, ensuring that they are not subject to XXXX or forfeiture. Additionally, under the XXXX Civil Relief Act ( SCRA ), I am entitled to further protections against undue financial hardship. 

In support of my case, I would like to reference the following legal precedents : XXXX. XXXX v. XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : This case established that veterans benefits are protected from creditors, reinforcing the principle that such benefits can not be seized for debt payment. 
XXXX. United States v. XXXX, XXXX XXXX XXXX. XXXX ( XXXX. XXXX XXXX ) : This case affirmed that veterans XXXX benefits are exempt from claims of creditors, further highlighting the legal protections in place for XXXX veterans. 
XXXX. XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : This case emphasized the need for leniency and special consideration for veterans due to their unique circumstances, supporting the argument for tailored financial solutions. 

As a XXXX veteran who has served this country honorably, it is disheartening to face such financial distress. The stress and anxiety caused by this ongoing litigation have had a severe impact on my mental and emotional well-being. Every day is a struggle, and the burden of this debt only exacerbates the challenges I face due to my XXXX. 

The benefits I receive are meant to help me cope with the difficulties of everyday life, and they are crucial to my survival and stability. The prospect of losing these benefits to repay this debt is not only terrifying but also unjust. I have sacrificed so much for my country, and now I am asking for your help to ensure that I am treated fairly and with the respect and compassion that every veteran deserves. 

I implore the Consumer Financial Protection Bureau to take immediate action to rectify this situation. The protections under 38 U.S.C. 5301 ( a ) and the SCRA exist to shield veterans like myself from undue financial hardship and to honor our service. By discharging this debt, Navy Federal Credit Union would be upholding the spirit of these laws and providing me with the relief I desperately need. 

Furthermore, I would like to understand how my case was put into litigation despite my notification of my XXXX veteran status. This action seems to disregard the legal protections I am entitled to, and I am deeply concerned about this oversight. 

Thank you for your attention to this request. I look forward to your prompt response. 

Sincerely, XXXX XXXX

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