Consumer complaint received 2025-01-21 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
I requested SCRA benefits for my credit card. Navy Federal Credit Union closed my account the next day. I had enough points built up from paying over $ XXXX over 15 years of the credit card 's life to purchase four round trip tickets to XXXX. Navy Federal Credit Union granted me SCRA benefits on interest rates approximately 5 months later, but refused to honor the protections provided by SCRA to not close the account. I know have over {$20000.00} in credit card debt that I'm paying off without the benefit of the point accumlation that I should be entitled too. This has also hurt my credit score. 

Letter from NFCU : Subject : Lodge an Official Complaint Navy Federal Response XX/XX/XXXX : Thank you for contacting us via Navy Federal 's eMessaging service and advising us of your concerns, Commander XXXX. The Servicemembers Civil Relief Act ( SCRA ) is a federal law providing benefits and protections to individuals engaged in military service, so they can focus on their missions without the same amount of financial-related stress as they otherwise might have. Active Duty servicemembers are eligible by law for SCRA interest rate protection on debt they incurred before they were ordered to start their Active Duty period. The SCRA caps the interest rate percentage at a rate no higher than the adjusted interest rate. 

Effective XX/XX/XXXX Navy Federal expanded its benefit to members covered under the Servicemembers Civil Relief Act ( SCRA ) and capped interest on eligible lending products at 4 %, lower than the 6 % the federal act requires.

Key protections for the service member under SCRA include, but are not limited to : Limiting the interest rate to four percent ( 4 % ) on all obligations incurred prior to entering active duty Default judgments can not be obtained without notifying the court of the active duty status Foreclosure proceeding protections while on active duty. A service member 's mortgage loan can not be referred for foreclosure until 12 months after the end of a service member 's military service Vehicle repossessions while on XXXX XXXX Eviction proceeding protections Our records indicate youXXXX XXXX XXXX XXXX XXXX  was protected under SCRA XX/XX/XXXX thru XX/XX/XXXX. However, the SCRA does not relieve servicemembers from the requirement to make timely payments on their loans. While foreclosure and repossession options are limited by the SCRA in the event of a delinquency, lenders are still permitted to report negative information to credit reporting agencies in the event of a default. 

The Credit Card Agreement and Disclosure provided upon establishment of an account indicates ; We may, without notice or demand, close your account or suspend your account by denying use of the credit line. 

Our records indicate as of XX/XX/XXXX, your XXXX XXXX XXXX XXXX was past due {$2300.00} for the payments due by XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Due to the manner in which your credit card was maintained, your account was closed effective XX/XX/XXXX. A notice letter advising of the closure details was mailed to an address of record dated XX/XX/XXXX. 

Unfortunately, once a credit card has been closed we are unable to reopen the account. We do not make courtesy or goodwill adjustments. We regret that a more favorable reply could not be made to your request. 

Please be advised, although your credit card is now in a " Closed '' status, you will still have a monthly payment that includes any amount past due PLUS the greater of {$20.00} OR the sum of 1 % of your New Balance ( excluding interest and fees ) PLUS interest and fees charged during the billing cycle. We will continue to report any credit history related to the account to the credit bureaus in your name until the balance is paid in full. 

To have available credit again, you will need to apply for a new Navy Federal credit card. You may apply for a new credit card account under your Navy Federal Online Account Access by clicking on the Account Services tab and following the instructions on the option " Apply for a Credit Card ''. You may also make this request by calling us toll-free any time at XXXX. The Credit Card Lending Team will review your application and notify you in writing of its decision.

Should you have any additional questions or require further assistance, please do not hesitate to respond to this message or contact us via the direct toll free XXXX number. Our hours of operation are Monday through Friday from XXXX am to XXXX XXXX  and XXXX from XXXX XXXX  to XXXX XXXX, Eastern time. 


Your Message XX/XX/XXXX : Good Afternoon, My credit card was unlawfully closed while under SCRA protection. I'd like to lodge an official complaint with Navy Federal 's Special Dispute Resolution Department. Per the Consumer Protection Financial Bureau, it is illegal to close any account protected by SCRA. The remedy requested is to fully re-instate my credit card to include full restoration of my credit card loyalty point program account. Without internal remedy, I will have to seek external recourse. Please call me at your earliest convenience to discuss. Thank you. 

XXXX XXXX XXXX This incident can not be reopened or updated. If you need further assistance, please submit a new question by clicking the Ask A Question tab.

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