Consumer complaint received 2026-05-19 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: NAVY FEDERAL CREDIT UNION
State: NY

Complaint narrative:
To Whom It May Concern, I am submitting this formal complaint against Navy Federal Credit Union regarding deceptive business account practices, unauthorized account access, and improper withdrawals from my checking account. I originally applied for and opened a business credit card under my business name with the understanding that it was strictly a business account. During the application process, I specifically questioned whether my Social Security Number would be tied to the account in a manner that would permit Navy Federal to access or withdraw funds directly from my personal or business checking accounts. I was told that it would not. The Navy Federal representative I worked with was extremely misleading and deceptive during the account opening process. At no point was it properly explained to me that Navy Federal would later claim authority to seize funds directly from my accounts through a right of offset or similar provision tied to my Social Security Number. Additionally, Navy Federal required me to use separate login credentials and a separate business profile to access and manage the business account, which further reinforced my understanding and belief that the business credit account was distinct and separate from my personal accounts and personal banking relationship. It was not until later, after funds were withdrawn from my checking account, that I discovered Navy Federal had internally linked my Social Security Number and personal banking relationship to the business account in a manner that allowed them to access my funds. Although Navy Federal later produced documents claiming authorization existed, I dispute that meaningful informed consent was ever obtained. Important terms and consequences were either misrepresented, minimized, or not properly disclosed by the representative handling the account. These withdrawals caused significant financial hardship and interfered with my financial obligations, business operations, and financial planning. Most recently, Navy Federal completely emptied my checking account, taking all available funds while making little impact on the overall balance owed. Additionally, Navy Federal returned a payment/check connected to one of my credit card accounts that was not associated with Navy Federal , which caused that separate institution to charge me additional fees and negatively impacted my account standing. Despite the hardship and consequences caused by this action, Navy Federal has refused to reverse or reimburse the resulting charges. I believe Navy Federal engaged in unfair and deceptive business practices by : Failing to clearly and transparently explain the personal liability implications of the account, Misrepresenting how my Social Security Number would be used, Exercising account offset powers without meaningful informed consent, And failing to ensure I fully understood the consequences of the agreement being presented. Additionally, as a New York resident, Navy Federal has no physical branch locations reasonably accessible to me, making it extremely difficult to resolve these issues in person. I respectfully request : A full investigation into the conduct of the representative involved in opening this account. Copies of all signed agreements, disclosures, and authorizations connected to this account. A complete accounting of all withdrawals taken from my accounts under the claimed offset authority. Review of whether Navy Federal violated federal consumer protection laws involving unfair or deceptive acts and practices. Appropriate relief, reimbursement, or corrective action resulting from the financial harm caused. Preservation and production of all evidence related to the opening and servicing of this account, including but not limited to : Recorded phone calls, Internal account notes, Employee communications, Electronic signatures, IP address and device logs, Disclosure timestamps, Application session records, Copies of all agreements presented during account opening, And any records showing that offset rights, personal liability, or account seizure authority were verbally explained to me. I also request that Navy Federal preserve all records related to this matter in anticipation of potential legal proceedings. I reserve all rights to pursue additional legal remedies, including civil litigation, regarding the damages and hardship caused by these actions. Sincerely, XXXX XXXX

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