Consumer complaint received 2026-06-16 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: NAVY FEDERAL CREDIT UNION
State: MD

Complaint narrative:
On XX/XX/XXXX, criminals took over my XXXX account and initiated an unauthorized {$2600.00} debit from my Navy Federal checking account ( ending XXXX ). A scammer hacked a longtime friend 's XXXX account, posed as the friend, and said that " XXXX '' would call with a referral reward. An impostor then called posing as a XXXX representative and had me read back a code texted to my phone, claiming it verified the reward. The code was actually a password-reset code ; the criminal used it to take over my account, change the password and recovery phone number, and send the money. I never logged into XXXX, never set up or approved any transfer, and received no money or benefit. I reported it to Navy Federal the same day, XX/XX/XXXX. Navy Federal denied the claim on the theory that I " authorized and/or participated '' because I was deceived into reading a code. This is the exact scenario the CFPB 's Electronic Fund Transfers FAQs ( Unauthorized EFTs, XXXX and XXXX, updated XX/XX/XXXX ) define as an UNAUTHORIZED transfer : XXXX states that a consumer who is fraudulently induced into providing account information " has not furnished an access device '' under Regulation E. When I formally requested the documents relied on under 12 C.F.R. 1005.11 ( d ) ( 1 ), Navy Federal attached no documents ( its message said the documents " if any '' were attached, and none were ) and produced no XXXX records, indicating no real investigation occurred before the denial. On recorded calls, Navy Federal 's own representatives confirmed that my claim was internally miscoded as a " scam '' and was automatically declined by that classification, rather than investigated. A Navy Federal supervisor told me directly that the account-takeover facts I reported were not even reflected in the claim notes, and instructed me to file an appeal so the full facts could be considered. Despite my repeated written and verbal requests, Navy Federal never provided a claim number, which is consistent with the claim never having been properly opened or investigated as a fraud claim. Navy Federal representatives also confirmed that XXXX has stated it will refund the funds once Navy Federal contacts them, so recovery is available and the transaction is not in dispute as fraudulent ; Navy Federal has simply declined to pursue it or to credit my account. On XX/XX/XXXX, Navy Federal stated in writing that " provisional credit will not be issued '' during the appeal. This violates 12 C.F.R. 1005.11 ( c ) ( 2 ), which requires the institution to provisionally credit the account when it can not complete its investigation within 10 business days of notice. That deadline is XX/XX/XXXX, measured from my XX/XX/XXXX report. Navy Federal also repeated the position that a transaction a consumer is convinced to make by a third party is not fraud ; that describes a transaction the consumer knowingly makes, which is not my situation. I never accessed my XXXX account or approved any transfer. A third party took over my account and initiated the transfer, which is an unauthorized EFT under Comment 2 ( m ) -3. The stolen funds were my mortgage payment, and the theft left my checking account at {$0.00} immediately afterward. Because Navy Federal denied the claim and refused provisional credit, I was forced to move money out of my savings to cover my mortgage and avoid defaulting. Navy Federal 's provisional-credit obligation falls on XX/XX/XXXX. I am also traveling internationally from late XXXX until XXXX, which makes prompt resolution especially urgent and makes extended delay particularly harmful.

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