Consumer complaint received 2025-06-19 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: NAVY FEDERAL CREDIT UNION
State: OH

Complaint narrative:
In XX/XX/2023, Navy Federal initiated repossession proceedings on my vehicle. However, prior to this, Navy Federal and/or their third party recovery department contacted my spouse regarding my vehicle and a payment arrangement. I was actively making small payments throughout the delinquency period and Navy Federal was transferring money from my Veterans XXXX income from my checking account to my loan. Just days before the repossession was initiated ( never completed ), my spouse was contacted and we entered into a payment agreement with a representative. We were explicitly told that if a payment was made that day, the vehicle would not be repossessed. 

In addition, right before the vehicle was retrieved ( later reinstated ), I contacted Navy Federal to request permission to sell the vehicle myself due to my inability to maintain the loan. 

Despite honoring the payment agreement, the vehicle was still picked up. Shortly after, I paid the required reinstatement amount and the vehicle was returned to me. This cured the default, and no sale or transfer of ownership ever occurredmeaning a legal repossession was never completed. In fact, within a few days of reinstatement, I sold the vehicle independently and paid the loan off in full. I have documentation that the loan was paid on behalf of myself by the company I sold it to. 

Despite this, Navy Federal is reporting to the credit bureaus that my account status is repossession or paid repossession. With comments stating the same inaccurate information. A paid repossession would imply I paid the loan off AFTER it was legally repossessed, so this is incorrect. This reporting is inaccurate and materially misleading, as : I retained ownership of the vehicle.

The vehicle was never sold by the lender.

The loan was reinstated and then paid in full.

Navy Federal never took full or legal ownership of the vehicle, which is a requirement for a repossession to be validly reported. 

This violates the Fair Credit Reporting Act ( FCRA ) 623 ( a ) ( 1 ) ( A ), which prohibits furnishers from reporting information they know or should know is inaccurate. Furthermore, Metro 2 credit reporting guidelines clearly state that when a repossession is reversed through reinstatement, the account should not be reported as a completed repossession.

I have contacted Navy Federal multiple times in an effort to correct this misinformation. Each time, I am told that they are not responsib

le for how credit bureaus report the informationwhich is incorrect. As the furnisher of the data, Navy Federal has a legal obligation under the FCRA to provide accurate, complete, and up-to-date information to credit reporting agencies. To date, they have refused to provide documentation, explain their reporting, or conduct a good-faith investigation into my dispute. This continued misreporting has caused : Significant damage to my credit score Denial of mortgage financing Financial and emotional distress I respectfully request that the Consumer Financial Protection Bureau compel Navy Federal to : 1. Immediately remove the repossession or paid repossession status from my credit report.

2. Correct the tradeline to reflect the accurate statuseither current, closed, or paid in full, depending on internal coding guidelines, but not as repossessed.

3. Provide written confirmation of the correction submitted to all credit reporting agencies.

4. Remove all inaccuracies and quit adding new major delinquencies to my account there should be no dates or information reported after XX/XX/2023. 

I am prepared to provide documentation to support my claim, including payment records, communications, and proof of reinstatement and final loan payoff. 

Thank you for your time and assistance in resolving this matter.

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