Consumer complaint received 2025-08-20 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: NAVY FEDERAL CREDIT UNION
State: NC

Complaint narrative:
Cover Note ( Plain Language ) : My phone was stolen in XX/XX/year> while I was in XXXX, GA. I reported the fraud to my bank within three days, but instead of helping me, they closed my account in XX/XX/year>. No money was ever taken, yet they still denied my appeal. I feel this was unfair, and I would like my account reinstated if possible so I can continue banking with them. 

Issue : Fraudulent activity and unfair account closure after phone theft. 

What Happened : In XX/XX/year>, while I was in XXXX, GA, my phone was stolen. Within three days, I discovered fraudulent activity on my account and immediately reported it to the bank. Instead of working with me to resolve the matter, the bank closed my account in XX/XX/year> without giving me the opportunity to properly present my side of the story. 

I am a resident of XXXX XXXX, and I acted responsibly by reporting the theft and cooperating with the bank. Importantly, the scammers were unsuccessful in obtaining any funds from my account. Despite this, the bank closed my account and later denied my appeal when I challenged the decision. 

Why This Is Unfair/ Violates Consumer Protections : Under the Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq., and Regulation E ( 12 C.F.R. Part 1005 ), banks are required to conduct a fair and timely investigation when consumers report unauthorized transactions. Consumers must be given an opportunity to provide evidence and receive the results of the investigation. 

The bank failed to comply with these protections by : Closing my account without fully investigating my claim. 

Denying my appeal without providing a reasonable explanation or evidence. 

Penalizing me, even though no financial loss occurred to the bank. 

This has caused me harm, including the loss of access to a banking relationship, potential negative reporting to XXXX  or credit bureaus, and reputational damage, which are consequences I should not suffer for being the victim of a theft and attempted fraud. 

Resolution Requested : That the bank reinstate my account so I may continue my banking relationship as a customer in good standing.

If reinstatement is not possible, I request assistance in removing any negative records associated with this incident from XXXX  or credit bureaus.

A written explanation of the banks investigation process, including why my appeal was denied despite no financial loss.

Assurance that the bank complies with its obligations under the Electronic Fund Transfer Act and Regulation E by properly investigating reports of fraud. 

Summary : I reported fraud in a timely manner after my phone was stolen. The scammers obtained nothing, yet I was punished with account closure and a denied appeal. I believe the banks actions were unjust, harmful, and in violation of federal consumer protection laws. My primary request is that my account be reinstated so I can continue my relationship with the bank. I respectfully request that the CFPB intervene to ensure this matter is corrected.

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