Consumer complaint received 2025-01-12 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Charged too much interest
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
Subject : Request for Interest Rate Reduction and Reinstatement of Closed Credit Line Dear Navy Federal Credit Union Customer Relations, I am writing to formally request a review of my interest rates and credit line reinstatement. I have been a loyal Navy Federal Credit Union member for over 15 years and have successfully paid off multiple car loans and other accounts with your institution. Ive always tried to manage my finances responsibly, but recent financial challenges and high interest rates have made it difficult to pay off my credit card balances efficiently. I need a new car since the one I have is XXXX XXXX XXXX and has ongoing mechanical issues. Being able to resolve my two concerns would place me in a favorable position to obtain a car loan from NFCU at a fair interest rate. 

Specifically, I have two concerns : 1. XXXX XXXX XXXX XXXXXXXX ( Ending in XXXX ) The interest rate on this card is currently 17.49 %, with a balance of {$22000.00}. I have been making consistent monthly payments of {$600.00}, but over {$300.00} of that amount goes toward interest, leaving little progress toward the principal balance. 

Given my long-standing history as a responsible customer and previous successful loan repayments, I am requesting that the interest rate on this card be lowered to between 4 % and 10 %. A lower rate would allow me to pay off the balance faster and improve my credit utilization ratio, ultimately boosting my credit score. 

XXXX XXXX XXXX ( Ending in XXXX ) This card had a credit limit of {$23000.00}, but it was closed in XX/XX/XXXX due to financial difficulties at the time. I have continued to make payments on this account, and the current balance is {$2300.00}, with an interest rate of 14.49 %. 

Given that I have been paying on this card for nearly 10 years and only have a small balance remaining, I am requesting that Navy Federal reopen this credit line to restore my access to the original {$23000.00} limit. Doing so would reward my loyalty and responsible payment history and improve my overall credit utilization ratio. 

XXXX. Interest Rate Increases I also want to address the interest rate increases on my accounts at the beginning of XXXX. Despite my positive payment history, all my credit card interest rates were increased. This has made it difficult for me to make meaningful progress in paying down my balances. 

As a small business owner, I have had to rely on credit cards to fund my startup. I used my own money and credit cards to bootstrap my business, which is why some of my cards are currently maxed out. However, most of my cards are now at 30 % or below utilization, except for the More Rewards XXXX XXXX, which remains at 90 % utilization due to the high interest rate. 

Fair Resolution Requested To resolve these issues, I am requesting the following : 1. Lower the interest rate on my XXXX XXXX XXXX XXXXXXXX to between 4 % and 10 %. 
2. Reinstate my XXXX XXXX credit line to {$23000.00}. 
3. Review the XXXX interest rate increases and consider adjusting rates based on my loyalty and payment history. 

I want to continue my long-term relationship with Navy Federal Credit Union and avoid having to seek alternative financing options. Lowering my interest rates and reinstating my credit line would help me pay down my debt faster and improve my credit score, allowing me to better manage my financial obligations. 

Thank you for your time and consideration. I look forward to a positive resolution to this matter. 

Sincerely, XXXX XXXX XXXX XXXX

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