Consumer complaint received 2025-12-15 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: NAVY FEDERAL CREDIT UNION
State: MO

Complaint narrative:
I am submitting this complaint to report inaccurate, fraudulent, and improperly verified information being furnished by Navy Federal Credit Union and reported on my consumer credit reports. The account in question does not belong to me, was not opened or authorized by me, and is the direct result of identity theft. Despite my efforts to resolve this matter through proper channels, including filing an Identity Theft Report with the Federal Trade Commission ( FTC ) and disputing the account with the credit reporting agencies, the issue has not been handled in accordance with federal consumer protection laws. 

Discovery of the Fraudulent Navy Federal Credit Union Account I became aware that a Navy Federal Credit Union account was appearing on my credit reports as a collection and/or charge-off. I did not recognize this account, and after reviewing my own records, I confirmed that I never opened this account, never applied for it, never authorized it, and never benefited from it in any way. 

This discovery immediately raised concerns of identity theft. I took the matter seriously and acted promptly, knowing that fraudulent accounts can cause long-term damage if not corrected quickly. 

Actions I Took as a Consumer Once I determined that the Navy Federal Credit Union account was fraudulent, I took the following steps : Filed an Identity Theft Report with the Federal Trade Commission ( FTC ) to formally document that I am a victim of identity theft. 

Disputed the Navy Federal Credit Union account directly with the credit reporting agencies, clearly stating that the account does not belong to me. 

Requested that the account be blocked and removed under the Fair Credit Reporting Act ( FCRA ), specifically under the identity theft provisions of the law. 

Provided information and documentation when requested to verify that I am the consumer submitting the dispute. 

These are exactly the steps consumers are instructed to take when identity theft occurs. 

Failure to Properly Remove or Block the Fraudulent Account Despite filing an FTC Identity Theft Report and disputing the account, the Navy Federal Credit Union tradeline continued to appear on my credit reports. In some instances, disputes were closed without meaningful explanation, and the account remained listed as a negative item.

Under FCRA 605B, once a consumer provides an identity theft report and identifies fraudulent information, the credit reporting agency must block that information from the consumers credit report. The continued presence of this account indicates that either Navy Federal Credit Union failed to properly respond to the dispute or that the reinvestigation process was not conducted in a reasonable or lawful manner. 

Lack of Proper Verification by Navy Federal Credit Union At no point was I provided with documentation showing that I opened or authorized this account. I have not been shown : A signed application A signed contract Proof of identity verification at account opening Any documentation tying me personally to the account Without such documentation, there is no lawful basis for Navy Federal Credit Union to continue furnishing this account as belonging to me. Furnishing information without proper verification violates the requirement under FCRA XXXX that furnishers provide accurate information and conduct reasonable investigations when disputes arise. 

Improper Impact on My Credit Report The continued reporting of this fraudulent Navy Federal Credit Union account has caused multiple forms of harm : It appears as a collection or charge-off, which is highly damaging to a credit profile. 

It negatively affects my credit scores. 

It creates the false impression that I failed to pay an obligation I never incurred. 

It complicates my ability to obtain fair credit, housing, or financial services. 

This harm is especially concerning because it is entirely the result of fraud, not any action on my part.

Connection to Other Credit Reporting Issues The presence of this fraudulent account also affects other areas of my credit report. Late payment reporting and other negative information may be influenced or amplified by the existence of this charge-off. When a fraudulent account remains, it distorts the accuracy of the entire credit profile.

This is precisely why Congress included strong identity theft protections in the FCRAto prevent victims from being repeatedly harmed by information that is known to be fraudulent.

Why This Matter Was Escalated to the CFPB I escalated this issue to the Consumer Financial Protection Bureau because : I filed an FTC Identity Theft Report, yet the account was not promptly removed. 

Disputes did not result in a full and transparent resolution. 

I was not provided with proof that the account belonged to me. 

The continued reporting of this account violates the spirit and letter of federal consumer protection laws. 

Consumers who follow the law, file identity theft reports, and cooperate with investigations should not be forced to repeatedly dispute the same fraudulent account.

Legal and Procedural Concerns This situation raises concerns under multiple provisions of the Fair Credit Reporting Act, including : FCRA 605B Failure to block identity-theft-related information.

FCRA 607 ( b ) Failure to ensure maximum possible accuracy.

FCRA 611 Failure to conduct a reasonable reinvestigation.

FCRA 623 Furnishers duty to investigate disputes and report accurately.

The continued reporting of a fraudulent account after proper notice undermines consumer confidence in the credit reporting system and places an unfair burd
en on victims of identity theft.

Good-Faith Effort on My Part Throughout this process, I have acted in good faith : I did not ignore the issue. 

I followed the correct procedures. 

I filed the required FTC report. 

I disputed the account appropriately. 

I provided identity verification when requested. 

I am not seeking special treatmentonly the enforcement of the protections that already exist under federal law. 

Summary of What Happened In summary : A Navy Federal Credit Union account was reported on my credit file. 

I did not open or authorize this account. 

The account is the result of identity theft. 

I filed an FTC Identity Theft Report. 

I disputed the account with the credit bureaus. 

The account was not properly removed or blocked. 

The continued reporting caused financial and credit harm. 

I escalated the issue to the CFPB due to lack of resolution. 

Closing Statement This complaint is submitted so that the CFPB can review Navy Federal Credit Unions handling of a clearly fraudulent account and ensure compliance with federal consumer protection laws. Identity theft victims should not bear the burden of inaccurate reporting once they have taken the required steps to report fraud. 

I am requesting that this matter be reviewed carefully and that corrective action be taken so that my credit reports accurately reflect only accounts that legitimately belong to me.

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