Consumer complaint received 2024-11-22 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: NAVY FEDERAL CREDIT UNION
State: AZ

Complaint narrative:
Dear navy federal credit union I am writing to formally dispute the overdraft fees that I have been charged on my account and to demand a remedy for the financial and emotional damages I have incurred due to your deceptive practices. 

Nature of the Dispute Your institution has engaged in practices similar to those detailed in the recent enforcement action by the Consumer Financial Protection Bureau ( CFPB ) against Navy Federal Credit Union. Specifically, I have been charged overdraft fees under circumstances where : 1. My account reflected sufficient funds at the time of the transaction, but overdraft fees were later assessed when the transaction was processed.

2. Incoming payments were displayed as available for use ( e.g., from peer-to-peer platforms like XXXX, XXXX, XXXX XXXX XXXX ) but were not actually accessible due to undisclosed processing times, resulting in overdraft fees when I attempted to use these funds. 

These practices are deceptive, unfair, and violate the Consumer Financial Protection Act by exploiting your customers trust. 

Damages and Impact As a financially independent individual, I intentionally maintain only enough money in my bank account for anticipated expenses due to a lack of confidence in the banking system. Despite this, your institution has capitalized on these practices to collect thousands of dollars in fees from me. 

This has caused significant inconvenience, financial disruption, and frustration. It is clear that your institutions fee structure has been designed to exploit customers, even those who act responsibly. 

Remedy Demanded Based on the CFPBs recent order against Navy Federal Credit Union, I am seeking the following remedy : A refund of {$9000.00} for the overdraft fees I have been wrongfully charged and the damages to my livelihood and well-being.

Assurance that your institution will discontinue deceptive practices related to overdraft fees, similar to the CFPBs ban on such fees in the Navy Federal case. 

Legal Precedent The CFPBs investigation found that institutions like yours violate consumer protection laws when they : Charge overdraft fees on transactions where accounts showed sufficient funds at the time of purchase.

Fail to disclose processing delays for incoming payments from peer-to-peer services, leading to additional overdraft fees.

Given the CFPBs authority under the Consumer Financial Protection Act, it is evident that your institutions practices similarly constitute unfair, deceptive, and abusive acts.

Next Steps I request that you respond to this dispute within 14 days. If no satisfactory resolution is reached, I will escalate this matter to the CFPB, join ongoing class-action litigation, and pursue further legal remedies.

Thank you for addressing this matter promptly. I look forward to your response and resolution.

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