Consumer complaint received 2025-11-11 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Title loan
Issue: Charged fees or interest you didn't expect — 
Company: NAVY FEDERAL CREDIT UNION
State: NC

Complaint narrative:
I recently paid off a loan with Navy Federal Credit union. The loan was a personal loan with collateral ( RV ). Prior to paying off the loan, I inquired about a XXXX  day payoff figure ( XXXX ) ( Attached ). Upon receiving that figure ( {$31000.00} ), I realized it was nearly {$2000.00} more than what was showing as the outstanding balance on my online account as well as the amortization statement ( {$29000.00} ) ( Attached ) that they eventually showed me ( XXXX ). All show that I was up to date with all interest payments and show my principal as {$29000.00}. When I inquired about why this was the case, I was told that it was due to accrued interest from when I didnt make payments. There has never been a time where I didnt make payments precisely when they were due, so this came as a surprise to me, but since I was selling the RV, I didnt have time to fight it and NFCU was not giving me a reasonable response as to why I was being charged this interest. Today I did some more research and found a Consumer Loan Bill for the month of XXXX ( attached ). On that bill it said that the last payment was received XXXX and the next payment was due XXXX. I did not ask for a relief period or anything of the sort, but I did know that I had been paying extra on the bill for several months, so I assumed that they wanted me to stop paying for XXXX  months in order to catch up, but this was not on the bill, nor did anyone contact me to say why the bill was due XXXX  months later. At no point was I told that any interest was accruing, just that the Regular Monthly Payment I was responsible for was {$380.00}. Every bill on every loan I have ever paid has had a Regular Monthly Payment and that regular monthly payment has always included the interest for the period since the last payment. Since I hadnt requested a break in payments, why should I have assumed that no accrued interest was being added to the regular monthly payment? Every other payment I have ever made on this loan had the interest included, so why shouldnt I have assumed that the extra money I was paying all those months had gone to cover the interest? When I called NFCU today to explain this, they couldnt tell me how this happened. I asked to be escalated and was escalated to XXXX ( Supervisor, Consumer Loans ). I re-explained everything as per what I have written above and rather than explain to me how I received a bill that was due XXXX  months after my previous bill and how this bill supposedly did not include the interest that was accrued since the last payment, he explained to me how accrued interest works. I know how accrued interest works. I just dont know how they got away with charging me with {$2000.00} in accrued interest without telling me and how they sent me a bill that was due XXXX  months after the previous bill, or why a Regular Monthly Payment all of the sudden doesnt include the interest payment. If the excess payments were applied properly and the billing was done appropriately, then I had already paid that interest. I have all documentation to support this claim attached. XXXX ( Supervisor, Consumer Loans ) would not provide his last name or employee id, so I asked that he notate in my account the discussion we had. Can someone please help me escalate this within NFCU so that I can recoup the interest that I overpaid?

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