Consumer complaint received 2025-09-07 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: CO

Complaint narrative:
While serving in the XXXX XXXX, I was a member of Navy Federal credit Union for most of my time in service. I retired in XXXX as a member of Navy Federal credit union I have had multiple loans credit cards checking and savings accounts and automotive loans. Up until XXXX I was never late or defaulted on any payments. After I retired and moved to another state, I continued to keep my checking account with Navy Federal in order to pay my checking line of credit balance, I did open a new checking account with a local bank. I would transfer money electronically from my local bank to Navy Federal credit Union in order to pay my monthly due on the checking line of credit at some point possibly in XXXX Navy Federal had sent me a letter or an email. I dont remember which one stating that I missed a payment on my checking line of credit I reached out to the bank to find out what was going on and they told me that my checking account was frozen. I asked why my account was frozen and how do I fix it? I was never told why the account was frozen except it was possibly due to insufficient funds. I was able to transfer money from my local bank to XXXX XXXX but apparently that did not unfreeze my account so with this going on, I was unable to make electronic transfers from bank to bank in order to pay my monthly bill. I asked Navy Federal via phone calls, how to make these payments I did let them know that I do not have paper checks and if there was another way to transfer the funds, the initial response was that I could transfer money into my savings account with Navy Federal and then make the payments that way I did that for approximately three or four payments until Navy Federal would no longer accept or would no longer allow me to do transfer from my savings account to my checking line of credit to make a payment. So once again, I contacted Navy Federal and tried to figure out why my checking account was frozen why I could not do electronic transfers in order to pay this bill again I was not giving a solution on how to fix it. They recommended that I used XXXX XXXX speed pay I believe is what it was called, so I used XXXX XXXX to make a payment and from what I remember, the funds were deposited into my savings account at Navy Federal instead of being applied to my checking line of credit. Since I was unable to transfer any money from my savings account to make a payment that money stayed in my savings account and I was unable to use that as a payment at some point I ended up transferring that money into my local bank. So I called the bank once again this was still in XXXX or XXXX. Their next recommendation was to send a paper check bank to bank, which I initiated in order to make payments. Once received nfcu put the funds in my savings account and did not apply it towards my checking line of credit bill The memo on the check said for checking line of credit. And while this was all going on, I was receiving letters and email stating that my account was in default in approximately XXXX I drove to the nearest Navy Federal Bank, which was in Colorado XXXX, Colorado and they were not able to help me either. I explained to them the entire story. I told them that my account was frozen that I tried making these payments. I even brought cash with me to try to make a payment there, but they said they could not accept payments because they were corporate office or business office it was not an actual bank, so unable to make payments I did not make payments everything I tried to pay Navy Federal they would not accept or it was unable to be processed and that to this day I dont understand why. in XXXX I believe XXXX Navy Federal sold the account to a collection agency XXXX. that company is now suing me for the balance due on this checking line of credit. I received a summons today. I believe I did everything I could think of to try and make payments on this account. I even joked with my wife how is it that the bank would not accept my money in any form that I tried sending them. I dont believe they should have sold this account. I believe this shouldve been resolved between me and Navy Federal. I dont understand why these issues were not resolved when I was literally begging them to take my money thank you. Im assuming the bank has records of our phone calls and me trying to make these payments unfortunately unfortunately I did not track any of this. At some point, I dont remember when but I know I sent them a money order as well and again that money was put into my savings account not to pay my checking line of credit bill. Even with all the money going into my savings account, the bank would not transfer that money To my checking line of credit once I figured that out I was still able to make a transfer from my savings account to my local bank, which I dont understand how I can do that, but not apply it towards my bill.

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