Consumer complaint received 2025-01-18 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Banking errors
Company: NAVY FEDERAL CREDIT UNION
State: MS

Complaint narrative:
I, XXXX XXXX, XXXX XXXX  without the UNITED STATES am submitting this formal complaint against Navy Federal Credit Union ( " Navy Federal '' ), its agents, and/or employees for breach of trust and fiduciary duty. The institution failed to appropriately ledger my account for " credit only '' as directed by a properly executed deposit voucher and subsequently placed a fraudulent restricted access on my account. These actions caused significant financial harm and inconvenience, violating applicable laws, banking circulars, and fiduciary principles.

Facts of the Case 1. On XX/XX/2025, I presented a properly executed deposit voucher to Navy Federal Credit Union for processing. The vouchers explicitly directed that the funds be applied " for credit only '' to the specified account.

2. Navy Federal failed to ledger the account appropriately and imposed an unwarranted restricted access on the account the same day.

3. The restriction denied me access to my funds, caused disruption to my financial affairs, and resulted in direct harm and losses, including late fees, inability to meet obligations, reputational damage.

4. Despite my attempts to resolve the matter amicably, Navy Federal refused to provide a satisfactory explanation or take corrective action.

Legal Basis for the Complaint 1. Uniform Commercial Code ( UCC ) : o UCC Article 4 ( Bank Deposits and Collections ), specifically 4-401 and 4-402, requires proper handling of items for deposit and prohibits wrongful dishonor of transactions.

2. Maxims of Law : o Equity acts specifically, and not by way of compensation. Navy Federals refusal to honor the deposit voucher breaches fiduciary duties owed to account holders.

o Fraud vitiates everything it touches. The imposition of a restriction under false pretenses constitutes fraudulent conduct.

3. Banking Circulars : o Federal Reserve Circular No. 5 and other applicable banking circulars mandate that funds deposited with proper instructions, such as " for credit only, '' must be applied as directed without arbitrary restrictions.

4. Fiduciary Duty : o Navy Federal, as a fiduciary institution, is obligated to act in good faith and in the best interest of its account holders. Its failure to comply with the deposit instructions and the subsequent imposition of restrictions represent a clear breach of fiduciary duty and trust.

Harm Suffered As a direct result of Navy Federals actions, I have suffered the following harms : 1. Financial losses totaling the amount of all deposit vouchers held at NAVY FEDERAL.

2. Reputational damage due to the inability to meet financial obligations.

3. Emotional distress caused by the uncertainty and inconvenience of restricted access to my funds.

Relief Sought I respectfully request that the CFPB take the following actions : 1. Investigate Navy Federal Credit Unions practices regarding the handling of deposit vouchers and account restrictions.

2. Compel Navy Federal to : o Remove all restrictions on my account.

o Apply the credits for credit only/adjustment as directed in the deposit voucher.

o Compensate me for the financial losses and damages incurred.

3. Ensure Navy Federal updates its policies and procedures to prevent similar breaches of fiduciary duty in the future.

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