Consumer complaint received 2026-03-17 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Cashing a check
Company: NAVY FEDERAL CREDIT UNION
State: PA

Complaint narrative:
On XX/XX/year>, check # XXXX for {$20000.00} was issued to me by XXXX XXXX as payment for the sale of my personal vehicle. On XX/XX/year>, I deposited this check via mobile deposit into my account at Navy Federal Credit Union. Shortly after submitting the deposit, I received an email stating that the mobile deposit had been approved and was being processed, and that the funds would be available within approximately two business days. On XX/XX/year>, I received a second notice stating that {$20000.00} of the {$20000.00} deposit would be delayed while the check was processed, and that the funds would likely become available within five business days. At that time there was no indication that the check was fraudulent or invalid. On XX/XX/year>, I received an email stating that my account had been restricted due to potentially suspicious activity. I immediately contacted the credit union by phone to understand the situation. During that phone call I was told : the credit union would not accept the check my account would be closed I could do what I wanted with the check. I specifically asked whether I could take the check to another bank and deposit it there. The representative again told me that I could do what I wanted with the check. At no time during this conversation was I informed : that the check was still in the clearing process that funds had already been withdrawn from the issuers account that the item was under investigation that redepositing the check elsewhere could create complications Instead, I was provided with a Security Appeal Form if I wished to challenge the decision to close my account. Based on the information provided by Navy Federal Credit Union, I reasonably believed the check had simply been rejected and that I was free to deposit it elsewhere. I subsequently deposited the check into my account at another bank ( XXXX Bank ). XXXX initially accepted the deposit and made the funds pending but available. Based on that availability, I transferred {$20000.00} to my son so he could purchase a vehicle near his duty station at XXXX XXXX. Shortly afterward, the check was returned and my XXXX account became approximately {$20000.00} negative, creating significant financial disruption. When I began investigating the situation, I learned that the check had already been processed elsewhere, which conflicted with what Navy Federal had told me on XX/XX/XXXX. In order to clarify the situation, I contacted the issuing bank directly. A branch manager at XXXX Bank confirmed that : the check was valid the check was intentionally written by the account holder the funds were available in the account The issuer of the check also confirmed directly that : he never contacted Navy Federal Credit Union he never reported the check as fraudulent The issuer also provided documentation from his bank statement showing that {$20000.00} had been withdrawn from his account, confirming that the check entered the banking system. Additionally, my Navy Federal account statement for the period XX/XX/XXXX through XX/XX/year> shows an ending balance of approximately {$20000.00}, indicating that the funds were recorded within the account during that period despite the account being restricted and later closed. Despite the verification from the issuing bank and the maker of the check, Navy Federal Credit Union has continued to claim that the check was considered high risk. Throughout this process, Navy Federal Credit Union has provided multiple conflicting explanations for why the check was not accepted. At different times I was told that : the issuer reported the check as fraud Navy Federal contacted the issuer and confirmed fraud Navy Federal contacted the issuing bank to verify the check However, both the issuer and the issuing bank confirmed that these contacts never occurred and that the check was valid. As of today : my Navy Federal account has been closed my account statement shows the {$20000.00} balance during the statement period the issuer has not received the funds back I have not received the funds Navy Federal Credit Union has not provided clear written documentation explaining where the {$20000.00} currently resides or how the check was ultimately processed. This situation has caused significant financial harm. My XXXX account became approximately {$20000.00} negative after the returned item, and the funds were intended to help my son purchase a vehicle while he is stationed near XXXX XXXX before his upcoming XXXX. Because of the unresolved situation, he has been left without reliable transportation during the final months before XXXX. Despite my repeated efforts to cooperate and resolve the matter in good faith, Navy Federal Credit Union has not provided clear answers regarding the disposition of the funds.

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