Consumer complaint received 2024-09-07 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: NAVY FEDERAL CREDIT UNION
State: MD

Complaint narrative:
Dear CFPB, I am writing to formally submit a complaint regarding Navy Federal Credit Unions mishandling of a fraudulent loan account under my name. I have been a loyal member of Navy Federal for 17 years, during which time I have maintained several savings accounts, obtained car loans, and consistently supported the institution through a variety of financial products. Despite this long-standing relationship and strong track record, I recently became the victim of a sophisticated scam that has left me wrongfully liable for a {$5000.00} loan. 

On XX/XX/year>, I was contacted by scammers who masked their phone number to appear as though they were calling from Navy Federal Credit Union. Through this scam, they were able to access my account, apply for a personal loan of {$5000.00}, and transfer the funds via XXXX XXXX. Upon realizing I had been defrauded, I promptly notified Navy Federal and submitted all necessary documentation to demonstrate that this was a fraudulent act.

Despite my prompt reporting and Navy Federals stated " zero liability '' policy, which is supposed to protect members in cases of unauthorized transactions and fraud, they have failed to apply this protection to my case. Instead, I have been held responsible for this fraudulent loan. Since the incident, I have been repeatedly redirected between their Fraud, Collections, and Security departments, each providing conflicting information and inundating me with endless paperwork to submit, resubmit, revise, and resign, with no resolution in sight. The constant back-and-forth has made it nearly impossible to achieve any meaningful progress in my case. Additionally, each time I called Navy Federal, I was kept on hold for hours and transferred through multiple agents, all of whom provided conflicting information, further exacerbating the situation and contributing to my sense of frustration and helplessness. 

Throughout the investigation, I made numerous attempts to put the loan payments on hold while the fraud was under review. Despite these efforts, I was ignored and told that they could not place the loan on hold because it had not been open for 30 days. Later, I was informed that Navy Federal does not typically offer payment holds during an investigation. This left me with no option but to continue making payments on a loan I did not authorize, forcing me to financially bear the burden of a fraudulent transaction even while it was being reviewed. This practice is not only unfair, but potentially illegal under the Electronic Fund Transfer Act ( EFTA ), which provides protection against liability for unauthorized transactions. Navy Federal 's refusal to place a hold on the loan payments while investigating the fraud violates the spirit of these legal protections and has caused me undue financial stress.

The only formal written communication I have received from Navy Federal on this matter was a one-line notice stating : We have reviewed your request and hold you liable for this loan. If you have any additional questions, please contact us in writing via messenger or follow Navy Federal 's established process for disputes. This response, given the gravity of the situation, is inadequate and lacks any meaningful explanation of their investigation or why their " zero liability '' policy is not being applied.

At this point, I feel that Navy Federal, as a large institution, is overlooking their own commitment to protecting members from fraud. Despite my long-standing membership and solid financial history, my case has been handled without the proper consideration or transparency. The ongoing requests for additional paperwork, combined with the lack of clear communication, excessive hold times, and conflicting information from various agents, have left me feeling overwhelmed and abandoned by an institution I once trusted. 

Given my 17-year membership and responsible financial history, I believe I deserve fairer treatment and a thorough investigation under Navy Federals `` zero liability '' policy. I am requesting the Consumer Financial Protection Bureaus assistance in ensuring that Navy Federal absolves me of any liability for this fraudulent loan and improves their processes for handling fraud cases in a manner that is fair, transparent, and consistent with their stated policies, as well as with the EFTA. 

Thank you for your attention to this matter. I look forward to your prompt response and any further guidance you can provide.

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