Consumer complaint received 2023-12-31 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: NAVY FEDERAL CREDIT UNION
State: FL

Complaint narrative:
I applied to have an extension of my consumer line of credit through Navy Federal Credit Union, App. ID XXXX and was denied. Regardless of the reason Navy Federal denied my application I have the right to access my unlimited credit applied for through Navy Federal as a security transfer agent. The Federal Reserve Act section 16 part 2 says the my application was transferred and that the bank Navy Federal received notes in the amount of the credited I applied for. 2. Application for notes by Federal Reserve banks Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under section 10A, 10B, 13, or 13A of this Act, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of section 14 of this Act, or bankers ' acceptances purchased under the provisions of said section 14, or gold certificates, or Special Drawing Right certificates, or any obligations which are direct obligations of, or are fully guaranteed as to principal and interest by, the United States or any agency thereof, or assets that Federal Reserve banks may purchase or hold under section 14 of this Act or any other asset of a Federal reserve bank. In no event shall such collateral security be less than the amount of Federal Reserve notes applied for. The Federal Reserve agent shall each day notify the Board of Governors of the Federal Reserve System of all issues and withdrawals of Federal Reserve notes to and by the Federal Reserve bank to which he is accredited. The said Board of Governors of the Federal Reserve System may at any time call upon a Federal Reserve bank for additional security to protect the Federal Reserve notes issued to it. Collateral shall not be required for Federal Reserve notes which are held in the vaults of, or are otherwise held by or on behalf of, Federal Reserve banks. Withholding my access to my securities is security fraud, I asked for the return of the application and was told by Navy Federal that they could not return declined application. The reason they couldn't return the application is because they had already gotten the notes from 'MY ' application from the Federal Reserve Agent . Not on did they violate the Federal Reserve Act, they also violated my rights under the Equal Credit Opportunity Act and Consumer Credit Protection Act. Since Navy Federal denied me access to my credit I want the original application retracted and the notes Navy Federal received from the Federal Reserve applied to the principal primary account # XXXX or have my line of credit extended to my consumer. This is the second and last time I'm going to try to rectify this situation before I notify the Comptroller of the Currency of this fraud. Navy Federal said the reason for the denial was 'No Collateral ' when clearly the Federal Reserve Act states the application was the collateral.

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