Consumer complaint received 2025-03-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: NAVY FEDERAL CREDIT UNION
State: LA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, LA XXXX Email : XXXX XX/XX/year> Certified Mail Return Receipt Requested Navy Federal Credit Union Attn : XXXX XXXX, President & CEO Attn : XXXX XXXX XXXX XXXX, Chairman Attn : XXXX XXXX XXXX, Chief Compliance Officer ( CRD # XXXX ) XXXX XXXX XXXX Address ] XXXX, VA XXXX Subject : Formal Demand for Debt Validation, Full Accounting, and Legal Standing Review Vehicle Loan # XXXX To the Officers and Trustees of Navy Federal Credit Union , This letter serves as a formal legal demand for the validation and enforceability of the alleged debt associated with Vehicle Loan # XXXX, which currently reflects a stated balance of {$17000.00}. I am requesting immediate validation of this debt, full disclosure of all accounting records, and verification of Navy Federals legal standing to enforce a lien on the vehicle. 

Upon requesting documentation regarding this account, I became aware that the agent handling my inquiry was unable to locate a signed promissory note associated with this alleged obligation. Under well-established principles of contract law and the Uniform Commercial Code ( UCC ) , an enforceable loan must be supported by a lawful contract, mutual acceptance, and valid consideration. Without a wet-ink signature promissory note evidencing the transaction, there is no enforceable obligation, and any continued attempts to claim otherwise may constitute unlawful misrepresentation.

Legal Basis for This Demand This request is made under the authority of the following federal and commercial statutes : UCC 3-104 Definition of a negotiable instrument.
UCC 3-301 Only the holder in due course may enforce a negotiable instrument.

UCC 3-302 Requirements to establish holder-in-due-course status.

UCC 3-305 Defenses and claims in recoupment for an obligor.

UCC 9-210 Right to demand a full accounting and proof of security interest.

15 U.S.C. 1692g ( Fair Debt Collection Practices Act ) Right to full debt validation.

15 U.S.C. 1681s-2 ( b ) ( Fair Credit Reporting Act ) Duty to report only verified information.

12 U.S.C. 2605 ( e ) ( Real Estate Settlement Procedures Act RESPA ) Right to a Qualified Written Request ( QWR ) for debt servicing verification.

Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq. Requirement for complete disclosure of loan terms.

Formal Demand for Validation and Full Accounting Under these legal provisions, I formally request the following : A Certified Copy of the Original Promissory Note ( UCC 3-104, 3-301, 3-302 ) Provide a legally binding, wet-ink signature promissory note as evidence of a valid agreement.

If no such note exists, provide a written admission confirming the absence of an executed agreement. 
Full Chain of Custody and Title Documentation ( UCC 9-210 ) A complete history of title ownership, UCC filings , and any security interests related to the vehicle.

Disclosure of whether this obligation was securitized, assigned, or transferred to any third-party entity for settlement.

Proof that Navy Federal retains holder-in-due-course status and has not relinquished its claim via debt securitization or assignment.

Proof of Consideration and Acceptance ( UCC 3-305 ) Evidence that valid consideration was exchanged to establish a binding contract. 
A forensic accounting record of the original loan deposit, identifying whether the funds were created through a book-entry transaction rather than an actual loan of assets. 
If the obligation was monetized, securitized, or settled through internal banking instruments, a full disclosure of such transactions. 
IRS Tax Reporting on This Loan Provide all IRS Forms 1099-A, 1099-C, and 1099-OID related to this account.

Verification of whether this debt has been discharged, offset, or otherwise satisfied in a manner that nullifies Navy Federals right to collect.

Desired Legal Resolution If Navy Federal can not produce the requested documentation within 30 days, the following legal resolutions are required : Immediate Release of the Vehicle Title and Lien Removal ( UCC 9-210 ) In the absence of an enforceable contract, Navy Federal must remove all claims and liens on the vehicle and issue a clear title immediately.

Any further attempt to retain a lien on the vehicle without lawful evidence of a secured interest will be treated as a fraudulent claim. 
Debt Cancellation and Account Closure ( UCC 3-305, 3-302 ) Under UCC 3-305, if there is no valid contractual obligation, the alleged debt must be canceled in its entirety, and all collection efforts must cease.

Any continued collection activity without legal proof of claim will constitute a violation of federal consumer protection laws. 
Deletion of the Loan from All Credit Reports ( 15 U.S.C. 1681s-2 ( b ) ) If the debt can not be lawfully validated, all reporting to consumer credit agencies must be immediately removed.

Any further reporting of an invalid obligation constitutes willful noncompliance under the Fair Credit Reporting Act ( FCRA ). 
Full IRS Tax Reporting Disclosure ( 26 U.S.C. 6050P, 1099-A, 1099-C, 1099-OID ) If Navy Federal has reported this debt as settled, written off, or securitized, I demand disclosure of all tax filings made in relation to this account.

Failure to provide IRS-mandated reporting documents may constitute improper financial reporting practices.

Cease and Desist All Collection Efforts ( 15 U.S.C. 1692g, FDCPA ) No further collection activity shall take place unless Navy Federal produces valid documentation proving its claim.

Continued collection activity without proper validation may result in legal and regulatory consequences.

Refund of Any Unlawful Payments If funds were collected without a valid, enforceable agreement, a full refund of those payments may be legally required.

If this matter proceeds to litigation, I reserve the right to seek damages for deceptive trade practices and unlawful debt collection. 
Notice of Legal Challenge and Potential Escalation If Navy Federal fails to comply with this request within 30 days, I will take immediate action, including : Filing formal complaints with the CFPB, FTC, OCC, and NCUA. 
Initiating legal action for fraudulent misrepresentation and unlawful debt collection. 
Demanding immediate removal of all related negative reporting from consumer credit files. 
This is a formal legal demand requiring immediate attention. Navy Federal has 30 days from receipt of this letter to provide a complete and legally compliant response. Failure to comply will be deemed an admission that no valid claim exists against the vehicle or the alleged debt.

Sincerely, XXXX XXXX

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