Consumer complaint received 2026-06-02 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Title loan
Issue: Problem with the payoff process at the end of the loan — 
Company: NAVY FEDERAL CREDIT UNION
State: FL

Complaint narrative:
I understand this complaint relates to prior CFPB complaints involving the same Navy Federal Credit Union auto loan/title-lien issue, including Complaint Nos. XXXX and XXXX. I also understand that CFPB closed the most recent complaint based on NFCUs response. However, I not only dispute NFCUs response as incomplete and inaccurate, I am also filing this new complaint because NFCUs written response to me on XX/XX/XXXX creates new and material concerns that were not corrected before closure. Specifically, NFCU has since provided a payoff amount and stated it would release the Florida paper title after payoff, but still did not correct the APR, credit/refund excess interest, or provide a corrected payoff based on the original collateralized rate. NFCU also continues to characterize this issue as my failure to provide title/lien documentation , even though NFCUs own documents show that I repeatedly acted in good faith and provided the documentation NFCU requested XXXX This complaint is not intended to simply restate the prior complaints. The key issue is that NFCUs explanation or response remains contradicted by its own records, as shown by the attachments to this complaint, and there is new evidence that corroborates the continuing contradictions. On XX/XX/XXXX, I obtained/refinanced an NFCU auto loan for a XXXX XXXX XXXX at a 2.29 % collateralized APR. Due to COVID-related DMV issues, NFCU had me sign paperwork so it could be added as lienholder, but a clean paper title was subsequently sent to me instead. Upon learning that providing this would correct their lienholder issue, to comply in good faith, I later personally delivered this paper title to NFCU. Ironically, NFCU later produced a letter dated XX/XX/XXXX stating that it had not received title/lien documentation and warning that the APR could be increased. However, that letter lists my XXXX, Florida address which I did not live at in XX/XX/XXXX and was not even aware of that future address at that time. I signed a lease and moved there in XXXX of XXXX. This raises a serious concern about NFCUs timeline, mailing records, and reliance on that letter as proof that I was properly notified or failed to cooperate. On XX/XX/XXXX, I came into their local branch in XXXX XXXX, Florida and signed the attached Navy Federal Power of Attorney for Collateral. I was told this document specifically authorized NFCU to prepare and file the necessary documents to correct the assigned lienholder for the XXXX XXXX XXXX. It was notarized in Florida and contained my vehicle information, Florida drivers license information, and Florida address. This directly contradicts NFCUs continued position that I failed to provide the required title/lien documentation or refused to cooperate. Then, on XX/XX/XXXX, and again on XX/XX/XXXX, NFCU sent letters titled Request : First, and Request : Second The letters expressly began with the acknowledgment : We have received the title for the above-referenced collateral. Yet despite acknowledging receipt of the title, NFCU continued to request additional steps to ensure they were reflected as first lienholder and again required that I pay {$75.00} for the DMV fee. These letters fail to account for the Power of Attorney I had just signed at NFCUs local Florida branch on XX/XX/XXXX, which was intended to allow NFCU to complete exactly that lien/title work. After CFPB Complaint No. XXXX, NFCU stated XXXX XX/XX/XXXX that as a 'member courtesy, ' it restored the collateralized rate, credited excess interest, sent a Florida lien application , and would waive the DMV lien-recording fee . In XX/XX/XXXX, I again signed another document as requested and submitted it at the XXXX XXXX, Florida branch. I also confirmed with NFCUs auto loan department that NFCU had what it needed, and understood the issue to be resolved. Despite this, NFCU raised the APR again in XX/XX/XXXX from 2.29 % to 14.79 % based on the same title/lien issue . I have acted in good faith throughout this loan. I had possession of the clean paper title and could have sold or transferred the vehicle at any point, but instead I repeatedly tried to help NFCU correct its lien/title issue and sign the documents NFCU requested . I filed CFPB Complaint No. XXXX on XX/XX/XXXX after NFCU refused to recalculate my true balance and allow me to pay off the loan which was approximately {$410.00} as they continued to insist that I must first pay for new lienholder placement at my cost. Unfortunately, CFPB closed that complaint based on NFCUs response. However, I dispute NFCUs response because NFCU claims that it had requested a Certificate of Title or other proof of ownership naming NFCU as first lienholder and that the APR was increased due to non-receipt of the required documentation. That characterization omits the key facts that I previously provided the clean paper title, signed a notarized Power of Attorney for Collateral, and later signed and submitted additional Florida documentation after NFCUs prior CFPB response. I have also new evidence regarding NFCUs XX/XX/XXXX secure-message response on their website. NFCU stated that my remaining balance was now {$18.00}, valid through XX/XX/XXXX, and that upon payment in full, NFCU would automatically release the Florida paper title within 10 business days. However, NFCU failed to lower my rate and continues to refuse my request to recalculate the loan at the correct 2.29 % APR and credit/refund excess interest caused by the rate increase, provide a corrected payoff amount, or confirm that I will not be charged title/lien/DMV/processing fees. I am also attaching current images of warning messages on my account requiring this lien placement to resolve the account. NFCUs position is inconsistent and taking an unfair advantage of an unfortunate situation. If NFCU has the ability to release the Florida paper title after payoff, and if NFCU previously acknowledged receipt of the title, then it makes little practical sense to require a new lien placement before correcting the APR on a loan that is essentially paid off. As of approximately XX/XX/XXXX, the APR remained 14.79 % and the balance was approximately {$18.00}. I simply want the account to be corrected so that the final payoff amount can be resolved and this loan can be closed.

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