Consumer complaint received 2026-05-26 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Paying off the loan
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
I am writing to file an amended formal complaint against Navy Federal Credit Union ( NMLS ID : XXXX ) for their refusal to accept my valid payoff, their failure to provide proper notice, and their initiation of foreclosure proceedings based on false premises and bad faith. Summary of Events : Full Payoff Tendered : On XX/XX/XXXX, I tendered an international bill of exchange/draft/check to Navy Federal as payment in full for my mortgage loan Confirmation and Instruction from NFCU : On XX/XX/XXXX, a representative from Navy Federal called me and confirmed my payment had been received. The representative stated there was a " mistake '' and my instrument was short by {$620.00}. Crucially, the representative gave me XXXX options to cure this shortfall : use my escrow funds or send a second instrument for the remaining amount. This phone call proves that, at this time, Navy Federal was willing to accept my form of payment and was simply negotiating the final amount. Compliance with NFCU 's Instructions : Acting in good faith on their instructions, I sent a second international bill of exchange for {$620.00} on XX/XX/XXXX. This was sent via Registered Mail along with a formal " Notice of Dishonor and Non-Performance '' demanding they confirm the loan was settled. I did exactly what their representative instructed me to do. Secret Reversal and Bad Faith : Despite their initial acceptance and instructions, Navy Federal completely changed its position. On XX/XX/XXXX ( before I even sent the second payment ), I received a letter ( Case ID : XXXX ) falsely stating that " No amounts have been credited '' to my account. This letter improperly classified my payment as a " XXXX XXXX XXXX '' a direct contradiction to their own representative 's actions on XX/XX/XXXX. Failure to Return Payment Instruments : To date, Navy Federal has refused to credit either of my payment instruments and has refused to return them, constituting unjust enrichment. Initiation of Fraudulent Foreclosure : On XX/XX/XXXX, I received a formal " Notice of Default and Intent to Accelerate. '' This notice is predicated on the completely false premise that I failed to make payments due in XX/XX/XXXX. It deliberately ignores my initial payment, the phone call where NFCU confirmed it and gave me instructions, and my subsequent compliance with those instructions. What Navy Federal Has Done Wrong : Breach of Contract and Bad Faith : Navy Federal is in breach of the Deed of Trust. Their actions constitute clear bad faith : they engaged with my payment, gave me instructions to cure a deficiency, and then secretly changed their position and refused to honor either payment. Unfair and Deceptive Acts and Practices ( XXXX ) : Ignoring my payoff attempts and proceeding with foreclosure based on a false narrative is a deceptive practice designed to illegally force me to pay a debt that I have already satisfied according to their own instructions. Contradiction and Misrepresentation : They have misrepresented the facts to me and are now attempting to foreclose based on a timeline of events that they know to be false. What I Want : I am seeking the following resolution : Immediate Cessation of Foreclosure : I demand that Navy Federal immediately cease all foreclosure proceedings and cancel the fraudulent " Notice of Default and Intent to Accelerate '' dated XX/XX/XXXX. Loan Satisfaction : I demand that Navy Federal formally acknowledge that my loan has been paid in full based on the XXXX payment instruments I provided and provide me with a Satisfaction of Mortgage and a Release of Deed of Trust. Return of Payment Instruments : I demand the immediate return of both of my original payment instruments. Correction of Credit Report : I demand that Navy Federal confirm in writing that no negative information has been or will be reported to any credit bureau. Accounting : I demand a full accounting of my loan account showing a XXXX balance as of the date my second payment was received. I have retained copies of all correspondence, including the " Notice of Dishonor and Non-Performance '' and the Affidavit of Mailing dated XX/XX/XXXX, which proves Navy Federal instructed me to send a second payment. I request that the CFPB investigate Navy Federal 's deceptive actions and assist me in resolving this matter promptly.

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