Consumer complaint received 2025-06-21 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: NAVY FEDERAL CREDIT UNION
State: GA

Complaint narrative:
I am filing this formal complaint against Navy Federal Credit Union ( NFCU ) and its legal representative XXXXXXXX XXXX XXXX XXXX XXXX for engaging in deceptive, unfair, and unlawful practices related to the securitization of consumer credit card receivables, including my own, without providing proper disclosure, informed consent, or legal transparency. 

XXXX XXXX has securitized my credit card account by transferring the receivable into a trust structure that issues Asset-Backed Securities ( ABS ) to investors. These securities are then traded on the secondary market for profit. According to NFCUs own public disclosures in their investor filings ( see XXXX XXXX  ), they admit : The transferor will transfer all right, title and interest in the receivables to the issuing trust. 
Certificates will represent interests in the trust, not in any specific asset or receivable. 
XXXX XXXX remains the servicer after transfer but is no longer the owner of the receivables. 

This clearly confirms that XXXX XXXX no longer owns the receivable, yet continues to : Collect monthly payments from me as if they are still the creditor ; Report the account to credit bureaus under their name ; Authorize third-party legal action through XXXX XXXX XXXX XXXX XXXX XXXX who filed a lawsuit against me in Georgia ( XXXX No. XXXX ), despite NFCU having relinquished ownership.

This dual conductprofiting from the sale of the receivable to investors while simultaneously attempting to collect, report, and litigate as if no such sale occurredis fraudulent, deceptive, and in direct violation of consumer protection laws.

Violations of Consumer Financial Law : Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq.

Failure to disclose to the borrower that the account would be monetized and securitized. 

Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( b ) Continued reporting of an account that Navy Federal no longer owns misrepresents accuracy and ownership.

Gramm-Leach-Bliley Act ( GLBA ), 15 U.S.C. 68016809 ; 12 C.F.R. 1016 Unauthorized sharing of my personal financial data with underwriters, investors, and trustees.

Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Dodd-Frank Act, Title X NFCUs concealment of securitization and misrepresentation of their legal authority to collect constitutes a UDAAP violation.

Uniform Commercial Code ( UCC ) 3-301 NFCU is no longer the holder in due course of the account and therefore lacks standing to enforce the obligation. 

UCC 9-210 and 9-404 Failure to disclose assignment and refusal to allow consumer defenses against assignees.

Legal Misconduct and Harassment : The litigation initiated by XXXX XXXX XXXXXXXX XXXXacting on behalf of a party that lacks ownershipconstitutes abuse of the legal process. They are coercing payment on an obligation Navy Federal has already monetized and relinquished. This fraudulent litigation causes unnecessary legal costs, emotional stress, and reputational damage.

Requested Resolution : Immediate investigation into Navy Federals securitization and post-sale collection conduct.

Order Navy Federal to cease collecting or reporting on accounts they no longer legally own. 

Dismissal of any litigation based on securitized accounts. 

Restitution of all payments made on the securitized account, with interest. 

Monthly discharge of the balance to {$0.00} while keeping the account open. 

Enforcement penalties and referral to other regulatory or criminal authorities if necessary. 

Consumers like myself deserve transparency, fairness, and protection from hidden financial schemes that exploit our trust and rights. I request swift action by the CFPB.

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