Consumer complaint received 2024-09-25 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: CA

Complaint narrative:
Formal Demand for Custodianship, Control, XXXX Accounting, Rescission, and Immediate Remedy for Account # XXXX [ XXXX XXXX XXXX ] [ c/o XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX California, XXXX ] [ XXXX ] [ ( XXXX ) XXXX ] Date : [ XX/XX/XXXX ] XXXX XXXX Navy Federal Credit Union XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Dear XXXX XXXX, I am writing to formally assert my rights under the Uniform Commercial Code ( UCC ), the Uniform Transfers to Minors Act ( UTMA ), and federal securities law. I demand immediate action regarding my Navy Federal Credit account XXXX # XXXX, which has been mishandled based on multiple violations of UCC law and mismanagement under securities regulations. Additionally, I demand that Navy Federal recognize me as the custodian of this account, without any limitations or restrictions that may apply to minor accounts. The credit balance reflected on my recent billing statements of {$8700.00} constitutes an amount owed to me, and your failure to address this issue in a timely manner violates several legal provisions, as detailed below. 

1. Rescission of Interest in the Credit Card Member Agreement Effective immediately, I am rescinding any and all interest or rights I may have granted Discover under the original credit card member agreement. This rescission applies to any control Navy Federal Credit Union has over the account or funds and negates any claim Navy Federal Credit Union may have had to enforce terms of the original agreement. Going forward, Navy Federal Credit Union will have no claim or interest in the credit balance or in controlling the terms of the account. 

2. Demand for Control and Custodianship of the Account ( UCC 9-104 and UTMA ) Under UCC 9-104 and principles outlined in the Uniform Transfers to Minors Act ( UTMA ), I, as the secured party and legal custodian, demand immediate control and custodianship of my account. This includes updating all account records to reflect my status as the sole custodian, removing any limitations, and transferring control of the account to the XXXX : XXXX XXXX XXXX XXXX XXXX 

3. Retitling the Current Account to the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX of my custodianship and legal control over the account, I formally request that the current Navy Federal Credit Union account XXXX XXXX be retitled under the name XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX This change will ensure that all future transactions, account records, and legal obligations are reflected under the name of the trust. 

4. Violation of UCC Article 9 - Secured Transactions ( UCC 9-607, 9-609-610 ) Navy Federal Credit Unions failure to properly manage the credit balance violates UCC 9-607 and 9-609-610. These sections require the secured party ( Navy Federal Credit Union ) to handle and account for collateral ( my credit balance ) in good faith and ensure that the rightful party ( myself ) receives proper credit or payment. 

5. Billing Statement as a Security ( UCC Article 8 - Investment Securities ) Under UCC Article 8 ( California UCC 8102 ), a billing statement that reflects a credit balance is treated as a security. As such, Navy Federal Credit Union has a legal obligation to recognize the credit balance and refund it to me as the rightful claimant. 

6. Custodianship, Removal of Minor Restrictions, and Request for GAAP Accounting As the sole account holder and custodian, I hereby demand that Navy Federal : 1. Retitle the current account # XXXX under the XXXX : XXXX XXXX XXXX XXXX XXXX 
2. Remove any restrictions associated with minor accounts and confirm that my account is now fully under my control as an adult with no limitations. 
3. Provide a GAAP-compliant accounting of my accounts financial activity, including any past and present transactions, credit balances, and any outstanding obligations. 
4. Provide written acknowledgment that these updates have been made to all relevant records and that no future restrictions will be imposed without my explicit consent. 

7. Threat of Securities Fraud Report to the SEC As a publicly traded company, Navy Federal Credit Union has obligations under federal securities laws to provide accurate and transparent financial reporting. The continued mishandling of my credit account, including failure to refund the credit balance owed to me, constitutes a potential violation of SEC Rule 10b-5 under the Securities Exchange Act of 1934. If Navy Federal Credit Union does not resolve this matter immediately, I will report these violations to the Securities and Exchange Commission ( SEC ) for further investigation. 

