Consumer complaint received 2025-10-14 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: TX

Complaint narrative:
not a duplicate To Whom It May Concern : This letter serves as a final demand and formal notice of willful noncompliance. I am addressing Navy Federal Credit Union ( NFCU ) regarding the above-referenced account that was charged off and sold or assigned as there has been legal action taken against me. 

The actions of NFCU represent a clear, knowing, and willful disregard of your own binding arbitration clause, as well as violations of federal credit-reporting law. This notice is written under the Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. ), Regulation V ( 12 C.F.R. 1022.43 ), Texas Finance Code 392.304, and NCUA Rules & Regulations ( 12 C.F.R. Part 701 ). 



1. DISREGARD OF BINDING ARBITRATION AGREEMENT At the time this account was opened, NFCUs membership and credit-card agreements required that any dispute, claim, or controversy be resolved exclusively through binding arbitration, as authorized by the Federal Arbitration Act ( 9 U.S.C. 116 ). 

NFCU has willfully ignored that obligation by allowing or directing _____ to file suit in violation of the agreement. This is a breach of contract, a breach of fiduciary duty owed to the member, and a violation of federal arbitration law. 

Your failure to enforce your own arbitration clause is not a minor oversight it demonstrates a pattern of abuse and a systemic disregard for the rights of your members. It has forced me into unnecessary legal and financial hardship, including stress, credit denials, and emotional distress that have negatively shaped my life. 

I will not entertain further justifications or administrative delays. NFCU must take full responsibility for the violation and resulting harm. 



2. FAILURE TO ISSUE OR FILE FORM 1099-C Despite charging off and selling this account, no IRS Form 1099-C was ever issued or filed by NFCU as required under 26 C.F.R. 1.6050P-1. 
A creditor is obligated to issue a Form 1099-C when a debt of {$600.00} or more is canceled, settled, or otherwise discharged.

By failing to do so, while simultaneously permitting a third-party collector to pursue litigation, NFCU has created a false tax and credit record that misrepresents the true nature of the debt. This constitutes : Double recovery in violation of federal law ; A misrepresentation of the character and amount of the debt under Tex. Fin. Code
392.304 ( a ) ( 8 ) ; and A willful furnishing of inaccurate information under 15 U.S.C. 1681s-2 ( a ).

3. DIRECTIVE TO CEASE REPORTING AND ADDRESS ALL ISSUES INTERNALLY I will not continue disputing through third parties, collection firms, or credit bureaus.

All matters regarding this account must be handled directly and solely by Navy Federal Credit Unions legal and compliance department. 

Effective immediately, you are directed to : Delete all NFCU tradelines and any associated data from XXXX XXXX XXXX XXXX ; Instruct Absolute Resolutions to withdraw any legal or collection actions pending against me ; and Provide written confirmation that this account has been fully removed from all consumer reporting agencies and is no longer subject to any collection activity. 



4. DAMAGES DEMAND Because of NFCUs : Willful disregard of arbitration obligations, Failure to follow IRS and NCUA compliance rules, and Furnishing of false and misleading information, I have suffered emotional distress, reputational damage, and financial hardship. 

Accordingly, I hereby demand {$8000.00} as compensation for damages to offset the ongoing harm caused by these actions. This demand reflects the impact this has had on my daily life, mental health, and financial stability. 

If NFCU refuses to resolve this matter by deleting the tradeline and compensating for damages, I will immediately file : A formal complaint with the National Credit Union Administration ( NCUA ), A consumer complaint with the Consumer Financial Protection Bureau ( CFPB ), and A civil arbitration demand for full statutory and compensatory damages under 15 U.S.C. 1681n, 1681o, and 9 U.S.C. 4.

5. REQUIRED ACTION WITHIN 7 DAYS Complete deletion of the NFCU account from all consumer credit reports ; and Payment of damages to resolve this claim in full. 

Failure to comply with these requests for relief will result in the immediate initiation of arbitration and referral to the NCUAs Consumer Assistance Division for regulatory review. Respectfully, LEGAL AUTHORITIES AND REFERENCES Federal Arbitration Act ( 9 U.S.C. 116 ) Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. ) Regulation V ( 12 C.F.R. 1022.43 ) 26 C.F.R. 1.6050P-1 ( IRS 1099-C Reporting Requirement ) Texas
Finance Code 392.304 ( a ) ( 8 ) NCUA Rules & Regulations ( 12 C.F.R. Part 701 XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Reasonable Investigation Requirement for Furnishers

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