Consumer complaint received 2026-04-02 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Banking errors
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
I. INTRODUCTION AND PURPOSE OF THIS COMPLAINT This complaint is filed as a new, comprehensive formal complaint against Navy Federal Credit Union ( NFCU ) following the inadequate and factually inaccurate response Navy Federal provided to CFPB Case No. XXXX. The prior complaint was closed on XX/XX/XXXX after I disputed Navy Federal 's response, indicating that their response did not address my issues, I did not understand their response, and they did not do what they said they would do. This complaint addresses multiple serious federal violations including unauthorized electronic fund transfers, systemic internal accounting errors, retaliatory conduct, denial of legally required documentation, and the improper closure of my accounts during an active dispute period. The total financial harm I have suffered is substantial and has resulted in the depletion of inherited funds, returned payments, inability to pay essential bills, and significant financial instability. XXXX. BACKGROUND AND TIMELINE I established membership with Navy Federal Credit Union on XX/XX/XXXX. Beginning in XX/XX/XXXX, I noticed unauthorized and fraudulent transactions on my accounts. The following is a summary of key events : XX/XX/XXXX : Membership established with NFCU XXXX XXXX : Unauthorized transactions begin appearing on accounts XX/XX/XXXX : First fraud claims filed XX/XX/XXXX : Inheritance funds of {$98000.00} deposited via bank wire into savings account XXXX XXXX XXXX : Unauthorized transfers from savings to checking account begin, exposing inheritance funds to fraudulent debit card activity XX/XX/XXXX : {$2700.00} money order deposit NFCU text message confirmed available balance of {$2900.00} ; however, statement shows a completely different balance, constituting a documented three-way discrepancy between text notification, ATM receipt, and statement XX/XX/XXXX : AppFolio/Salesloft data breach discovered, exposing XXXX XXXX XXXX address, date of birth, and Social Security number to unauthorized actors XX/XX/XXXX : Additional fraud claims filed XX/XX/XXXX : Additional fraud claims filed XX/XX/XXXX : Navy Federal sends threatening letter warning me that continued fraud claims could result in XXXX suspension of debit card privileges sent while I was a confirmed data breach victim XX/XX/XXXX : XXXX formal data breach notification letter received XX/XX/XXXX : Granite School District data breach also exposed my personal information XX/XX/XXXX : I submitted formal Second Appeal with full evidence packet by email to multiple Navy Federal departments including Legal, Compliance, Executive Relations , and Fraud Operations XX/XX/XXXX : Navy Federal responds to prior CFPB complaint response is factually incomplete and fails to address core issues XX/XX/XXXX : I disputed Navy Federal 's CFPB response, marking all three questions as 'No ' XX/XX/XXXX : CFPB complaint closed without resolution III. SPECIFIC VIOLATIONS AND EVIDENCE A. Regulation XXXX Violations Failure to Conduct Lawful Investigation Under 12 C.F.R. 1005.11, Navy Federal is required to investigate error notices within XXXX business days, provide provisional credit where applicable, and furnish written explanation of findings including the documents relied upon. Navy Federal has violated each of these requirements : Navy Federal closed my dispute in approximately XXXX days without conducting a good-faith review or requesting additional information from me Navy Federal claimed I did not answer 'XXXX questions ' but no such form or questionnaire was ever provided to me Navy Federal 's denial letters stated 'you have the right to request the documentation used in making this determination ' I requested this documentation in writing and it was never provided, in direct violation of Regulation E Navy Federal 's stated reasons for denial 'you benefited financially ' and 'you authorized and/or participated " are conclusory allegations with no factual support or documentation provided The use of 'and/or ' in the denial language demonstrates that Navy Federal did not conduct a specific investigation but rather applied a generic template denial B. Documented Balance Discrepancies Internal Accounting Failures The following discrepancies are documented with physical ATM receipts, NFCU text message notifications, and bank statements. These discrepancies exist independent of any fraud claims and demonstrate a systemic internal accounting failure within Navy Federal 's ledger and statement generation systems : Discrepancy 1 XX/XX/XXXX ( Statement XXXX ) : ATM receipt ledger balance : {$52000.00} ATM receipt available balance : {$51000.00} Statement Page XXXX, Line XXXX balance : {$50000.00} Statement