8. Summary of Additional Legal and Regulatory Actions I Will Pursue If Navy Federal Credit Union does not respond or comply within 48 hours, I will take the following actions to enforce my rights : 1. File a Complaint with the CFPB and the XXXX : I will submit a formal complaint to the Consumer Financial Protection Bureau ( CFPB ), which oversees credit card practices. The CFPB will require a response from Navy Federal Credit Union within 15 days. 
2. Report to the State Attorney General and OCC : I will escalate this matter by filing a complaint with the California Attorney Generals Office and the Office of the Comptroller of the Currency ( OCC ), both of which have the authority to investigate and enforce compliance. 
3. Dispute with Credit Reporting Agencies : If this error has affected my credit report, I will file disputes with all major credit reporting agencies to ensure accurate reporting. 
4. Legal Action for UCC Violations : I will file a lawsuit for breach of contract, breach of fiduciary duty, and violations of UCC Articles 9, 8, and 3, seeking full damages and restitution. 
5. Arbitration or Public Complaint via XXXX  : I will pursue arbitration or file a public complaint with the XXXX XXXX XXXX  ( XXXX ) if necessary, to apply further pressure. 

Sincerely, [ ] Trustee, XXXX XXXX XXXX XXXX XXXX XXXX XXXX Mail XXXX XXXX XXXX XXXX XXXX XXXX [ XXXX XXXX XXXX ] [ c/o XXXX XXXX XXXX XXXX  ] [ XXXX XXXX XXXX California XXXX ] XXXX XXXX ] [ ( XXXX ) XXXX ] [ XXXX XXXX ] Navy Federal Credit Union [ XXXX XXXX XXXX XXXX XXXX ] [ XXXX XXXX Virginia XXXX ] Subject : Notice of Equitable Interest and Request for Accounting To Whom It May Concern, I am writing to formally assert my equitable interest in the accounts associated with Navy Federal Credit Union. It has come to my attention that Navy Federal claims I owe an alleged debt. However, the billing statements I have received reflect a positive balance, indicating that my accounts should possess transferable credits or should be accompanied by a check. 

# # # Allegations and Requests : 1. **Insolvency Concerns** : It has been noted that Navy Federal 's bankers have exhibited signs of inconsistency and insolvency. I request a proper accounting of my accounts, including all forms and CUSIPs associated with my account, including 1099-C and 1099-OID forms, so that I may accurately assess my tax obligations and balance my books. 

2. **Request for Documentation** : I also require a copy of Navy Federal 's GAAP banking principles, SEC filings , and prospectuses related to my accounts. This information is essential for transparency and understanding the financial practices employed by your institution. 

3. **Maxims of Equity and Legal References** : Under the principles of equity, it is established that equity regards as done that which ought to be done. Additionally, I invoke the following USC and UCC codes that support my position : - **UCC 1-103** : Principles of law and equity supplement the UCC. 
- **UCC 3-203** : Transfer of rights in an instrument. 
- **USC Title 15 1692** : Fair Debt Collection Practices Act, prohibiting false or misleading representations. 

4. **Balancing Books with the IRS** : I request that all accounts be balanced properly with the IRS. Furthermore, I demand the reopening of any accounts that were unlawfully closed, allowing them to be used privately for offsets, offset transfers, debits, and discharges. 

5. **Original Creditor and Surety** : I declare that I am the original creditor and surety on this account, and I have been subjected to false and misleading representations and negligence on the part of Navy Federal . 

XXXX Mail # XXXX XXXX XXXX XXXX XXXX # # # Demand for Action : Navy Federal has 15 days from the receipt of this notice to rectify all accounts and provide the requested documentation. Should this not be resolved satisfactorily, I will expect all agents involved in this matter to vacate their positions within the company. 

# # # Request for Validation of Debt : I request validation of the alleged debt as provided for under the Fair Debt Collection Practices Act. This includes proof of the debt 's legitimacy and any associated documentation that supports Navy Federal 's claims against me. 

# # # Conditional Acceptance : This notice serves as a conditional acceptance of the current situation, pending the satisfactory resolution of the issues outlined above. Should Navy Federal fail to comply with my requests, I will consider taking further action to protect my rights and interests. 

# # # Estoppel and Acquiescence : By failing to address these matters in a timely and proper manner, Navy Federal is estopped from denying my claims. Your prior conduct and representations have led me to rely on your assurances regarding my accounts and financial standing. 

# # # Prayer for Relief : I seek relief for all injuries sustained by myself and my children as a result of Navy Federals actions, including but not limited to emotional distress and financial hardship. I expect a formal acceptance of this notice upon receipt. 

Thank you for your immediate attention to these serious matters. I look forward to your prompt response. 

Sincerely, [ ] [ XXXX XXXX XXXXXXXX, XXXX ] Done In Good Faith.

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