Consumer complaint received 2025-05-16 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Lender trying to repossess or disable the vehicle
Company: NAVY FEDERAL CREDIT UNION
State: IL

Complaint narrative:
In XX/XX/XXXX, after careful consideration and out of financial necessity, I made the difficult decision to file for bankruptcy. Although I am an intelligent and capable woman, I understood that filing bankruptcy is a serious legal process and sought professional guidance. I turned to XXXX, a firm that advertises heavily within underserved communities like mine, under the impression that they were there to help people like me get back on stable financial ground. 

During my free consultation, I was misled. I disclosed everything my income, my benefits ( including XXXX and a medical card ), and the primary reason for filing : an active lawsuit against me over a debt I could not afford to pay. I am a single mother with limited resources, and my priority has always been to ensure my daughter finishes high school strong her graduation is next week. XXXX was fully aware of my circumstances, yet they pushed me forward in the process anyway. 

I was told I could exclude my vehicle from the bankruptcy. That was false. I was told they would help me handle my taxes. That was another lie my attorney directly misrepresented this to the trustee during the hearing. I couldnt afford tax preparation at the time and was deeply embarrassed. I attempted to pay my car note through Navy Federal, but my payments were blocked. I tried to juggle my car note and payments to XXXX, but it became impossible. I needed my car to survive to work, to care for my child so I waited for answers that never came. 

Eventually, my bankruptcy case was dismissed not because I was irresponsible, but because I couldn't pay XXXX and pay to have my taxes filed. It wasnt until after all of this that I discovered I was eligible to have my court filing fees waived due to receiving government assistance a fact they either ignored or deliberately withheld. I could have filed on my own, for free, with proper information. Instead, I was preyed upon by a firm that profits off the vulnerable under the guise of community service. 

As a result of their negligence and misrepresentation, Ive been set back financially another year maybe more. Ive since been diagnosed with severe XXXX directly related to this experience. 

To make matters worse, Navy Federal has compounded this harm. On XX/XX/XXXX, I contacted them to request a settlement or payment plan on my vehicle, a XXXX XXXX XXXX with over XXXX miles, which has required major repairs including a new alternator, starter, battery, radiator, water pump, and thermostat. Ive spent XXXX  keeping it running. At the time of bankruptcy, Navy Federal had agreed to charge off the loan for approximately {$4500.00}. Yet, when speaking with them directly, I was told the only acceptable settlement would be {$10000.00}, and I was given 30 days to pay it in full. 

I waited for the promised settlement letter. It never came. Instead, just before XXXX 's XXXX, I received a notice ( postdated after XX/XX/XXXX ) demanding full repayment of {$16000.00}. On XX/XX/XXXX this morning I woke up to find my vehicle repossessed. No warning. No follow-up letter. No certified mail. No overnight delivery. Despite Navy Federals vast resources, they made no good faith effort to notify me in a timely or lawful manner.

This is unethical and likely unlawful. I now plan to refile bankruptcy pro se and properly discharge these debts. Additionally, I intend to explore legal action against both Navy Federal and XXXX XXXX Against XXXX  for malpractice, misrepresentation, and failing to act in my best financial interest including pushing me into a bankruptcy I could not afford and omitting that I qualified for fee waivers. 

Against Navy Federal for wrongful repossession, bad faith negotiations, failure to send legally required notices, and refusing to honor the lower settlement previously agreed upon with a third party.

I am formally requesting a settlement on my vehicle in the amount of {$4500.00} the exact amount Navy Federal was willing to accept from XXXX. It is unjust and discriminatory to offer favorable terms to a large firm while denying a reasonable settlement to an individual struggling to survive. 

This experience has been emotionally traumatic, financially devastating, and legally questionable. I will not remain silent while large institutions continue to exploit and mislead vulnerable individuals. All I wanted was a fresh start and I still do.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief