Consumer complaint received 2026-04-07 00:00:00
Product: Checking or savings account — Savings account
Issue: Managing an account — Deposits and withdrawals
Company: NAVY FEDERAL CREDIT UNION
State: NY

Complaint narrative:
On XX/XX/year>, XXXX XXXX deposits were issued in my name in the amounts of {$10000.00} and {$3900.00} from XXXX XXXX XXXX XXXX XXXX via payroll processing. These deposits were directed to a closed checking account ending in XXXX. Under standard ACH processing procedures, deposits sent to a closed account should be rejected and returned to the originating institution. Instead of returning the deposits, the bank accepted the funds and internally rerouted them to a separate savings account in my name. On XX/XX/year>, {$13000.00} was removed from that savings account in a transaction labeled Savings Adjustment Debit. On XX/XX/year>, additional debits of {$350.00} and {$22.00} were taken. The funds were directed to a closed checking account ending in XXXX, internally rerouted by the bank to a separate savings account in my name, and then removed from that savings account and applied to a credit card account ending in XXXX. These actions involved XXXX distinct accounts and XXXX separate internal transfers performed by the bank without my authorization : ( XXXX ) rerouting from a closed checking account to a savings account, and ( XXXX ) removal of funds from the savings account for application to a credit card account. I did not authorize any rerouting, transfer, or application of these funds. The funds were removed within XXXX day of deposit, before I had any meaningful opportunity to access or control them. I have been informed that the funds were applied to a credit card account ending in XXXX. The last available statement for that account is dated XX/XX/year> and reflects a balance of {$14000.00}, with a minimum payment due of {$2000.00} and a past due amount of {$1900.00}. No subsequent statements were issued prior to the XX/XX/year> transactions. As a result, I had no updated information regarding the balance, payoff amount, or any additional interest or fees at the time the funds were removed. Despite this, funds were removed and applied in multiple transactions totaling approximately {$14000.00}, without any itemization or explanation showing how the amount was calculated or applied. No documentation has been provided showing allocation between principal, interest, or fees, or whether the account was satisfied or still carries a balance. The total amount removed does not clearly correspond to any verified or documented balance associated with the credit card account, and no accounting has been provided to support the amount taken. These funds originated from a legal settlement that required payment by check to my legal counsel. I did not authorize payment by direct deposit and did not provide any banking information for that purpose in connection with the settlement. It appears that outdated payroll banking information from a prior employment relationship was used without my authorization. As a result, the funds were misrouted to a closed account, internally transferred by the bank, and ultimately removed without my knowledge or consent. At no point did I consent to the use of prior payroll information in place of the payment method specified in the settlement agreement. I contacted the company and requested a transaction trace, an explanation of the rerouting, and the legal basis for applying the funds, but this information has not been provided.

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