Consumer complaint received 2024-09-30 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: LA

Complaint narrative:
My name is XXXX XXXX, and I hold an account with Navy Federal Credit Union. I am writing to bring to your attention a series of unauthorized transactions and subsequent issues with my account access that occurred between XX/XX/XXXX and XX/XX/XXXX. 
On XX/XX/XXXX, I noticed the first unauthorized transaction on my account. I immediately contacted Navy Federal Credit Union, and they issued a new card, which was sent to my address. Despite this, on XX/XX/XXXX, I detected further unauthorized activity. I again promptly notified Navy Federal Credit Union, and on XX/XX/XXXX, they informed me that my account had been compromised. Consequently, they closed my original account, issued a new account number, and guided me through changing my online access username and password. 
Unfortunately, on XX/XX/XXXX, my password was unknowingly reset, and on XX/XX/XXXX, additional unauthorized charges were made. I reported these charges and filed a dispute. On XX/XX/XXXX, I contacted Navy Federal again due to continued suspicious activity. The following day, XX/XX/XXXX, I was denied access to the funds in my account. 
On XX/XX/XXXX, at XXXX, I received an email stating that Navy Federal withdrew {$1500.00} from my account. At XXXX the same day, another email indicated that my claims filed on XX/XX/XXXX, had been resolved. I contacted the Navy Federal Credit Union fraud department to request the documentation used to make this decision, but to date, I have not received any response. 
When I inquired about the withdrawal, I was informed it was to cover transactions from the account closed due to fraudulent activity on XX/XX/XXXX. Despite my efforts to seek clarification, including a 40-minute call with the fraud department, the issue remains unresolved. 
On XX/XX/XXXX, my computer was disabled by XXXX due to spyware infection, which compromised several passwords and personal data. I promptly informed Navy Federal about this breach, yet access to my funds was still denied.

The only deposits into my Navy Federal account are my monthly VA XXXX and XXXX XXXX ( XXXX ) payments, which are protected under Title 38 of the Code of Federal Regulations ( CFR ), specifically 38 CFR 13.140. This regulation states that financial institutions can not restrict access to these funds. On XX/XX/XXXX, at XXXX, I received an email stating Navy Federal withdrew an additional {$1600.00} from my account, marking the second unauthorized withdrawal.

My last bank statement indicates a balance of {$1300.00}, yet Navy Federal still refuses to grant me access to my funds. According to 38 U.S. Code 5301 and 31 CFR 212.3, VA benefits are protected against assignment, XXXX, or XXXX, including by financial institutions. These regulations mandate that once deposited, these benefits can not be garnished or restricted. 
As of today, XX/XX/XXXX, Navy Federal Credit Union continues to deny me access to my funds.

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