Consumer complaint received 2022-10-17 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: NAVY FEDERAL CREDIT UNION
State: FL

Complaint narrative:
My Name is XXXX XXXX XXXX XXXX and I live at XXXX XXXX XXXX XXXX XXXX FL. 

On XX/XX/2022 I was provided what I believed to be accurate wire instructions intended for use in the sending of closing costs for the purchase of my new home. I am aware closing costs are typically wired at closing, however with Hurrican Ian impacting my town on the day I recieved these instructions, I believed there to be an urgency in getting the money sent ahead of the storm. It should be noted, my scheduled closing date was Friday, XX/XX/2022. 

I initiated a wire transfer in the amount of {$15000.00} on Wednesday, XX/XX/2022 via XXXX Online Banking, around XXXX XXXX. I promptly lost power, data and cellular service as a result of the storm. 

On Friday, XX/XX/XXXX I was able to recieve an email from what I believed to be my closing agent asking where the funds were. I called my closing agent directly and was informed the instructions had not been sent by them. I promptly engaged XXXXXXXX XXXX and was advised that the team I needed ( Wire Investigations Team ) could only be contacted via the Secure Message Center ( SMC ) in XXXX Online Banking. Based on this information, I reached out to said team via the XXXX. 

On Saturday, XX/XX/XXXX, I recieved a response from the XXXX XXXX Investigations Team ( via the XXXX ) confirming the details of the wire and requesting my conscent to recall that wire. My conscent was provided. 

On Thursday, XX/XX/XXXX, I recieved a follow up message from the same team via the XXXX stating that the recieving bank ( Navy Federal Credit Union ) had flagged the transfer as suspicious and that the funds had not yet been released to the recipient account. Furthermore, the XXXX XXXX Investigations Representative advised that I could visit a local banking center and work with a Banking Center Manager to submit a Hold Harmless Letter ( HHL ) to Navy Federal Credit Union so that the funds could be returned. 

As this was recieved after business hours, I set out to visit a local branch on Friday XX/XX/XXXX. The Banking Center Manager was not familiar with the requested HHL and spent the next 3 hours on the phone with her internal support teams. Eventually she was able to reach a teammate that was familiar with the HHL. This teammate advised that the form was no longer used HHLs at XXXX and when it was in use, its intent was to cover bank employee errors and not intended for client use. 

In an attempt to assist, the XXXX Banking Center Manager reached out to Navy Federal Credit Union ( NFCU ) on an internal line. She explained the situation to a representative of NFCU - that the wire was submitted via fraudulent means, that she had issued a recall and that the funds should be returned to my account. The representative from NFCU advised they would be unable to return the funds without an HHL, to which the XXXX representative advised that her institution no longer supported/issued these forms. NFCU advised there was no plan b, and when asked what would happen to the funds, the NFCU representative advised they were not at liberty to disclose nor should I ( as the client ) have been made aware that the funds were not yet released. 

The XXXX Banking Center Manager apologized profusely for the situation and filed a formal complaint on my behalf. 

On XX/XX/2022 My legal counsel sent a letter to NFCU requesting the immediate return of the funds. 

To date NFCU has not replied to the letter from my attorney. 

In the interim I attempted to engage XXXX 's Wire Investigations Team via the Secure Message Center. My initial note was responded to within XXXX hours. I have engage them now 3 times requesting an update and have each time recieved automated responses advising me that a response would be recieved within XXXX business days. 

My complaint is two-fold. 

Complaint One : The fact that XXXX Bank 's Wire Investigations Team is only availible via Secure Message Center is unacceptable. When it comes to fraudulent wire transfers, or any fradulent activity for that matter, all actions to investigate and potentially recall funds is time sensitive. Clients should not have to submit a message, recieve an auto response and wait XXXX hours ( or XXXX business days ) to be contacted by a representative. Submitting a claim against fraudulent activity is my right as a client, and XXXX limiting my ability to file a claim in a timely manner is unacceptable. 

Complaint 2 : Navy Federal Credit Union has now been advised by myself, my banking institution and my attorney that the transfer was sent by fraudulent means and should be returned to my account. NFCU themselves flagged the transaction as suspicious. The fact that the funds have not been returned to my account is not acceptable

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