Consumer complaint received 2024-05-24 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: NAVY FEDERAL CREDIT UNION
State: NC

Complaint narrative:
On XX/XX/XXXX I supplied via XXXX to Navy Federal Credit Union 4 ePromissory notes and the statements for each account. I requested : I would like to use the epromissory note to pay the full amount of the auto loan including all accrued interest and hidden fees per terms and conditions of the agreement ( I just witnessed it be done with a family members account ) ignorance of the law is No excuse. 

A negotiable instrument is a signed document that promises a payment to a specified person or assignee. Negotiable instruments are transferable, which allows the recipient to take the funds as cash, then use them as preferred. Examples of negotiable instruments include checks, money orders, and promissory notes. 

With that being said, the promissory note is of the same value of whats owed. They have either already received the cash from the promissory note which then would have satisfied the loan or if not Im requesting that they do so by accepting it for value and transfer back to Navy Federal to cash and fulfill the obligation of the loan. 

UCC 3-603 TENDER OF PAYMENT ( a ) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. 

( b ) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. 

( c ) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument. 

UCC 3-104 ( b ) " Instrument '' means a negotiable instrument. 

( e ) An instrument is a " note '' if it is a promise and is a " draft '' if it is an order. If an instrument falls within the definition of both " note '' and " draft, '' a person entitled to enforce the instrument may treat it as either. 

UCC 3-108 ( a ) A promise or order is " payable on demand '' if it ( i ) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or ( ii ) does not state any time of payment. 

( b ) A promise or order is " payable at a definite time '' if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to rights of ( i ) prepayment, ( ii ) acceleration, ( iii ) extension at the option of the holder, or ( iv ) extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event. 
( c ) If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument is payable on demand until the fixed date and, if demand for payment is not made before that date, becomes payable at a definite time on the fixed date. 


Navy Federal is violating my consumer rights and the laws of the UCC as well as their own terms per the conditions and agreements.

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