Consumer complaint received 2026-04-30 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
On XX/XX/XXXX Navy Federal Credit Union froze my checking account based on a XXXX XXXX XXXXXXXX XXXX related to case number XXXX filed in XXXX XXXX XXXX XXXX XXXX. My account remains frozen as of XX/XX/XXXX over 4 months later. BACKGROUND : XXXX XXXX XXXX XXXXXXXX XXXX was issued XX/XX/XXXX by XXXX XXXX XXXX XXXX XXXX XXXX based on an original judgment from XX/XX/XXXX. The Writ was served to Navy Federal on XX/XX/XXXX. My account was frozen XX/XX/XXXX. Navy Federal sent notice same day as freeze via regular mail only. A {$100.00} service fee was charged XX/XX/XXXX. LEGAL VIOLATIONS : VIOLATION 1 - EXPIRED WRIT Virginia Code Section XXXX The Writ of XXXX XXXX was issued XX/XX/XXXX. Under Virginia Code Section 8.01-478 the XXXX expired 90 days after issuance on approximately XX/XX/XXXX. Navy Federal continues to hold my funds approximately 3 months past the legal expiration date with absolutely no legal authority. Continuing to hold funds past XXXX expiration violates Virginia Code Section 8.01-478 and constitutes unlawful retention of funds. VIOLATION 2 - WRONG ADDRESS ON WRIT Virginia Code Section 8.01-501 The Writ listed my address as XXXX XXXX XXXX XXXX XXXX XXXX VA XXXX which is my old address. My correct address is XXXX XXXX XXXX XXXX VA XXXX. I was never properly served with the Writ in violation of Virginia Code Section 8.01-501. Navy Federal accepted and acted on a Writ containing incorrect identifying information. VIOLATION 3 - NO CONFIRMED NOTICE Electronic F und Transfer Act 15 U.S.C. Section 1693 Regulation E 12 C.F.R. Section 1005 Navy Federal sent notice via regular mail only on XX/XX/XXXX the exact same day my account was frozen. Notice was never sent via certified mail with proof of delivery. I never received this notice. Under the Electronic Fund Transfer Act 15 U.S.C. Section 1693 and Regulation E 12 C.F.R. Section 1005 financial institutions are required to provide adequate notice of account restrictions. Sending notice via regular mail same day as freeze does not constitute adequate notice. VIOLATION 4 - SERVICE FEE CHARGED WITHOUT CONFIRMED NOTICE Electronic Fund Transfer Act 15 U.S.C. Section 1693f On XX/XX/XXXX Navy Federal charged a {$100.00} service fee only 2 days after freezing my account. Notice was sent via regular mail same day as freeze. Regular mail takes 3-5 business days minimum. The fee was charged before I could have possibly received any notice. Under 15 U.S.C. Section 1693f charging fees without proper notice violates my rights under the Electronic Fund Transfer Act. VIOLATION 5 - ONLINE ACCESS COMPLETELY REMOVED Electronic Fund Transfer Act 15 U.S.C. Section 1693b Regulation E 12 C.F.R. Section 1005 Navy Federal completely removed my online account access on XX/XX/XXXX. Under 15 U.S.C. Section 1693b and Regulation E 12 C.F.R. Section 1005 financial institutions can not restrict account access beyond what is legally authorized. XXXX XXXX XXXX XXXX XXXXXXXX does not authorize complete removal of online account access. I have had absolutely no online access for over 4 months with no legal basis. VIOLATION XXXX - REFUSED PHONE COMMUNICATION Virginia Consumer Protection Act Section 59.1-196 Navy Federal refused all phone communication regarding this matter for the past month forcing me to visit a branch in person as the only means of resolution. Under Virginia Consumer Protection Act Section 59.1-196 this constitutes an unfair and deceptive business practice creating deliberate barriers to resolution. VIOLATION 7 - VOICE RECORDING REQUIREMENT Virginia Consumer Protection Act Section 59.1-196 Consumer Financial Protection Act 12 U.S.C. Section 5531 Navy Federal required a voice recording as a condition of receiving phone assistance. When I refused I was told I must visit a branch. Under Virginia Consumer Protection Act Section 59.1-196 and Consumer Financial Protection Act 12 U.S.C. Section 5531 this constitutes an unfair abusive and deceptive practice used as leverage to deny me assistance. VIOLATION 8 - HOLDING FUNDS PAST WRIT EXPIRATION Virginia Code Section 8.01-478 As of XX/XX/XXXX Navy Federal continues to hold my funds approximately 3 months past the XX/XX/XXXX expiration of the Writ. Under Virginia Code Section 8.01-478 Navy Federal has no legal authority to continue holding these funds past expiration. This constitutes unlawful conversion of my funds. VIOLATION 9 - INVALID UNDERLYING JUDGMENT Virginia Code Section 8.01-296 Virginia Code Section 8.01-322 The underlying judgment from XX/XX/XXXX was obtained without proper service in violation of Virginia Code Sections 8.01-296 and 8.01-322. I was never served with the original lawsuit. I have filed a