Consumer complaint received 2025-09-04 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: MI

Complaint narrative:
Consumer Financial Protection Bureau ( CFPB ) XXXX XXXX XXXX XXXX  XXXX DC XXXX From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX MI XXXX Email : XXXX Phone : ( XXXX ) XXXX Date : XX/XX/year> Subject : Complaint Against Navy Federal Credit Union for Improper Check Hold , Defamation, Failure to Disclose, and Financial Damages -- - Dear CFPB Representative, I am filing this formal complaint against Navy Federal Credit Union ( NFCU ) for violations of banking regulations, U.C.C. provisions, and fair disclosure requirements, as well as for reputational and financial harm caused by their handling of a legitimate check deposit, partial release of funds, and the withholding of material information while implying fraudulent intent. 


-- - Summary of Events XXXX. On XX/XX/year>, I deposited a legitimate check in the amount of {$2100.00} from XXXXXXXX XXXX XXXX ( drawn on XXXX XXXXXXXX XXXX  XXXX. ) via mobile deposit into my account ending in XXXX. 


XXXX. Navy Federal partially released {$270.00} of the deposited funds, while placing a hold on {$1800.00}. 


XXXX. On XX/XX/year>, I received an email from Navy Federal stating that information received triggered their decision to hold the remaining balance.

4. Upon requesting the specific information relied upon, Navy Federal refused to disclose the data or their reasoning.

5. This refusal, combined with their internal notations implying risk or fraud, defamed my character by suggesting criminal activity ( " uttering and publishing '' ) without justification, while simultaneously impeding my access to my own funds. 




-- - Legal and Regulatory Basis U.C.C. 4-215 & 4-402 : Requires banks to act in good faith, promptly credit funds, and disclose adverse reasons for delayed or restricted availability of a negotiable instrument.

NFCU Funds Availability and Disclosure Policies : Mandates transparency and notification of reasons for a funds hold.

12 CFR 1005.11 ( CFPB Regulation E ) : Prohibits withholding material information from consumers regarding a financial transaction that directly affects funds availability. 

Defamation/Libel : Accusing or implying fraudulent activity without evidence constitutes reputational harm and unjustified disparagement of the account holder. 



-- - Harm Suffered Financial Harm : Disruption of planned financial transactions and business activities that were to be supported by the deposited funds. 

Reputational Damage : Unwarranted suspicion and internal flagging that unjustly harmed my credibility with the institution. 

Emotional and Operational Stress : Created undue hardship and loss of confidence in my banking relationship. 



-- - Requested Resolution To remedy these harms and ensure equitable relief, I am requesting the following : 1. Immediate release of the remaining {$1800.00} held from the deposit.

2. Full disclosure of the information and reasoning relied upon to justify the hold and implied fraud suspicion.

3. Written acknowledgment and formal apology for the improper handling of my account and for the libelous implication of fraudulent intent.

4. Equitable Consideration for Damages : Provision of open lines of credit equal to or double the intended business value originally planned, including : Approval of a Unsecured Credit Card matching at least the amount of the deposited check. 

Approval of a Secured Loan or credit line to support the intended financial operations. 




5. Implementation of corrective training and procedural changes to prevent similar consumer harm.

-- - Enclosures : Copy of the deposited check ( front and back ) Screenshot of email notification from NFCU regarding the hold Account transaction records showing partial release and hold -- - Respectfully, XXXX XXXX XXXX XXXX

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