Consumer complaint received 2026-03-18 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Banking errors
Company: NAVY FEDERAL CREDIT UNION
State: PA

Complaint narrative:
Subject Formal Consumer Complaint Violations of the Electronic Fund Transfer Act and Unfair/Deceptive Practices by Navy Federal Credit Union To Whom It May Concern, I am submitting this formal complaint against Navy Federal Credit Union for significant violations of federal consumer protection laws, including the Electronic Fund Transfer Act ( EFTA ) , 15 U.S.C. 1693 et seq., and its implementing regulation, Regulation E ( 12 C.F.R. Part 1005 ), as well as for engaging in unfair and deceptive acts or practices. Factual Background and Timeline On XX/XX/XXXX, I contacted Navy Federal Credit Union regarding multiple unexplained account adjustments that resulted in the deduction of funds. Navy Federal was unable to identify the originating department, provide any lawful justification, or account for where the funds were transferred. I was informed that the only way to obtain this information would be to successfully appeal a permanent security restriction placed on my account. My appeal was denied without explanation or due process. My account was initially frozen and then placed into a credits only restricted status on XX/XX/XXXX, where it remains to date. Navy Federals XXXX department has refused to provide any written notice explaining the basis for the freeze or restriction, despite repeated requests. The only informal explanation provided suggested the restriction may be related to dispute claims being resolved in my favor. On XX/XX/XXXX, I reported that {$1800.00} was missing from my account. A case was opened and forwarded for investigation. On XX/XX/XXXX, Navy Federal concluded that no funds were missing. However, later that same day, a representative confirmed that {$1800.00} from successfully resolved dispute claims had not been credited to my account. After approximately four hours on the phone, Navy Federal identified the issue as an internal error involving a dispute claim that had been improperly closed without investigation. Navy Federal subsequently issued a corrective credit of {$1800.00}. Despite this admission of error and correction, I am still being denied access to these funds, and the security department has refused any further assistance. Additionally, beginning XX/XX/XXXX, unauthorized electronic fund transfers occurred on my account. Although I promptly disputed these transactions, Navy Federal failed to issue provisional credit during the investigation period. These disputes were not resolved until XX/XX/XXXX. During this time, I incurred approximately {$350.00} in overdraft and related fees a month due to the lack of access to funds. Despite all disputes being resolved in my favor, these fees have not been refunded. I was told I must appeal the security restriction to recover these fees, but all appeals have been summarily denied. Legal Violations Navy Federal Credit Unions actions constitute multiple violations of federal law, including but not limited to : Failure to Conduct a Reasonable Investigation ( 12 C.F.R. 1005.11 ( c ) ) Navy Federal admitted that at least one dispute was closed without investigation, directly violating its obligation to conduct a good-faith, reasonable investigation of reported errors. Failure to Provide Provisional Credit ( 12 C.F.R. 1005.11 ( c ) ( 2 ) ) Financial institutions are required to provisionally credit a consumers account within 10 business days of receiving notice of an error ( 20 days for new accounts ) if the investigation is not complete. Navy Federal failed to provide any provisional credit, causing substantial financial hardship. Failure to Timely Correct Errors ( 12 C.F.R. 1005.11 ( c ) ( 1 ) ) Errors must be resolved within prescribed timeframes ( generally 45 days ). The extended delay from XX/XX/XXXX through XX/XX/XXXX, coupled with admitted mishandling, constitutes noncompliance. Failure to Provide Required Notices ( 12 C.F.R. 1005.11 ( d ) ) Navy Federal has refused to provide written explanations of investigation results, account restrictions, or error determinations, depriving me of my right to transparency and the ability to meaningfully challenge their decisions. Unfair and Deceptive Acts or Practices ( 12 U.S.C. 5531 ; Dodd-Frank Act ) The unexplained removal of funds, refusal to account for transactions, denial of access to legitimately owed funds, and conditioning basic account information on a denied appeal process constitute unfair, deceptive, and abusive practices. Improper Assessment of Fees The overdraft and related fees incurred were a direct result of Navy Federals failure to comply with Regulation E requirements. Retaining these fees despite error resolution in my favor is unjust enrichment and an unfair practice. Harm and Impact As a direct result of Navy Federals actions and noncompliance : I was deprived of access to my funds for an extended period. I suffered financial hardship due to the absence of provisional credit. I incurred approximately {$350.00} a month in avoidable overdraft and related fees. I continue to be denied access to funds that Navy Federal has acknowledged are rightfully mine. I have been denied transparency and due process regarding account restrictions and transactions. Requested Relief I respectfully request that your agency investigate this matter and compel Navy Federal Credit Union to : Immediately restore full access to my account and all funds, including the {$1800.00} credit. Provide a complete written accounting of all account adjustments, including the origin, authorization, and destination of all deducted funds. Issue a full refund of all overdraft and related fees incurred as a result of their noncompliance. Provide all required written notices and documentation related to dispute investigations and account restrictions. Implement corrective measures to ensure compliance with the Electronic Fund Transfer Act and Regulation E. Given the severity and pattern of violations, I also request that this matter be reviewed for potential enforcement action. Please contact me if additional documentation or evidence is required. I am prepared to provide account records, call logs, and any supporting materials necessary to substantiate this complaint. Sincerely, XXXX XXXX

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