Consumer complaint received 2025-08-25 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: NAVY FEDERAL CREDIT UNION
State: GA

Complaint narrative:
Consumer Complaint Submission Against : Navy Federal Credit Union ( NFCU ) Summary of Complaint : I am filing this complaint because Navy Federal Credit Union ( NFCU ) mishandled a fraudulent charge dispute on my account, improperly charged off my checking account, denied me proper victim protections, and treated me unprofessionally during multiple interactions. Their inconsistent actions caused financial hardship, confusion, and undue stress. 

Timeline of Events : Around XX/XX/year>XXXX  : I submitted a fraud claim for a {$15.00} unauthorized transaction. Navy Federal initially denied my claim. Later, the {$15.00} was credited to my savings account, confirming I won the dispute decision. 

Account Closure : Despite winning the dispute, NFCU closed my original checking account, citing charge-off. I was later informed by NFCU employees that the account was only closed after the debt was satisfied, and that reopening or opening a new account was possible only once the charge-off was cleared. This was confirmed by an agent named XXXX from the charge-off department. 

Conflicting Instructions : Another NFCU agent ( a young lady, prior to XXXX ) specifically advised me to open a new checking account since the charge-off was reported as paid. I successfully did so, which, by Navy Federals own policy, shows that the charge-off had been resolved. 

Removal of {$15.00} Credit : Although the {$15.00} was credited to my savings account, once the new checking account was opened, that amount was removed & despite my repeated requests prior to the XX/XX/year>XXXX  charge-off that this {$15.00} credit be applied to prevent closure. Multiple NFCU employees told me they had the power to apply the funds, but no action was taken. 

Interactions on XXXX : I spoke with XXXX ( NFCU employee ), who placed me on hold for a supervisor after I explained my case. 

At exactly XXXX XXXX, I received a written response from Navy Federal to my submitted Request for Review and Correction of Account Handling | Charge-Off and Reversal. 

I was transferred to Latara ( NFCU representative ), who rudely hung up on me and told me I was not the victim in the situation even though Navy Federal already honored my {$15.00} dispute decision.

Theres also a claim ( unresolved $ XXXX dispute ) tied to this situation that was never filed by NFCU employees at the time I requested it. 

Issues Raised : 1. Mishandling of Fraud Claim I was determined to be the victim and awarded a {$15.00} credit, but my account was still charged off and closed. 

2. Inconsistent and Conflicting Information Employees ( XXXX, XXXX, and others ) gave contradictory explanations about whether my charge-off was satisfied and how credits could be applied. 

3. Failure to Apply Credit I repeatedly requested that the {$15.00} be applied before closure, and I was told it could be, but NFCU failed to act. 

4. Unprofessional Conduct Representative XXXX hung up on me, denied my victim status, and There was a unfiled $ XXXX dispute that NFCU failed to process correctly during time of all this. 

5. Hardship Caused The closure and mishandling affected me severely, as many business transactions were linked to my checking account, causing delays and stress.

* Navy Federals handling of my dispute violates 15 U.S. Code 1693f and Regulation E ( 12 CFR 1005.11 ), which require fair investigation and proper application of credits for fraudulent transactions. Furthermore, their closure of my account despite acknowledging the fraudulent activity constitutes an unfair and abusive practice under 12 U.S.C. 5531. I was treated as if I was not the victim, despite winning the decision, which caused direct financial hardship and business disruption.

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