Consumer complaint received 2022-02-09 00:00:00
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: NAVY FEDERAL CREDIT UNION
State: KS

Complaint narrative:
I had a credit card with Navy Federal Credit Union, currently closed but with a balance.. I have a written agreement for a reduced interest rate and lower payment ; for such agreement to be entered, I was required to close the credit card.. In XX/XX/XXXX, I called and spoke with a representative regarding inability to make that months payment ; he made exception arrangements and forebore that months payment. He indicated that it would still show up as late though, and gave me no additional information. Until this point, I had been making all of my payment obligations in full and timely manner. 

On XX/XX/XXXX, on my way to work as a substitute teacher for a low-income school, I stopped to purchase gas for my vehicle. I was in the middle of nowhere and my gas light was on. I had forgotten to stop the night before on my way home from the same school. My debit card declined at the pump and again in the store. I knew I had {$46.00}. in the account as I had checked the evening before. Upon logging into the app, I found my account balance to be zero and a pending transaction Transfer to Other 46.. It was still too early to call the credit union ; they werent open. I was stranded 20 miles from home and 20 miles from work with no gas and no money to buy gas. 

I called later in the day and I was told that the funds were transferred to satisfy the late payment on the credit card. It required the representative several minutes of research to find what the other meant on my account as there was no reference to why it was drafted. I referenced the agreement entered with the representative the prior week and I was told they dont have to honor any such agreement. They refused to give the funds back or return them to my account. 

They did it again the next day always keeping my bank account balance at zero, taking every penny. Same result : no notice, just garnished my money from the checking account. Again, they refused to return the funds.

No notice. No email or letter whatsoever indicating they were going to or had the authorization to garnish my bank account. No court order nor appointment to give me a chance to dispute the process or find alternative means of meeting the debt obligation.

I informed NFCU that they would never get a penny from me again on this credit card until they righted the wrong and returned the stolen funds from my account. 

On XX/XX/XXXX, I notified my current employer of the bank change. They canceled the XX/XX/XXXX direct deposit to Navy Federal, and once confirmed that they had received the funds back, deposited the paycheck into my new account at my new bank. Meanwhile, even as that direct deposit was on pending status in the navy federal checking account, Navy Federal garnished the entire balance of {$230.00} and transferred it to the credit card. 

On XX/XX/XXXX ; I received notice from my employer that Navy Federal accused me of spending that direct deposit and took it back from my employer. Now my employer is garnishing {$50.00} per paycheck to pay the balance. Some of my paychecks do not even cover that balance while the most I ever earn is {$500.00} ; that is more than any legal amount of garnishment allowed by any court system. I didnt spend that money, and Navy Federal had no legal right to garnish it.

Navy Federal has not changed its debt collection practices as they were required to do so. They continue to harass and illegally garnish bank accounts of its members, even if they have a standing payment arrangement, with no notice, fair warning, or even that it could happen. Then they lied to my employer and took the money from them, forcing my employer to now garnish my paychecks at a balance above and beyond legally allowed as well, also without any court order. 

https : XXXX

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