Consumer complaint received 2024-03-30 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Opening an account — Didn't receive terms that were advertised
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
To Whom It May Concern : I am a XXXX woman, and I am writing to file a complaint regarding improper denial of medallion signature guarantee services from Navy Federal Credit Union ( NFCU ), a securities transfer agent ; Branch Address : XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, TX XXXX ). As a long-time account holder at NFCU, I should have had access to authentication services of my personal signature for Securities I need to execute as per the U.S. SEC Medallion Standards that banks ( security transfer agents ) in the program must follow. On XX/XX/, I visited the branch listed above and spoke to manager/vice-president representative ( XXXX XXXX XXXX XXXX XXXX ) seeking to have my signature guaranteed for endorsing a NOTE ( security ) for a securities transfer. As stated on the medallion requirements, the bank ( securities transfer agents ) simply needed to : 1 ) Validate my identity via a valid government-issued I.D . ( which I provided and to verify my account at NFCU ), and 2 ) Stamp my signature to certify its authenticity. However, XXXX refused service to me and said NFCU does not offer anything related to medallion signature guarantees or guarantees on NOTES ( securities ) and that NFCU issued a publication stating this 2-months ago. I indicated that as an account holder, I have no records of such publication, and when I requested a copy to inspect said publication, XXXX refused to supply me with a copy. XXXX actions on behalf of NFCU violates the SECs medallion signature guarantee program rules. XXXX refused to show me any supporting documentation or publication or policies or forms related to the types of NFCU medallion guarantee services they provide per my request which severely lacks transparency and, XXXX and XXXX  equity as a securities transfer agency. In fact, XXXX said the following to me yeah, we turn a lot of these requests away for a medallion signature guarantee because people come in with the wrong documents. We have not provided a medallion signature guarantee in like 6-months or longer. This denial of my basic request as a customer of NFCU left me penalized, costing me unnecessary hassle and financial constraints finding medallion signature guarantee services elsewhere that I should have had full eligibility for on XX/XX/ at NFCU. My case warrants regulatory investigation and penalties since service were improperly denied. As an eligible NFCU account holder and member, NFCU needs to justify why I can not avail medallion signature guarantees of my signature on legal negotiable instruments ( securities - NOTE ) under established medallion signature programs it governs. Comparable to a public notary, the notary doesn't authenticate the legal validity of the specimen per se, but it authenticates the signature of the person that is endorsing the contract as valid and true. The medallion signature guarantee is guaranteeing my signature is authentic as I endorse it on a Security. Per 31 CFR 363.43, I respectfully request the CFPB to compel NFCU to explain this denial, provide transparency on NFCU medallion signature guaranteed policies, demonstrate I was not unfairly deprived of this standard service as a XXXX woman, provide me the medallion signature guarantee I need, and deliver training to ensure equal and fair access of this service to rendered to all regardless of XXXX XXXX XXXX  moving forward. Please let me know if any additional details on this concerning violation would help launch remediation. Thank you for your assistance upholding crucial investor access protections. With gratitude, XXXX XXXX, NFCU Account Holder

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