Consumer complaint received 2025-08-26 00:00:00
Product: Checking or savings account — Savings account
Issue: Managing an account — Banking errors
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
I am writing to file a formal complaint regarding the handling of my deceased mother 's account following her passing on XX/XX/XXXX. This complaint addresses the negligence on the part of Navy Federal Credit Union ( NFCU ) in properly auditing her account, leading to the erroneous transfer of Social Security funds and the subsequent demand for their reclamation from me. 
On XX/XX/XXXX, I was contacted by an NFCU Survivor Support representative who informed me that the Social Security Administration ( SSA ) had contacted NFCU regarding a reclamation of funds exceeding {$11000.00}. These funds were apparently distributed to my mother 's account back in XXXX. We discussed the XXXX transfers that occurred on XX/XX/XXXX, from her checking and saving accounts, which were subsequently moved to my savings account as I was the designated Payable on Death ( POD ) beneficiary. I provided NFCU with my XXXX XXXX XXXX certificate prior to these transfers, and the NFCU representative acknowledged that the failure to withhold any Social Security payments was an oversight by the credit union. I requested to receive all associated documentation regarding this matter for my review. 
On XX/XX/XXXX, I contacted the XXXX directly to inquire about this reclamation. The XXXX representative stated that it is the financial institution 's responsibility to audit the account and prevent such erroneous transfers. The XXXX also confirmed that they have no record of my mother 's Social Security funds being distributed to me directly by the XXXX. They further stated that if funds were required from me, the XXXX would send me an official notification letter. 
Later on XX/XX/XXXX, at approximately XXXX XXXX XXXX, I received a voicemail from the NFCU Survivor Support representative stating that she had spoken with her supervisor and that NFCU " had to take the funds. '' She then asked me which accounts I would like the money pulled from. 
I am submitting this complaint due to the clear negligence and oversight on the part of Navy Federal Credit Union. I was not a co-owner on my mothers accounts and had no knowledge of the specific deposits or withdrawals. I provided NFCU with her death certificate, which established the exact date of her passing. It was NFCU 's responsibility to properly audit her account at that time and to identify and withhold any Social Security payments received after the date of death, as is the standard procedure. The failure to do so is an internal error on the credit unions part. 
I should not be held financially responsible for this error. As the beneficiary, I was only privy to the total amounts in the accounts and had no way of knowing that XXXX XXXX XXXX were improperly included in the distribution. The error lies with NFCU 's failure to perform its due diligence and correctly handle the account of a deceased member. It is part of NFCUs job to understand the structure of Social Security payments and to take the appropriate steps to ensure that funds received after the date of death are returned to the XXXX.

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