Consumer complaint received 2025-09-08 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Damage caused or loss of personal items in vehicle during the actual repossession
Company: NAVY FEDERAL CREDIT UNION
State: AZ

Complaint narrative:
Description of What Happened : I am a member of Navy Federal Credit Union. In XX/XX/year>, I began working with their Settlements Department and XXXX XXXX Department following the death of a XXXX XXXX XXXX member, XXXX, who left behind a vehicle with an outstanding loan. 
I agreed to Option 2, which Navy Federal offers : I would pay an agreed settlement amount of {$1000.00}, and in exchange, Navy Federal would ( 1 ) remove the decedents name from the vehicle title, ( 2 ) release the lien, and ( 3 ) issue me a blank, transferable title so I could re-register or sell the vehicle. 
On XX/XX/year>, I issued a formal demand letter after repeated phone calls with managers produced no resolution. Despite my compliance and full payment, Navy Federal failed to honor the agreement. They mailed me a title still entirely in XXXX name, unsigned, and therefore legally unusable. This leaves me unable to sell or register the vehicle, forcing me into a possible bonded title process that would last XXXX XXXX  an outcome inconsistent with the purpose of the contract. 
The vehicle was intended to be sold promptly, with proceeds used to pay for XXXX funeral. 
Because of Navy Federals failure, the funeral has occurred without those funds, causing direct financial harm.

Throughout this process, Navy Federals conduct has been deceitful and manipulative : 1. Pressuring me into fraudulent insurance action Their Survivor Support staff pushed me to contact Ryans insurer to attempt to have the vehicle declared a total loss despite no accident. 
This would have resulted in a fraudulent insurance claim and left the vehicle branded as salvage, reducing its market value.

2. Knowingly offering an agreement they could not fulfill Navy Federal represented that Option 2 was valid, that {$1000.00} would secure a clear, transferable title, and that they could send me a blank title for re-registration. Based on their later refusal, it appears they knew all along they could not legally perform this promise but still induced me to pay {$1000.00}.

3. Refusal to repossess due to stigma Navy Federal refused to repossess the vehicle because XXXX had committed suicide inside it, leaving the burden on me. Instead of handling their responsibility, they used this situation to extract {$1000.00} from me with the false promise of a proper title. 
Violations : - Breach of Contract Failure to perform the agreed {$1000.00} payoff/title release deal ( Cal. Civil Code 1636, 3300 ).

- Deceptive and Unfair Practices ( UDAAP ) Misrepresentations, pressure to engage in fraudulent insurance activity, and failure to deliver promised services ( DoddFrank Act, 12 U.S.C. 5531 ).

- Consumer Legal Remedies Act ( CLRA, Cal. Civ. Code 1770 ( a ) ( 5 ), ( a ) ( 7 ) ) Misrepresenting rights and obligations in a consumer transaction.

- Unfair Competition Law ( Cal. Bus. & Prof. Code 17200 ) Engaging in unlawful, unfair, and deceptive business practices.

Requested Resolution : 1. Recognize my formal demand letter dated XX/XX/year> ( attached as Exhibit A ) as prior notice of breach and deception.

2. Compel Navy Federal to immediately issue me a proper lien-released, transferrable title consistent with our agreement.

3. Investigate Navy Federals systemic practices, including pressuring consumers into fraudulent insurance actions and misrepresenting their ability to deliver clear titles. 
I respectfully request that this matter be investigated promptly.

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