Page XXXX, Line XXXX balance : {$50000.00} XXXX different figures for the same account on the same date unexplained difference of over {$2100.00} Discrepancy XXXX XX/XX/XXXX : ATM receipt shows : {$1300.00} Statement Page XXXX, Line XXXX : {$2900.00} Statement Page XXXX, Line XXXX : {$2900.00} Statement Page XXXX, Line XXXX : {$2700.00} Balance changing across XXXX consecutive lines with no corresponding posted transactions Discrepancy XXXX XX/XX/XXXX : ATM receipt shows : {$4900.00} Statement Page XXXX, Line XXXX : {$3600.00} Unexplained difference of {$1200.00} Discrepancy XXXX XX/XX/XXXX ( Statement XXXX ) : XXXX XXXX XXXX ATM receipt dated XX/XX/XXXX XXXX XXXX XXXX, account ending XXXX : Receipt Ledger Balance : {$48000.00} Receipt Available Balance : {$46000.00} Statement Page XXXX, Line XXXX : {$47000.00} XXXX different figures {$1900.00} gap between ledger and available on the same receipt Discrepancy XXXX XX/XX/XXXX ( {$2700.00} deposit ) : NFCU text message ( from short code XXXX, XX/XX/XXXX at XXXXXXXX XXXX XXXX ) : " {$2700.00} was deposited into your acct end. in XXXX. As of XX/XX/XXXX at XXXX XXXX XXXX the avail. bal. is {$2900.00} ' ATM receipt available balance : {$2900.00} Statement Page XXXX, Line XXXX : {$4600.00} Statement Page XXXX, Line XXXX : {$1200.00} Navy Federal 's own text message contradicts their own statement this is documented in their system In their CFPB response, Navy Federal attempted to explain balance discrepancies by referencing their transaction posting order policy. This explanation is wholly inadequate and factually inapplicable because posting order does not explain why the ledger balance and available balance differ on the same receipt at the same moment, nor why the receipt balance differs from the statement balance for the same account on the same date. C. Unauthorized Transfers From Savings Account Following the deposit of my inheritance funds of {$98000.00} on XX/XX/XXXX, multiple large transfers were made from my savings account ( XXXX ) to my checking account that I did not initiate or authorize. These unauthorized transfers systematically moved my inherited funds from savings into checking where they were then exposed to fraudulent debit card activity. The pattern of transfers occurring in rapid succession in large round amounts is consistent with unauthorized account access rather than legitimate member-initiated transfers. XXXX XXXX Transactions My bank statements contain multiple instances of identical transactions posting on the same date for the same amount, which I have documented and flagged. Examples include duplicate XXXX XXXX Balance charges on the same day, duplicate XXXX XXXX charges, and duplicate XXXX charges. Navy Federal 's own text fraud alert system flagged card ending in XXXX for suspicious transactions including XXXX XXXX XXXX ( {$390.00} ) on XX/XX/XXXX and XXXX ( {$3.00} ) on XX/XX/XXXX, yet these same transactions were used as evidence against me in the denial. E. Multiple Unauthorized Card Numbers and Account Access During the dispute period my Navy Federal profile had unauthorized phone numbers and accounts linked to it that I did not add. Multiple debit card numbers were active simultaneously including cards XXXX, XXXX, XXXX, XXXX, XXXX, XXXX, and XXXX appearing across statements in the same period. I received notifications of my card numbers being linked to XXXX accounts that are not mine. I was also informed that someone bypassed Navy Federal 's voice recognition system to gain access to my account, which Navy Federal 's security protocols should have prevented. F. Account Restriction During Active Dispute Navy Federal restricted my access to my account, statements, and transaction details during the period when fraudulent charges were occurring. This restriction directly prevented me from properly identifying, documenting, and disputing the unauthorized charges. This is particularly egregious because Navy Federal then used my inability to provide detailed documentation as justification for denying my claims. G. Retaliatory Threat Letter On XX/XX/XXXX, while I was a confirmed victim of XXXX separate data breaches and while my fraud claims were actively pending, XXXX XXXX sent me a threatening letter warning that I could have my debit card privileges suspended for up to XXXX years for filing 'suspicious claims. ' This letter was sent to both of my known addresses on the same date. This conduct is retaliatory, coercive, and constitutes an unfair, deceptive, and abusive act or practice under CFPB UDAAP authority, as it was designed to discourage me from exercising my federally protected right to dispute unauthorized transactions. H. Data Breaches and Compromised Identity I was the victim of XXXX documented data breaches during the period of fraudulent activity : XXXX XXXX XXXX data