Consumer complaint received 2026-01-09 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: AL

Complaint narrative:
Time Period : XXXX Account Type : Checking account and associated debit/ATM activity Total Resolution Requested : {$110000.00} Overview I am a victim of identity theft and unauthorized debit and ATM transactions involving my Navy Federal Credit Union account XXXX XXXX was reported beginning in 2021, supported by law-enforcement documentation and identity-theft affidavits. Despite notice, Navy Federal failed to timely contain or remediate the compromise, allowing unauthorized activity and fraud-related fees to continue across multiple statement cycles. 
Nature of the Fraud The unauthorized activity included : Debit card misuse and card-not-present transactions Unauthorized ATM withdrawals Unauthorized digital and payment-processor activity Fraud-triggered overdraft, NSF, and related fees The activity occurred XXXX clusters, across multiple months, and was inconsistent with normal account usage, reflecting ongoing misuse rather than isolated incidents. 
Failure After Notice Fraud was reported iXXXX XXXX, yet : Unauthorized activity continued after notice Fraud-related fees were assessed The account was not effectively secured Disputed transactions were not fully credited The continuity of unauthorized activity demonstrates a failure to remediate after notice, not delayed reporting by the consumer. 
Ongoing Harm & Improper Conduct While the fraud dispute remains unresolved : Navy Federal has treated disputed balances as valid debt Access to basic banking services has been conditioned on repayment Credit reporting has been furnished inaccurately, with the account reported as paid/closed by XXXX while continuing monthly updates during dispute This conduct has resulted in continued financial harm, suppressed credit recovery, and coercive pressure to repay disputed fraud losses. 
Harm Summary Verified fraud losses and fraud-related fees Prolonged financial hardship after notice Credit damage from re-aging and inaccurate furnishing Loss of access to basic banking services Resolution Requested Full reimbursement of all verified fraud losses and related fees Suspension of collection and repayment requirements tied to disputed fraud Restoration of access to basic banking services Correction or deletion of all related credit reporting Written confirmation of corrective actions I am a victim of identity theft and unauthorized debit and ATM transactions involving my Navy Federal Credit Union checking account. XXXX was reported beginning in 2021, and I provided supporting documentation, including law-enforcement reporting and identity theft documentation. 
Despite notice, Navy Federal failed to timely investigate, contain, or remediate the account compromise. Unauthorized debit card use, ATM withdrawals, and fraud-related fees continued after notice across multiple statement cycles. These transactions were disputed, yet the activity was not effectively stopped. 
While the fraud dispute remains unresolved, Navy Federal has treated disputed balances as valid debt and conditioned my ability to open or access basic banking services on entering a repayment plan. Conditioning access to essential banking services on repayment of unresolved fraud losses has caused ongoing financial harm and effectively coerces payment on disputed fraud-related balances. 
Navy Federal has also furnished inaccurate and internally inconsistent credit reporting during the active dispute. The account is reported as paid/closed by grantor while being updated monthly and simultaneously used to restrict banking access unless payment is made. Continued monthly furnishing during an unresolved dispute misrepresents the account status, improperly re-ages the tradeline, suppresses credit recovery, and causes ongoing harm. 
The total resolution requested is {$110000.00}, reflecting verified fraud losses, fraud-related fees, credit harm, and consequential damages resulting from prolonged failure after notice and continued harm during the dispute.

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