Consumer complaint received 2026-05-21 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Application denials
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
Formal Regulatory Complaint against Navy Federal Credit Union Consumer Name : XXXX XXXX XXXX Lending Reference : Mortgage Refinance Application ( Loan Number : XXXX ) Date of Initial Approval : XX/XX/XXXX Date of Adverse Action/Withdrawal : XX/XX/XXXX Executive Summary Navy Federal Credit Union has committed severe, documented violations of federal consumer financial lawsspecifically the Gramm-Leach-Bliley Act ( GLBA ), the Fair Debt Collection Practices Act ( FDCPA ), the Equal Credit Opportunity Act ( ECOA ), and the Fair Credit Reporting Act ( FCRA ). Following full underwriting approval of my loan on XX/XX/XXXX, Navy Federal unlawfully withdrew and denied my application on XX/XX/XXXX, based on an inaccurate mixed-file identity mismatch and the active enforcement of a legally unenforceable, expired state debt. Count I : Federal Gramm-Leach-Bliley Act ( GLBA ) Privacy Violations ( 15 U.S.C. 6802 ) The Violation : Navy Federal Title Services actively breached financial privacy laws by initiating unauthorized contact and disclosing my private loan file data to a third-party collection attorney on XX/XX/XXXX, XXXX.The Harm : This disclosure was executed without my knowledge, prior consent, or a signed authorization form. The Documented Proof : Navy Federal 's own written communication dated XX/XX/XXXX, confirms they lacked legal authorization on XX/XX/XXXX, as they explicitly requested a wet-ink signature nearly a month after the illegal third-party disclosure had already occurred On XX/XX/XXXX. Count II : ECOA & FCRA Fair Lending Violations ( 15 U.S.C. 1681e ( b ) & 12 CFR 1002.9 ) The Violation : Navy Federal issued an adverse credit action and artificially withdrew an approved application based on an inaccurate public record identity mismatch. The Mismatch : The document Navy Federal weaponized to halt my loan is a XXXX XXXX XXXX XXXX ( XXXX ) judgment abstract belonging to an entirely different citizen : XXXX XXXX XXXX. The Harm : Importing and enforcing a third party 's derogatory records against my active loan file directly violates the core accuracy standards mandated by the FCRA and fair lending provisions under ECOA. Count III : Perpetuating FDCPA Deceptive Practices ( 15 U.S.C. 1692e ) The Violation : Navy Federal is actively adopting and enforcing an illegal extortion scheme orchestrated by a third-party debt collector utilizing facially defective records. Procedural Defect : The debt collector bypassed mandatory statutory procedures by taking a XXXX XXXX XXXX XXXX XXXX XXXX and filing it directly into foreign circuit courts, intentionally skipping the execution of Form XXXX in the home geographical circuit. The Expiration Cap : By accepting this procedural shortcut, Navy Federal is aiding an illegal attempt to falsely extend an expired, void XXXX debt into a fabricated 20-year lifespan. Under Virginia Code 16.1-69.55 ( B ) ( 4 ), because no proper transformation occurred, the strict 10-year expiration cap remains absolute. The Status of Debt : The judgments expired completely in XXXX and XXXX. They are legally dead and facially void. By conditioning my loan approval on this void debt, Navy Federal is misrepresenting the legal status of an unenforceable obligation in direct violation of FDCPA standards ( 15 U.S.C. 1692e ) .Concrete Consumer Damages Sustained Financial Injury : Financial loss due to the expiration and denial of a fully approved interest rate lock. Privacy Injury : Unlawful exposure of Nonpublic Personal Information ( NPI ) to adverse third-party actors. Severe Emotional Distress : Substantial personal stress and administrative burden caused by institutional negligence and bad-faith lending delays.

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