Consumer complaint received 2024-04-26 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: FL

Complaint narrative:
I was in contact with Navy Federal initially on XX/XX/XXXX after noticing that my tax refund would be deposited in my checking account which was closed in XXXX of the previous year, XXXX. I was told by a Navy Federal rep that the account was closed and the funds would be rejected and sent back to the IRS. However, the funds were deposited or forced into my savings account which was still open with a balance of XXXX  XXXXThe deposit amount was {$3800.00}. The funds were immediately disbursed among my charged off accounts that I had with the bank. Navy Federal was made aware prior of my intent to file bankruptcy due my XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX XXXX who lived for XXXX  months and eventually passed. In addition to going through a divorce. This caused me to have to walk away from my employer of 13 years and I could no longer keep up with my monthly unsecured obligations. I retained an attorney and provided Navy 's information. Upon, contacting Navy with efforts to refund the money to me or the depositing institution ( IRS ), I was denied on many levels. I expressed to many representatives of my dire need of the funds to be able to keep my home in addition to paying some utilities. I finally spoke to a supervisor in the Charge of department. He stated that he can use the funds to settle my accounts and he could refund about {$400.00}, which I was a little hesitant because of the 1099C consequence and I already have an attorney for bankruptcy. I told him will return call. I waited about two weeks trying to search different avenues for the recovery of funds. In this wait I contacted Navy several times to ask questions and also provide me with documentation to reflect my account being closed to have proof that the funds should have been rejected and returned to me. They have refused. So after feeling helpless and desperate, I decided to take them up on the offer to settle. I was told that I would have my checking account reopened after settling my accounts, checking account have a {$0.00} balance and I get up arrangements for the other accounts. My checking account was reopened immediately. I get a call the next day from the same rep stating that they have decided to close my account. I was transferred to a supervisor who said it was done in error and she was in agreement that I did everything necessary to open the account. She reactivated my debit card and told me everything was okay. The very next day, I opened the app only to see the there was longer a checking account. was told that the back office made a decision to close my account. I express how unfair the whole process has been and acknowledged that I owe the bank but they are not holding their part of the deal. I feel as though I was mislead on several occasions from the onset of noticing the funds will be deposited into a closed account.

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