Consumer complaint received 2025-07-20 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: NAVY FEDERAL CREDIT UNION
State: NC

Complaint narrative:
This enforcement concerns XXXX commercial credit card accounts lawfully administered by the XXXX XXXX XXXX XXXX XXXX : XXXX ending in XXXX, which was used for Trust-operated activity, and another ending in XXXX, a business credit card lawfully issued to XXXX XXXX XXXX XXXX a business entity wholly owned by and operating under the fiduciary authority of the Trust. Both accounts are part of the Trusts secured commercial activity and subject to the laws governing private estates, secured transactions, and lawful tender enforcement. 

Navy Federal Credit Union ( NFCU ) has willfully committed commercial dishonor, conversion, fiduciary breach, and systemic obstruction in relation to these accounts. The account ending in XXXX was issued under NFCUs business credit infrastructure, as confirmed by NFCUs own business portal which welcomed the Trustee to Navy Federal Business Solutions ( see Exhibit C ). The account ending in XXXX was likewise operated under commercial authority of the Trust. 

On XX/XX/year>, the Trust issued XXXX XXXX XXXX XXXX XXXX in full settlement of the alleged obligation on account ending in XXXX, pursuant to [ 31 U.S.C. 5118 ], [ UCC 3-311 ], and [ Public Law 73-10 ]. This instrument was properly issued, lawfully tendered, and delivered by Certified Mail to both NFCUs legal department and its Registered Agent, XXXX XXXXXXXX XXXX. It was not returned, not rejected, and not rebutted. Under [ XXXX XXXX ], this constitutes full discharge of the obligation. 

NFCU has retained the instrument without lawful response and continued to issue billing notices, including a formal letter dated XX/XX/year>, in which NFCU falsely asserted that " the documents you provided do not release you from your obligation, '' despite being in possession of a lawful remittance instrument. This statement constitutes a material misrepresentation of commercial law and was used to justify continued billing, credit reporting, and collection threats. The denial letter, entered into the record as Exhibit D, stands as direct evidence of intentional dishonor, administrative suppression, and commercial coercion. 

NFCU simultaneously stated : We may report information about your account ( XXXX ) to the credit bureaus, while claiming, This is not an attempt to collect a debt, attempting to disclaim liability while threatening reputational harm. These contradictions reveal intent to suppress remedy while extracting under duress. NFCUs refusal to apply lawful payment, while maintaining a faade of compliance, confirms their willful breach of fiduciary duty owed to the XXXX. 
NFCU also triggered a XXXX credit alert acknowledging account status change, explicitly stating : Great Work! You Paid Off Your Account a direct credit report alert generated by NFCU, proving recognition of payment despite ongoing billing ( see Exhibit B ). 
At no time has NFCU produced the [ XXXX ] original contract file requested, nor has it certified whether the alleged obligation was bonded, securitized, or converted. 
The XXXX formally demanded production of the XXXX XXXX original contract file, including the original signed agreement and all related custodial records, pursuant to [ Truth in Lending Act 15 U.S.C. 1635 ] and [ UCC 3-501 ( b ) ( 2 ) ].

NFCU failed to produce the contract, failed to provide any loan-level audit trail, and failed to identify whether any instrument or authorization ever existed with the Trusts consent. This omission constitutes a material breach of duty, and a deliberate suppression of evidence required for lawful presentment and reconciliation. 
NFCU continues to assert that the XXXX remains indebted despite full discharge having been made in good faith and supported by lawful consideration. 
The XXXX further affirms that : No consumer consent was given for the creation or use of the XXXX XXXX name. 
All commercial activity on the accounts was for XXXX or business purposes. 
NFCU has not rebutted prior administrative notices. 
The XXXX has not received lawful clarification of settlement policy under [ 18 U.S.C. 8 ] or [ 31 U.S.C. 5118 ]. 

This constitutes a deliberate and ongoing suppression of lawful remedy and breach of fiduciary duty owed to the secured party XXXX. This action, in itself, caused irreparable damage, from which this XXXX has been recovering to date. 
All rights reserved. Without prejudice. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

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