Consumer complaint received 2025-11-26 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Loan balance remaining after the vehicle is repossessed and sold
Company: NAVY FEDERAL CREDIT UNION
State: IL

Complaint narrative:
1. Summary of Complaint I am filing this complaint against Navy Federal Credit Union for deceptive and unlawful banking practices involving loan funding, promissory note securitization, unauthorized credit reporting, book-entry fraud, and unlawful repossession of property. These actions constitute violations of federal consumer protection statutes and Illinois state law. 

-- - 2. Specific Allegations Deception in Loan Funding Navy Federal misrepresented the nature of loan funding by failing to disclose that my promissory note was securitized and treated as an asset for resale, rather than funded directly by the institution. This omission deprived me of material information necessary to make an informed financial decision.

Failure to Disclose Securitization of Promissory Note The institution did not provide disclosures regarding the securitization of my promissory note, violating transparency obligations under the Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq., and Illinois Consumer Fraud and Deceptive Business Practices Act ( 815 ILCS 505/2 ).

Unauthorized Credit Reporting Navy Federal reported derogatory information to credit bureaus without proper authorization or verification, in violation of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2, and Illinois Collection Agency Act ( 225 ILCS 425 ).

Book-Entry Fraud The institution engaged in deceptive accounting practices by recording book entries that misrepresented the true nature of the debt obligation, constituting fraud under Illinois common law and deceptive practices under 815 ILCS 505/2.

Unlawful Repossession of Property Navy Federal repossessed property without proper notice or compliance with due process requirements, violating the Uniform Commercial Code ( 810 ILCS 5/9-609 ), which governs secured transactions, and protections under the Illinois Consumer Fraud Act.

-- - 3. Supporting Legal Framework Federal Law Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq.

Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq.

Dodd-Frank Wall Street Reform and Consumer Protection Act, 12 U.S.C. 5531 ( prohibiting unfair, deceptive, or abusive acts or practices ).

Illinois State Law Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2.

Illinois Collection Agency Act, 225 ILCS 425.

Uniform Commercial Code ( Secured Transactions ), 810 ILCS 5/9-609.

Illinois common law fraud principles. 



-- - 4. Harm Suffered Damage to my credit profile due to unauthorized reporting.

Financial injury from deceptive loan funding and securitization practices. 
Loss of property through unlawful repossession. 
Emotional distress and loss of trust in financial institutions. 


-- - 5. Relief Requested Immediate investigation by the CFPB into Navy Federals deceptive practices.

Correction of unauthorized credit reporting entries. 
Restitution for financial and property losses. 
Enforcement of compliance with federal and Illinois consumer protection laws. 
Injunctive relief to prevent further unlawful practices.

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