Consumer complaint received 2024-09-19 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: NAVY FEDERAL CREDIT UNION
State: GA

Complaint narrative:
I, XXXX XXXX, am submitting this formal complaint against Navy Federal Credit Union ( NFCU ) for their refusal to honor a lawful instrument I issued as payment toward my now-closed credit card account. Despite my good faith effort to settle the outstanding balance, Navy Federal Credit Union has not accepted the lawful payment. Instead, I have been subjected to undue restrictions and system-wide blocks that have severely hindered my ability to conduct regular banking practices. 
On XX/XX/year>, I provided Navy Federal Credit Union with a lawful payment instrument to settle my credit card bill. However, Navy Federal has refused to honor this payment without providing any legal or justifiable explanation. This refusal resulted in the closure of my credit card account, despite my attempts to resolve the matter in good faith. In addition, I provided Navy Federal with specific instructions on how the negotiable instrument should be handled and processed. Following this, I issued another negotiable instrument when an NFCU agent informed me that my original instrument had been thrown away. 
I have made multiple attempts by phone and mail to check the status of my credit card account. However, I have not received any satisfactory response or acknowledgment of the lawful instrument. Despite this, Navy Federal continues to claim that they do not have the instrument on file. As of XX/XX/year>, I have not received either instrument back, both of which were sent via registered mail with return receipt requested. I possess copies of all documents and receipts as proof, which I can provide upon request. 
As of XX/XX/year>, XXXX XXXX continues to send me presentments and collection calls for payment of my credit card bill, even though I attempted to issue lawful payment over four months ago. In retaliation for not accepting my payment, Navy Federal closed my credit card account, claiming I was behind on two payments. I informed them that I was in the middle of a billing dispute and that no adverse action should be taken on my account until the dispute was resolved. My request for arbitration and/or mediation has not been honored, and they continue to report delinquency on my credit report and refuse to reinstate my card or discuss the payment. Both instruments were indorsed to receive remittance back to my account. 
Furthermore, Navy Federal Credit Union has placed unnecessary restrictions on all my accounts, effectively preventing me from performing routine banking transactions. I am unable to access my accounts through the XXXX XXXX or in-person branches. Despite writing multiple letters to their security department, I continue to be referred back and forth between email and phone communications, which has become an endless loop. When I attempt to visit a branch, I am asked to leave the premises and am directed back to their online platform. This is causing severe economic strain. I currently have two personal accounts, two business accounts, and one credit card with Navy Federal, and their actions are interfering with commerce. 
I am formally requesting that the Consumer Financial Protection Bureau ( CFPB ) investigate this matter, as I believe Navy Federal Credit Union 's actions are in violation of my consumer rights. The refusal to accept lawful payment, coupled with the imposed restrictions on my accounts, has caused undue financial hardship and stress. 
In this complaint, I insist the following actions be taken : 1. An investigation into Navy Federal Credit Unions refusal to accept my lawful payment instrument.

2. Immediate removal of all restrictions and blocks placed on my accounts, allowing me to perform regular banking activities.

3. Restoration of access to all my accounts and funds without further delay. 
4. An explanation and resolution of the unlawful actions taken by Navy Federal Credit Union in restricting my access and refusing payment. 
I am willing to provide any additional documentation or information required to support this claim. I trust that the CFPB will take this matter seriously and take appropriate action to address the grievances outlined in this affidavit of truth. 

Thank you for your time and consideration. I look forward to a prompt resolution to this issue. 

Sincerely, XXXX XXXX

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