Consumer complaint received 2024-10-12 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Investigation took more than 30 days
Company: NAVY FEDERAL CREDIT UNION
State: VI

Complaint narrative:
I am submitting this formal complaint against Navy Federal Credit Union regarding a fraudulent account reported under account number XXXX. Despite my filing an identity theft report with the Federal Trade Commission ( FTC ), Navy Federal Credit Union continues to unlawfully report this fraudulent account and engage in collection activities, which is damaging my credit and personal well-being. I request immediate intervention and enforcement of my rights under federal law. 

Attached is the FTC Identity Theft Report, which confirms my identity theft claim and supports my dispute of this fraudulent account.

Legal Violations and Consequences : 1. Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681c-2 ( a ) ( Section 605B ) Under Section 605B of the FCRA, Navy Federal Credit Union is legally obligated to block and remove any fraudulent information from my credit report within four business days of receiving proof of identity theft. Despite being provided with the FTC report, they have failed to remove this account. Their actions violate the FCRA, which mandates that they cease reporting this account immediately.

2. FCRA 15 U.S.C. 1681s-2 ( b ) This section prohibits Navy Federal Credit Union from verifying or continuing to report information to credit reporting agencies ( XXXX, XXXX, and XXXX ) while the account is under dispute. Despite my identity theft claim and dispute, they have continued to report this account, violating this section of the FCRA.

3. Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692g ( b ) Navy Federal Credit Union has failed to provide sufficient validation of the alleged debt, violating the FDCPA. They continue to attempt to collect this fraudulent debt, despite my formal dispute, further violating federal consumer protection laws.

4. Truth in Lending Act ( TILA ) 15 U.S.C. 1601 et seq.

As I have never entered into any credit agreement with Navy Federal Credit Union, and no disclosure documentation has been provided to me, their continued reporting of this fraudulent debt is a violation of TILA.

5. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) 12 U.S.C. 5531 Navy Federal Credit Unions actions in attempting to collect on this fraudulent debt and failing to provide proper documentation of the debt qualify as unfair, deceptive, and abusive under UDAAP statutes.

6. Identity Theft and Assumption Deterrence Act ( ITADA ) 18 U.S.C. 1028 Despite my filing a formal identity theft report with the FTC, Navy Federal Credit Union continues to report this fraudulent account. Their failure to investigate and remove this account could be seen as a violation of the ITADA, which outlines criminal penalties for businesses that fail to take appropriate action after receiving notice of identity theft.

7. Electronic Fund Transfer Act ( EFTA ) 15 U.S.C. 1693 If any unauthorized trans
fers or withdrawals related to this fraudulent account were made, their actions would also violate the EFTA, which protects consumers from unauthorized electronic transactions.

8. Violations of State Laws In addition to federal violations, their actions also violate state consumer protection laws that provide further protections against fraudulent debt reporting and identity theft. Immediate Actions Requested from th
e CFPB : 1. Immediate Removal of the Fraudulent Account : I am requesting the CFPB to take action against Navy Federal Credit Union to ensure the immediate and permanent removal of this fraudulent account from my credit reports with all major credit bureaus ( XXXX, XXXX, and XXXX ). 
2. Cease All Collection and Reporting Activities : Navy Federal Credit Union must be prohibited from continuing any collection or reporting activities related to this fraudulent account while it is under dispute.

3. Investigation into Navy Federal Credit Unions Non-Compliance : The CFPB should conduct an investigation into Navy Federal Credit Unions non-compliance with federal law and take appropriate enforcement actions.

4. Compensation for Damages : I seek compensation for any financial and emotional damages caused by Navy Federal Credit Unions unlawful reporting of this fraudulent account, which continues to harm my credit and well-being.

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