Consumer complaint received 2025-11-22 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
COMPLAINT DESCRIPTION I am filing this complaint against Navy Federal Credit Union for failing to follow their own lending policies and federal credit union due diligence requirements, resulting in my paying {$21000.00} over 19 months for a vehicle I never legally owned. 

Background : XX/XX/XXXX I financed a vehicle through Navy Federal Credit Union from XXXX XXXX XXXX XXXX. The loan amount was {$63000.00}. I have been paying {$1400.00} per month for nearly two years. 

The Problem : The dealership never transferred the vehicle title or registration into my name. I possessed the vehicle for only two months before losing access to it. The vehicle was never legally mine. The dealership has since gone out of business. 

Navy Federals Policy Violations : 1. Navy Federals policy states that if a lien-recorded title is not received within three months, the loan APR may be converted to the prevailing personal loan rate. This was never done, meaning Navy Federal continued treating this as a secured auto loan despite having no collateral. 
2. As a federally insured credit union, Navy Federal is required under NCUA guidelines to perform due diligence on dealerships and establish effective controls to mitigate risks. Navy Federal failed to verify proper title transfer before and after funding this loan. 
3. Navy Federal continued to accept payments on what they classified as a secured auto loan while knowing they never received the lien-recorded title required to secure the loan. 
4. Navy Federal was unable to provide me with proof of lien perfection upon request. 

My Attempts to Resolve : I have contacted Navy Federal numerous times over the past two years regarding this issue. Their only response has been to ask if I will continue making payments. They have not acknowledged their policy violations or taken responsibility for funding a loan without proper collateral. 

I recently sent Navy Federal a written request through their secure messaging system asking them to document : - When they received the lien-recorded title ( they never did ) - Proof of the 30-day notification they were required to send - What actions they took to secure the title from the dealership ( none ) - Why they continued accepting payments without valid collateral Despite never legally owning this vehicle : - I have been making payments of XX/XX/XXXX/month for nearly two years - I have paid approximately {$21000.00} total on this loan - Navy Federal funded a loan without ensuring proper title transfer to secure their collateral - Navy Federals own policy requires lien-recorded title within three months of purchase - Navy Federal continued accepting payments knowing I never received proper title What I Am Requesting : 1. Full cancellation of the remaining loan balance, as Navy Federal funded an improperly secured loan in violation of their own policies and NCUA due diligence requirements.

2. Refund of payments made - I have paid approximately {$22000.00} for a vehicle I never legally owned due to Navy Federals failure to ensure proper title transfer. 
3. Correction of any negative credit reporting related to this account. 

Navy Federals failure to follow their own policies directly caused my financial harm. I am requesting the CFPB investigate Navy Federals lending practices and assist in resolving this matter. 
Thank you XXXX XXXX XX/XX/XXXX 2025

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