Motion to Vacate the judgment scheduled for hearing on XX/XX/XXXX in XXXX XXXX XXXX XXXX XXXX case number XXXX. VIOLATION 10 - TWO ACCOUNTS FROZEN Electronic Fund Transfer Act 15 U.S.C. Section 1693 Navy Federal froze two separate accounts based on expired Writ with no legal authority. Account ending XXXX had {$16.00} restricted. Account ending XXXX had {$0.00} restricted. Freezing multiple accounts based on expired Writ violates 15 U.S.C. Section 1693. TIMELINE OF EVENTS : - XX/XX/XXXX : Original judgment obtained without proper service - XX/XX/XXXX : XXXX XXXX XXXX XXXX issued - XX/XX/XXXX : Writ placed with process server - XX/XX/XXXX : Writ served to XXXX XXXX - XX/XX/XXXX : Account frozen and notice sent via regular mail same day - XX/XX/XXXX : Navy Federal sent answer to creditor showing only {$16.00} available - XX/XX/XXXX : {$100.00} service fee charged - XX/XX/XXXX : Writ expired after 90 days - XX/XX/XXXX : Account still frozen 3 months past expiration DAMAGES SUFFERED : 1. Service fee : {$100.00} Charged XX/XX/XXXX without confirmed notice in violation of 15 U.S.C. Section 1693f 2. Travel expenses : {$400.00} Forced to make approximately 16 branch visits over 4.5 months at 3-4 trips per month due to : - Complete removal of online account access for 4.5 months- Refused phone communication for approximately one month - Forced branch visits as only means of resolution In violation of 15 U.S.C. Section 1693b and Virginia Consumer Protection Act Section 59.1-196 3. Credit card interest : {$110.00} Charged 18 % interest on credit card balance since XX/XX/XXXX due to payment difficulties caused by unlawful account freeze 4. Credit card late fee : {$20.00} Charged late fee due to payment difficulties caused by Navy Federals unlawful account freeze 5. Credit score damage : {$5000.00} Credit score dropped from XXXX in XX/XX/XXXX to XXXX currently as direct result of Navy Federals unlawful actions crossing critical threshold from fair to poor credit affecting ability to obtain loans housing employment and reasonable insurance rates 6. EFTA statutory damages : {$6000.00} Under 15 U.S.C. Section 1693m Navy Federal is liable for statutory damages of up to {$1000.00} per violation. Navy Federal committed at least 6 clear violations of the Electronic Fund Transfer Act including : - Failure to provide confirmed notice violating 15 U.S.C. Section 1693 - Unlawful removal of online access violating 15 U.S.C. Section 1693b - Holding funds past Writ expiration violating Virginia Code Section 8.01-478 - Refusing phone communication violating Virginia Consumer Protection Act Section 59.1-196 - Requiring voice recording violating 12 U.S.C. Section 5531 - Charging fees without confirmed notice violating 15 U.S.C. Section 1693f 7. Punitive damages : {$3000.00} Under Virginia Consumer Protection Act Section 59.1-204 punitive damages are appropriate because Navy Federal acted willfully and deliberately in : - Holding funds 3 months past Writ expiration - Refusing all phone communication - Removing online access without legal authority - Charging fees before notice could arrive - Creating deliberate barriers to resolution 8. Emotional distress : {$2500.00} Suffered significant emotional distress from XX/XX/XXXX through present including inability to access own funds for 4.5 months financial uncertainty anxiety stress and impact on daily life 9. Time and inconvenience : {$750.00} Multiple branch visits numerous phone calls court filings research time and expenses over 4.5 months TOTAL DAMAGES DEMANDED : {$17000.00} LEGAL BASIS FOR DAMAGES : - Electronic Fund Transfer Act 15 U.S.C. Section 1693m - actual and statutory damages- Virginia Consumer Protection Act Section 59.1-204 - actual punitive and attorney fees- Consumer Financial Protection Act 12 U.S.C. Section 5531 - unfair deceptive abusive practices - Virginia Code Section 8.01-478 - unlawful retention past Writ expiration - Common law conversion - unlawful retention of funds without legal authority I AM REQUESTING : 1. Immediate release of all held funds 2. Immediate restoration of online account access 3. Immediate restoration of CUCARD and Check Card access 4. Return of {$100.00} service fee 5. Compensation for all damages totaling {$17000.00} 6. Full investigation of Navy Federals practices 7. Confirmation that no funds will be transferred to creditor SUPPORTING DOCUMENTS ATTACHED : - XXXX XXXX XXXXXXXX XXXX showing wrong address and XX/XX/XXXX issue date - Navy Federal freeze letter dated XX/XX/XXXX - Navy Federal answer to creditor dated XX/XX/XXXX - Court records showing case XXXX - Bank statement showing {$100.00} service fee XX/XX/XXXX - Motion to Vacate hearing scheduled XX/XX/XXXX

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