Consumer complaint received 2024-05-07 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: NAVY FEDERAL CREDIT UNION
State: TN

Complaint narrative:
I am writing to file a complaint regarding what turned out to be fraudulent charges purchased on my Navy Federal bank account for down payments on XXXX vehicle purchases over the past XXXX years. I am a consumer and have been a long time member of Navy Federal Credit Union. 

In XXXX XXXX I purchased a vehicle from XXXX in the down payment amount of {$4500.00} and XXXX XXXX I purchased a vehicle with XXXX XXXXXXXX XXXX in the down payment amount of {$1000.00} using my Navy Federal card account on both transactions. The down payments for the transactions were both made using my debit card. However, upon further investigation, I discovered that the dealerships had violated my rights and committed fraud by illegally charging me for down payments that were unlawful. 

Upon discovering this fraudulent activity, I immediately notified Navy Federal and requested a chargeback or dispute for the transactions. Although I initially authorized these charges, I later realized that they were fraudulent based on my review of the car contracts and relevant laws.

Despite providing Navy Federal with evidence that the transactions were fraudulent, I have not received refunds for either of the unauthorized down payments. I have taken all necessary steps to rectify this situation, including providing documentation and explanations to Navy Federal, but to no avail they have denied both of my disputes without properly investigating or without providing me proof of an investigation. Under the Electronic Funds Transfer Act, consumers have the right to dispute errors and request investigations, and financial institutions must promptly investigate and correct errors. 

I am deeply concerned about the lack of action taken by Navy Federal to address this issue and to protect me as a consumer. I believe that I am entitled to a refund or a chargeback for the illegitimate charges, as the dealerships knowingly and willingly charged me for down payments that were unlawful. The ( EFTA ) requires financial institutions to provide procedures for resolving errors related to electronic fund transfers, including unauthorized transactions, errors in account balances, and other discrepancies and NFCU never provided me with the steps or procedures for investigating. They responded back to me rather quickly that my claim was resolved. 

I request that the Consumer Financial Protection Bureau investigate this matter thoroughly and ensure that Navy Federal complies with its obligations to protect consumers from fraudulent transactions. I also request that the CFPB take appropriate enforcement action against Navy Federal if it is found to be in violation of consumer protection laws and regulations. 

I appreciate your prompt attention to this matter and look forward to a resolution that is fair and just.

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