Consumer complaint received 2025-03-25 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
Formal Complaint Against Navy Federal Credit Union I am filing this formal complaint against Navy Federal Credit Union regarding unfair, deceptive, abusive acts and practices I have experience during the handling of multiple credit applications and my checking accounts. More particularly as of lately most of deposits into the account have been coming in from XXXX or XXXX. When the funds hit the account the balance displayed is positive but once these deposits settle they settle negative creating an overdraft. There is also a message posted at the top of my account that states in bold letters The account information displayed below is for informational purposes only, not an attempt to collect debt. This is very misleading and I have serious concerns related to potential securities fraud and tax evasion, in violation of the Securities Exchange Act, as well as breaches in my consumer protection rights.

My checking account has Established with Navy Federal in or around XXXX, I have applied for personal credit multiple times, given my established relationship with Navy Federal Credit Union. However, It has come to my attention that my credit applications and checking account were securitized by Navy Federal Investment Services and that they were involved in trading activities using my securities. Furthermore, I have discovered that Navy Federal operates under a XXXX ( c ) ( 3 ) designation as a non-profit organization, yet I have been charged late and overdraft fees. According to the National Credit Union Administration ( NCUA ), overdraft fees should are insured and should not be charged. Additionally the NCUA states that dividends and interest are periodically paid out on these accounts as well.

Additionally, the denial of my credit applications raises serious concerns under 15 U.S. Code 1691, which prohibits discrimination in credit decisions. Yet, Navy Federal continues to use discrimination against their customers. I have previously sent a letter to the head of the legal department, requesting documentary evidence regarding the rationale for the overdraft fees and the repeated denials of credit, but I have yet to receive a satisfactory response.

In accordance with 16 CFR 433.1.2.3, I formally revoke consent for the collection of interest on my checking account contracts and credit applications. I also request that all payments made be refunded, as I am the investor, not the creditor or finance company, as per the contract governing these agreements.

Enclosed I have provided Navy Federal Investments Services X-17A-5 PART III. In the enclosed document admits Navy Federal Credit Union admits to operating as Navy Federal Investment Services, LLC and Navy Federal Financial Group, LLC ( trustee company ), which, under the Trust Indenture Act of 1939 and the Securities Purchase Agreement Standard Terms for Credit Unions, is a violation of regulatory standards.

The actions taken by Navy Federal Credit Union, including the improper charging of overdraft fees and the unjust denial of my credit applications, improper withdrawing {$800.00} for a debt that I did not owe back in XXXX of XXXX all have caused significant harm to my financial well-being and have had a negative impact on my credit report. This, in turn, is hindering my ability to pursue personal, family, and household financial goals, including access to credit and employment opportunities. 

I request immediate action to address these issues and seek a resolution in accordance with relevant consumer protection laws. I request my checking account to be reopened and all overdraft item fees and junk fees to be credited back to the account. Further I demand the repayment of the {$800.00} that Name Federal has stolen from my account without my consent seeing that the alleged debt Navy Federal claims that I owed has already been prepaid via a XXXX and Securitization through Navy Federal Investment Services and Pershing LLC. The credit card that Navy Federal Alleges that I owe state that it has been charged off. Which means that Navy Federal has sold said account to another agency without my consent and has profited.

Lastly Navy Federal is in violation of their Banking Charter. Please see the enclose banking charter.

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