Consumer complaint received 2024-02-07 00:00:00
Product: Checking or savings account — Savings account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: FL

Complaint narrative:
I have multiple accounts with Navy Federal including a checking and savings account. On XX/XX/XXXX I was the victim of a scam, in which I was contacted by XXXX and was told I was speaking with a Navy Federal representative, that they had performed system updates to the online banking system and they needed to verify some of information. I didn't think anything fraudulent was occurring since it was a Navy Fed phone number and the online banking system is updated from time to time. The individual asked me to verify my social security number, next provide the verification code I had just received to my cell phone. Last they confirmed my date of birth, email address, and mailing address..all information they already had and stated that was what was on file. They thanked me for being a Navy Federal member and ended the call. A few hours later, I logged into my account and everything seemed fine and I went on with my day. I was completely unaware it was a scheme to gain access to my account and perform fraudulent activity. On the the following day, XX/XX/XXXX, they ended up putting { {$3800.00} } in my account and transferring it back out somewhere. I was not made aware of this until I attempted to log into my account on the night of XX/XX/XXXX, which was my birthday, when I was given a message that I needed to call into NavyFed to regain access. On XX/XX/XXXX, I called in and ended finding out my checking account was flagged for suspicious activity and what had occurred. While speaking to the fraud department, my checking and savings accounts were closed and new accounts opened, a new debit card was issued, and all security details were changed. On XX/XX/XXXX, I logged into my Savings account to find a { - {$3800.00} } deduction titled " Savings Adjustment '', taking the over { {$2000.00} } that was in my savings account and leaving a { - {$1700.00} } balance. I now have access to no money for my family, including making a payment to pay down the balance of my Navy Federal Cash Rewards CC ( due today the XXXX ) which will post to my credit report at its limit of {$500.00} and negatively impact my credit score. When I called into Navy Federal I was told that their investigation resulted in holding me at fault. The representative said they could not give me no further information and to wait for a letter from Navy Federal regarding the initial investigation. At that point I mentioned that according to the Electronic Funds Transfer Act-Regulation E ( 12 CFR 205.6 ), I lawfully can only be responsible for either no liability at all or {$50.00} depending on the classification : Loss or Theft of Transaction Device/Unauthorized Transfer, and that Navy Federal was violating the EFT Act by deducting { {$3800.00} } from a new Savings account that wasn't involved in any of the fraudulent activity. At that point I was told I could be emailed an appeal form, and that it could take up to 15 days for it to be addressed. I informed the representative, who would not escalate the call to a supervisor, that I would be making a complaint with the NCUA, FTC, CFPB, and Virginia Attorney Generals office. I provided them the phone numbers they called me from, and all other pertinent information. Navy Federal blatantly chose to disregard the Electronic Funds Transfer Act, deduct funds from an account that was not involved in the activity, and disregard any attempt to fix the problem causing me and my family a tremendous amount of stress and inconvenience.

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