Consumer complaint received 2025-07-03 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Account reinstatement or redemption after repossession
Company: NAVY FEDERAL CREDIT UNION
State: OH

Complaint narrative:
In XX/XX/year>, a representative from Navy Federal or their third party repossession company contacted my spouse to discuss my account. I had received no personal notification or letter from Navy Federal stating that my vehicle was up for repossession. Though I was slightly behind, payments were still being made regularly. Payments were also being taken from my veterans XXXX pay as I was awaiting a XXXX increase. A payment agreement was arranged with the representative and I was told if I paid that day ( which I did ) my vehicle would not be repossessed. They still attempted to repossess my vehicle after making this agreed payment. My vehicle was reinstated and it was returned to me within days, so it DOES NOT classify as a legal or a complete repossession. Despite this, Navy Federal continues to wrongfully and illegally report this inaccurately to the credit bureaus. A repossession attempt that is reversed or reinstated is incomplete and legally can not be documented as a repossession, as ownership of the vehicle remained with me and NOT Navy Federal. This violates the Fair Credit Reporting Act ( FCRA ) 15 U.S. Code 1681 for Inaccurate reporting of a repossession that did not occur or was rescinded. Failure to investigate a dispute is also a violation. I formally submitted a dispute to Navy Federal per a representatives instructions through the secure messaging center. Navy Federal deleted this message ( and all messages pertaining to this dispute ) from my account. They never contacted me and continue reporting information inaccurately on my report. I believe additional rights were violated when they spoke to my spouse, as they told me personally they could not speak to him about my account. They also told me it has been too long to investigate. 

I am not giving this up as I know my consumer rights are being violated. Per Metro 2 Guidelines, a repossession status can only be reported if the collateral was repossessed AND the account was not reinstated. My account was reinstated and my vehicle was returned to me. Therefore it can not be documented as a repo or a paid repo. A paid repossession would mean I paid to retrieve my vehicle after full legal ownership was taken by Navy Federal. Per law, I have the right to pay my balance and reinstate, which I did because I was only behind a small amount. 
Navy Federal refuses to speak to me regarding this account. I have sent various secure messages and contacted them by phone a number of times. They have repeated the same line over to me, stating they can not change how the credit bureaus report my information and they refuse to answer my questions. This is false. 

Just today, another dispute with Equifax has been left unchanged with the same inaccurate information being reported. Navy Federal stated in a previous complaint they were still working on the investigation, however, I have not been contacted. This inaccurate repossession reporting has caused me damages and I have been denied mortgages because of it. I would like the repossession status removed immediately and any comments stating repossession or paid repossession to be removed. My account has been paid in full and is in good standing. Please complete this investigation within XXXX XXXX, not XXXX. It has already been going on for several months with no conclusion.

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