breach XX/XX/XXXX, exposing personal identifiable information AppFolio/Salesloft data breach discovered XX/XX/XXXX, formally notified XX/XX/XXXX ; breach exposed my name, address, date of birth, and Social Security number Navy Federal 's investigation made no attempt to consider whether my compromised identity from these data breaches contributed to the unauthorized account access. A proper Regulation E investigation would have considered this context. I. Merchant Refunds Not Credited XXXX formally processed a payment dispute for Full Self-Driving ( Supervised ) charges and confirmed in writing that the bank is responsible for refunding the original payment. Navy Federal has not processed or credited this refund to my account. J. Account Closure During Active Dispute Navy Federal closed my accounts during the period of active dispute and regulatory complaint, leaving both my checking and savings accounts at XXXX. The final statement for period XXXX shows both accounts ending at {$0.00} with a notation that accounts were closed. This closure occurred while my disputes were unresolved and while I had an active regulatory complaint pending, leaving me without access to any funds. IV. FINANCIAL HARM As a direct result of Navy Federal 's failures, I have suffered the following documented financial harm : Depletion of inherited funds from a starting balance of approximately {$98000.00} through unauthorized transfers and fraudulent transactions Returned payments due to insufficient funds caused by account discrepancies Inability to pay essential bills during the dispute period Loss of account access preventing me from managing my finances Ongoing financial instability Professional risk I hold a state-issued professional license and any appearance of financial misconduct could jeopardize my career V. DEMANDS FOR RELIEF I respectfully request that the CFPB require Navy Federal Credit Union to : 1. Conduct a full forensic accounting reconciliation of all transactions across all affected accounts for the period XX/XX/XXXX through XX/XX/XXXX 2. Provide complete written documentation of all investigation findings for every denied claim, as required under Regulation E 3. Reimburse all unauthorized and fraudulent charges in accordance with the Electronic Fund Transfer Act ( 15 U.S.C. 1693 et seq. ) and Regulation E 4. Reimburse all funds lost through unauthorized transfers from savings account XXXX XXXX. Process the pending XXXX merchant refund 6. Explain and reconcile all documented balance discrepancies between ATM receipts, text message notifications, and bank statements 7. Withdraw and retract the retaliatory XX/XX/XXXX threat letter 8. Remove any adverse notations related to fraud claim activity from my member account record 9. Provide a full accounting of all account numbers, phone numbers, and devices that were linked to my membership profile during the dispute period VI. SUPPORTING EVIDENCE The following documents and evidence support this complaint and are available upon request : Physical ATM receipts showing balance discrepancies ( XXXX XXXX XXXX, XX/XX/XXXX ) Navy Federal deposit receipt showing {$2700.00} deposit ( XX/XX/XXXX ) NFCU text message notifications showing balances that contradict statements Navy Federal bank statements for periods XXXX with annotated discrepancies XXXX Federal XXXX XXXX text messages on card XXXX ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ) Navy Federal security code warning texts ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ) Navy Federal denial emails for debit card XXXX ( {$1000.00} and {$4400.00} ) Navy Federal threatening letter dated XX/XX/XXXX ( received XXXX copies ) XXXX payment dispute confirmation email AppFolio/Salesloft data breach notification letter dated XX/XX/XXXX XXXX XXXX XXXX data breach notification dated XX/XX/XXXX All formal appeal letters and legal notice emails sent to Navy Federal XX/XX/XXXX Prior CFPB complaint and Navy Federal response ( Case No. XXXX ) Call recordings of interactions with Navy Federal representatives VII. CONCLUSION Navy Federal Credit Union has repeatedly failed to conduct lawful investigations, has withheld documentation I am legally entitled to, has restricted my account during an active dispute, has retaliated against me for exercising my rights, and has provided responses to regulators that are factually incomplete and misleading. I am a victim of identity theft through XXXX documented data breaches, and Navy Federal 's failure to investigate properly has resulted in the loss of substantial inherited funds and ongoing financial harm. I respectfully request that the CFPB conduct a thorough investigation of this matter, impose appropriate penalties, and require Navy Federal to make me whole. Respectfully submitted,

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