Consumer complaint received 2025-02-14 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
Dear Consumer Financial Protection Bureau ( CFPB ), I am writing to file an official complaint against Navy Federal Credit Union ( NFCU ) for placing unwarranted restrictions on my account despite clear evidence that fraudulent activity occurred without my knowledge or consent. I have been a loyal member of NFCU since XXXX, and I am deeply frustrated by the financial institutions handling of my case, which is in violation of various consumer protection laws, including but not limited to the Uniform Commercial Code ( UCC ), the Fair Credit Billing Act ( FCBA ), and the Truth in Lending Act ( TILA ). 

In late XXXX, while in the process of relocating from XXXX to XXXX, I discovered multiple unauthorized transactions on my Navy Federal account. I immediately reported the fraudulent transactions to NFCU in compliance with my obligations as a consumer and in accordance with banking regulations. NFCU launched an investigation, which found that I was not responsible for the fraud and confirmed that I would not be held liable for these unauthorized charges. 

Despite these findings, Navy Federal has placed an arbitrary and unreasonable restriction on my account, prohibiting me from using my debit card for two years. This action is in direct contradiction to the protections afforded by XXXX 's zero-liability policy for fraud, as well as consumer protections under U.S. law . Specifically, under the Truth in Lending Act ( TILA ) ( 15 U.S. Code 1601 et seq. ), consumers are entitled to protections against liability for unauthorized transactions, and institutions are required to resolve fraud complaints swiftly and equitably.

Further, under the Uniform Commercial Code ( UCC ), Section 4A-202, a financial institution is required to promptly investigate and resolve any unauthorized transfers, and the consumer can not be held liable for such transactions if they were not authorized. In this case, NFCU acknowledged the fraudulent activity yet imposed punitive restrictions, violating these UCC protections.

Moreover, the Fair Credit Billing Act ( FCBA ) ( 15 U.S. Code 1666 et seq. ) protects consumers from liability for unauthorized charges and mandates timely resolution of fraud cases. My case was clearly one of fraud, and the investigations confirmed that I was not at fault ; therefore, the imposition of a restriction on my account and my debit card is contrary to these protections. 

On XX/XX/XXXX, I contacted Navy Federal to request a resolution and clarification regarding the continued restriction on my debit card. The representative informed me that a new checking and savings account had been opened for me, but again reiterated that I would not be able to use my debit card until XX/XX/XXXX. I was instructed to fill out a security appeal form, which would allegedly be reviewed within 15 days. However, this process is neither timely nor sufficient, given the clear violation of my rights under consumer protection laws and the lack of justification for the imposed restrictions. 

It is completely unreasonable that a loyal customer like myself is being penalized for fraudulent activity that I did not authorize or cause. This restriction appears to be an arbitrary retaliation and violates several critical consumer rights protections under federal law, including the Truth in Lending Act, the Uniform Commercial Code, and the Fair Credit Billing Act. 

As a result, I respectfully request that the Consumer Financial Protection Bureau ( CFPB ) immediately investigate Navy Federal Credit Unions actions and intervene to ensure compliance with the applicable statutes and consumer protections. I am requesting that all restrictions be removed from my account and that I be allowed to use my debit card without any further delay or punitive measures.

I also request that NFCU be held accountable for its failure to uphold the laws designed to protect consumers from such unwarranted penalties, and that a fair resolution be provided to ensure that I am not unduly harmed by these actions. 

Thank you for your attention to this matter. I expect a prompt and thorough investigation into this claim and a resolution in line with federal law.

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