Consumer complaint received 2025-12-04 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
According to a customer service representative In XX/XX/year>, Navy Federal Credit Union changed the status of my auto loan from secured to unsecured without notifying me, without my consent, and without providing any written disclosure to my actual address not the one they claim to have on file because that it not the address I provided to them when I signed the promissory note. The address I provided to them when I applied for the loan is not the same one they claim to have sent the letter to notifying me of the sudden change. Because of this unannounced change, the Navy Federal mobile app continued to display outdated and incorrect payment information, including an inaccurate next payment due date and the new payment amount. It suggested I pay the amount I would normally pay but according to the Navy Federal representative that amount was less than the new amount but I was not informed through the app or over the phone with the previous representative on the prior calls.

I relied on the payment information provided by Navy Federals app and representatives. As a result of their internal error, Navy Federal reported a late payment on my auto loaneven though I have never missed a payment and have always paid on time. They claim it was partially paid but that was because the loan had transitioned into an unsecured loan with a higher interest rate and therefore the payments were now higher.

During this period, Navy Federal also made unauthorized withdrawals from my savings account, causing overdrafts and further confusion with my account balances. These withdrawals were not initiated or approved by me. This contributed to misinformation displayed in the app and created financial issues that were entirely caused by Navy Federals system errors.

When I contacted Navy Federal multiple times between XXXX and XX/XX/year>, I was given contradictory, misleading, and incomplete explanations by representatives. No one could explain : why the loan was converted to unsecured, why I was not notified, why the app showed incorrect payment information, why unauthorized withdrawals occurred, or why a late payment was reported despite timely payments. 

I repeatedly requested that Navy Federal investigate the issue, correct the inaccurate late payment reporting, and remove the derogatory mark from my credit reports. Despite this, they have failed to correct the error or provide a valid explanation.

This late payment is not the result of my actions, but the result of Navy Federals negligence and failure to maintain accurate account information. Navy Federal has also previously been the subject of CFPB enforcement for illegal overdraft practices, which is relevant because my complaint involves unauthorized withdrawals.

I am requesting that the CFPB require Navy Federal to remove the inaccurately reported late payment from all credit bureaus, investigate the unauthorized activity, and hold Navy Federal accountable for these errors.

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