Consumer complaint received 2024-12-30 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: KS

Complaint narrative:
I am submitting this complaint regarding Navy Federal Credit Union 's handling of my accounts. I believe their actions and lack of communication have caused unnecessary hardship and violated customer trust. 

On XX/XX/year>, I made two transfers from my Navy Federal checking account to my external XXXX  account, which is linked to my Navy Federal account and is in my name. The transfer amounts were {$1900.00} and {$1500.00}. I logged into my Navy Federal account using Multi-Factor Authentication ( MFA ), which included a push notification to my phone to verify my identity. The transfers were initiated successfully without any notification of potential issues.

Shortly after the transfers, Navy Federal froze all my accounts, including my checking, credit card statements, and Certificate of Deposit ( CD ) accounts. I received no notificationneither by email nor phonethat this action was taken. From XX/XX/XXXX to XX/XX/XXXX, I was unable to log in to my account or access my funds, leaving me in financial limbo. 

On XX/XX/year>, upon the reopening of Navy Federals offices, I contacted customer service to resolve the login issue. I was informed for the first time that my accounts had been frozen due to suspected fraud. The representative acknowledged that the transfers were made after I authenticated using MFA and that the destination account was my own XXXX account, which Navy Federal is aware belongs to me. During this conversation, I spoke with a fraud supervisor named XXXX, who exhibited unprofessional behavior by laughing at my situation. This added to my frustration and feelings of being dismissed.

Navy Federals lack of notification before or immediately after freezing my accounts left me without access to my funds or credit during a critical time. Freezing all accounts, including unrelated credit card and CD accounts, appears disproportionate given the circumstances of the transfer. Furthermore, the conduct of their fraud supervisor, who laughed at my concerns, was highly inappropriate and unprofessional. The inability to access my funds caused significant inconvenience and stress. Navy Federals handling of this situation raises questions about their commitment to customer care and transparency.

I respectfully request an explanation from Navy Federal regarding why my accounts were frozen without notification, despite the transfer being legitimate and made after proper authentication. Additionally, I request a review of their procedures to ensure customers are promptly notified in similar situations. An apology for the unprofessional conduct of their representative is warranted, as is assurance that measures will be implemented to prevent such incidents in the future.

I believe this matter warrants your attention, as Navy Federals actions appear to lack proper communication and fairness, causing undue hardship to me as a consumer. I trust the CFPB will review this issue and take appropriate action.

Thank you for your assistance in addressing this matter.

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