Consumer complaint received 2016-10-17 00:00:00
Product: Bank account or service — Checking account
Issue: Account opening, closing, or management — 
Company: NAVY FEDERAL CREDIT UNION
State: MD

Complaint narrative:
On XXXX/XXXX/2016 my wife and I opened a checking account at the Navy Federal Credit Union in XXXX, MD. ( access number and checking acct number available upon your request ) My wife 's and my identification was checked, as would be expected, as we opened the account. A {$50.00} referral signup referral bonus was offered which I accepted. 

I immediately arranged for a transfer of funds from my XXXX XXXX XXXX account and set up automatic payments from my employer and retirement to go directly to Navy Federal. My wife and I also applied for a home equity loan for {$60000.00} at that time. I also logged into their internet access system to monitor my accounts. 

But when I went to check on my account to ensure the money had transferred correctly ( I knew it had been withdrawn from XXXX and wanted to ensure it was deposited in Navy Federal ) I learned I was locked out of my account " for security reasons ''. I immediately called the service number but was told the security branch had locked my account and would not even accept inquiries about that action for 5 business days. I explained that I had a mortgage payment soon due, as well as other bills. I was told there was nothing they could do about that. Over the course of the next few days I tried to call customer service, but soon after I provided my account number, I was disconnect or put on perpetual holds at least four times. Clearly, my account had been flagged, for some reason still unknown to me. 

On XX/XX/XXXX I received a letter from Navy Federal that my home equity loan was denied due to my " poor credit performance ''. In the same letter it stated that my rating was XXXX and my wife 's was XXXX. 

I waited a week and went to the branch office to inquire as to why my account was locked and why my loan was denied. I was advised that it could not be determined but that the asst manager would follow up and find out. I asked what credit rating was required for a home equity loan and described the letter I 'd received. She was quite surprised and said she 'd check on that. Four days later, on XXXX/XXXX/2016 the asst manager left a phone message on my phone stating " We took care of YOUR problem and your account is not unlocked. '' ( ... of my problem! ) There was no news regarding the loan. 

I sent an electronic message to Navy Federal, via their website, to ask why the account had been locked, why I was denied the equity loan, and where the {$50.00} signup bonus was that should 've been applied to my account. I was told the {$50.00} bonus was entered into the computer incorrectly so it would be about 2 weeks to correct, and to call a customer service number for the other XXXX questions. 

So today I called. I was told that accounts are often locked for new customers ... " That 's a common practice we do on some accounts, for your protection. '' I explained that caused difficulty in making mortgage and other payments. " Well, that 's just the way we do it. '' I was advised. The customer service rep had no idea why the equity loan was denied. 

The arbitrary way my account was locked and the way I was prohibited from even getting only the Navy Federal website to monitor my account seem like an odd way to run a financial institution.

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