Consumer complaint received 2025-07-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: NAVY FEDERAL CREDIT UNION
State: NC

Complaint narrative:
b'Navy Federal Credit Union (NFCU), a federally chartered credit union, has willfully and continuously committed commercial fraud, constructive fraud, unlawful conversion of lawful money, breach of fiduciary duty, and commercial dishonor in relation to an auto loan obligation tied to the XXXX XXXX XXXX XXXX XXXX, lawfully administered by the XXXX XXXX XXXX XXXX XXXX a perfected private foreign estate recorded in XXXX XXXX XXXX XXXX and formed undeXXXX XXXX XXXX XXXX XXXX XXXX  the Trust lawfully issued XXXX XXXX XXXX XXXX in the amount of XXXX drawn in accordance with [31 U.S.C.  5118(d)], [12 U.S.C.  411], [Public Law 73-10], and [UCC  3-311], and mailed via Certified Mail (Tracking #: XXXX XXXX XXXX XXXX XXXX XXXX) to NFCU Legal Department for full settlement and discharge of the alleged debt. A duplicate was served upon the Registered Agent  XXXX XXXX XXXX  (Tracking #: XXXX XXXX XXXX XXXX XXXX XXXX).\n\nThis instrument was never lawfully refused, returned, or rebutted as required under [UCC  3-501(b)(2)]. Instead, NFCU retained the lawful tender, refused to honor it, and has continued to engage in acts of commercial coercion, misrepresentation, and refusal to disclose the requested [OC-10 accounting file], thereby violating trust law, commercial code, and federal obligations.\n\nThe Trusts position is clear: The obligation has been discharged. NFCUs failure to reject the tender within a commercially reasonable time constitutes constructive acceptance, creating a binding settlement under [UCC  3-311] and [UCC  3-603]. Their silence, coupled with continued collection activity and credit suppression, rises to the level of fraudulent conversion, fiduciary breach, and constructive fraud.\nSeveral attempts have been made to settle this matter since the alleged contract was created by NFCU using the XXXX XXXX construct. However, NFCU rejected each attempt by returning the Trusts instruments stamped as Non-Negotiable, often accompanied by a pink slip recommending other payment options. \n\nThese past actions have led the Trust to believe that NFCU expected payment in a different form pursuant to [18 U.S.C.  8]. NFCU has long had verified documentation of the Trust\'s legal structure and commercial identity, including a signed Beneficial Ownership Disclosure Form showing XXXX XXXX XXXX as the lawful agent for XXXX XXXX XXXX XXXX  which they accepted without objection. This confirms that NFCU was in full knowledge of the lawful person and trust entities involved, and had no cause to feign ignorance of the Trusts legal or fiduciary capacity. However, in lieu of any clear request from NFCU for settlement in lawful money as defined under [31 U.S.C.  5118], the Trust has already given lawful consideration and tendered multiple good faith settlement attempts in full satisfaction of the claim. NFCU has failed to present any valid legal reason for its continued non-acceptance to date.\nIn fact, this is not the first attempt the Trust has made to lawfully settle this matter. At least three Gold Clause Checks have been issued over time, each tendered in good faith and in full compliance with federal law. Each was either returned by NFCU or ignored altogether. Some were stamped "Non-Negotiable" and accompanied by a pink slip suggesting "other payment options," but no lawful rejection or OC-10 file has ever been provided. The Trust reasonably concluded that NFCU was requesting a different form of payment under [18 U.S.C.  8], yet at no time has NFCU made any lawful request for settlement in lawful money or provided any rebuttal to the lawfulness of the Trusts instruments. Their repeated refusals, absent lawful cause, constitute a pattern of dishonor and commercial obstruction.\n\nNFCUs bad faith conduct is not speculative  it is documented. As shown in Exhibit E  NFCU Dishonor Letter XXXX XXXX XXXX the institution formally rejected one of the Trusts earliest lawful remittances, stating that the documents you provided do not release you from your obligation, without citing any statute, providing the OC-10, or returning the instrument. This letter, combined with the prior exhibits, demonstrates a systemic refusal to acknowledge payment, avoid paper trails, and conceal commercial dishonor across multiple trust tenders. NFCU has maintained this obstruction while retaining full knowledge of the Trusts legal standing and fiduciary disclosures on file.\n\nDespite prior formal notice, NFCU has failed to:\n Acknowledge lawful tender under federal statute\n Return or dishonor the instrument\n Produce the OC-10 file or any accounting ledger\n Identify the lawful medium of payment they do accept\n Refrain from collection actions while in dishonor\n\nThe Trust has suffered the following irreparable harms:\n Destruction of credit expectations\n Administrative blockage of commercial remedy\n Injury to the reputation and status of the Trust\n Wrongful threat of repossession of trust property\n Emotional distress and interference with estate operations. NFCUs handling of this matter reflects a pattern of calculated evasion, including intentional suppression of electronic records, denial of mailing evidence, and efforts to obscure lawful communications. Their refusal to generate a paper trail, in light of the Trusts verified consent to electronic signature and recordkeeping (see Exhibit D  ESIGN Consent Confirmation), underscores their bad faith and deliberate dishonor\n\nThese actions violate:\n [18 U.S.C.  8]  Definition of U.S. obligations\n [31 U.S.C.  5118]  Legal tender obligations\n [UCC  3-311]  Accord and satisfaction\n [UCC  3-603]  Discharge by tender\n [Restatement (Third) of Trusts  78]  Fiduciary duty\n [15 U.S.C.  1692e]  False representation of debt\n [15 U.S.C.  1666]  Fair Credit Billing Act\n [15 U.S.C.  1681]  Fair Credit Reporting Act\n\nNFCUs refusal to acknowledge lawful payment constitutes an intentional act of systemic deceit, willful concealment, commercial suppression, unjust enrichment, and denial of remedy under both federal law and equity jurisdiction.\n\nRespectfully submitted on behalf of:XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXAll rights reserved. Without prejudice.\n[UCC 1-308] [UCC 1-103] [Public Law 73-10]'

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