Consumer complaint received 2025-06-29 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Problem with a lender or other company charging your account — Can't stop withdrawals from your account
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
For the Consumer Financial Protection Bureau ( CFPB ) Subject : Unauthorized Account Debits and Violation of FCBA Regarding Credit Card Offset Severe Financial Hardship To whom it may concern, I am filing this complaint due to highly concerning and unauthorized debits from my checking and savings accounts by Navy Federal Credit Union, which have directly led to severe financial hardship. I believe these actions violate federal consumer protection laws, specifically the Fair Credit Billing Act ( FCBA ), regarding the offset of credit card debt.

Chronology of Events & Specific Issues : 1. Unexplained Pending Withdrawals ( Approx. 2 days ago ) : Approximately 2 days ago, I observed an unexplained pending withdrawal ( {$95.00} ) from my checking account. The transaction description provided no clarity beyond pending, causing me confusion and concern about potential unauthorized activity.

2. Attempt to Safeguard Funds : with critical bills ( including rent ) due within days and limited funds, and uncertain about the nature of this pending transaction, I transferred my remaining balance of approximately {$200.00}, I received as a Direct Deposit from my job, from my checking account into my savings account, believing these funds would be secure while I investigated the mysterious debit. At this point, every dollar I had in my accounts was specifically going towards crucial bills. 

3. Discovery of Full Account Sweep ( Yesterday ) : As of XX/XX/XXXX, I discovered that the approximately {$200.00} I had diligently moved into my savings account had also been debited. All my accounts across Navy Federal Credit Union now show a XXXX or near XXXX dollar balance. 

XXXX. Bank 's Justification & Lack of Notice : Upon contacting Navy Federal Credit Union yesterday ( XX/XX/XXXX ), I was informed that the bank itself initiated these debits from both my checking and then my savings account to pay off a past-due credit card bill. ( a bill that I was only slightly behind on, by one payment ) The representative stated that the bank was authorized to do this based on " fine print '' in the original credit card agreement that I had signed off on. However, I do not recall seeing or understanding any fine print that specifically gives them permission to go into my accounts and take whatever money they want, without my authorization. He then asked me how I signed off on the credit card application. As in, which platform? Internet, Phone or in person. Am I to understand that there are different applications for the same credit card that highlights different information? The same representative I spoke with on the phone also stated that there was No way to reverse the unauthorized charges. There were XXXX solutions offered and XXXX information that would have been helpful in helping with this situation. 

XXXX. Lack of Transparency & Improper Offset : My primary grievance is the complete lack of transparency and proper authorization for these actions. 
There was no prior, clear notification or warning from Navy Federal Credit Union that funds would be directly debited from my deposit accounts to cover credit card debt. 
The initial checking account transaction was ambiguously labeled " pending '' with no explanation. 
Crucially, I did not authorize Navy Federal Credit Union to unilaterally sweep funds from my deposit accounts ( checking or savings ) to cover credit card debt. My understanding, based on the Fair Credit Billing Act ( FCBA ), is that credit card issuers are generally prohibited from exercising a " right of offset '' on consumer deposit accounts for credit card debt without explicit, ongoing, consumer-initiated authorization for that specific action ( e.g., automated payments I set up ), or a court order. This was not such a scenario. 

Impact of Bank 's Actions : The bank 's unannounced and broad debiting of my funds has had a severe and immediate negative impact on my financial well-being. I am now left with a XXXX balance across all accounts, rendering me unable to pay my rent and other essential living expenses on time. This action taken by Navy Federal Credit Union has set me back further, financially. This situation has caused immense stress and jeopardized my financial stability. 


Requested Resolution : I request that Navy Federal Credit Union immediately : Reverse the unauthorized debits and restore the approximately {$300.00} to my account. 
Provide a clear explanation for this policy and how it aligns with federal consumer protection laws. 
Ensure that no negative marks are placed on my credit report or banking history as a result of the bank 's actions, and reverse the associated Late Credit Card Payment fees Review and revise their communication practices to ensure customers receive clear, explicit, and timely notification before any such drastic account actions are taken. 
I urge the CFPB to investigate this matter thoroughly to protect consumers from such opaque and financially damaging practices.

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