Consumer complaint received 2025-07-11 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
Summary of Complaint : I am filing this formal complaint against Navy Federal Credit Union ( NFCU ) due to what I believe to be retaliatory conduct, deceptive internal communication, and bad-faith handling of my account following the submission of a legal dividend waiver form. 

Background : I hold both a business account under my XXXX and a personal account with Navy Federal.

My personal account had a charged-off balance of approximately {$200.00}. 
I submitted a dividend waiver form, exercising my right to control how dividends and associated obligations were handled. Immediately after this submission, Navy Federal began threatening closure of my business account which had no debt, no fraud, and was in regular use. 
I was told my business account would close if my personal account was not brought into good standing by XX/XX/XXXX. 
Good Faith Effort to Resolve the Issue : On XX/XX/year>, I called Navy Federal before the close of business ( around XXXX XXXX XXXX XXXX XXXX ), ready and willing to pay off the {$200.00} charge-off in full. 
I was instructed by a supervisor named XXXX to speak to XXXX XXXX but that department was already closed. 
On XX/XX/XXXX, I called again first thing in the morning, spoke to a supervisor named XXXX, who confirmed that XXXX XXXX was not the department that handles charge-off payments and that I was misdirected the day before. 
By that time, the business account had already been closed and the funds mailed out.

Evidence of Bad Faith and Retaliation : At no point was I refusing to pay. I was misled into missing the only window they claimed I had.

Navy Federal staff gave me incorrect information, refused to correct their error, and then terminated my business account which had nothing to do with the personal debt. 
The timing of the business account closure directly following my dividend waiver filing suggests retaliation. 
When I attempted to appeal, I was denied access to the account portal and told they " consider the matter closed. '' Violations/ Harm : I lost access to my business account despite being financially prepared to resolve the matter. 
I was prevented from maintaining good standing due to staff misguidance, not unwillingness. 
XXXX XXXX is now blocked from banking with NFCU not only for this business, but for any business account in the future even though the business itself had no fault. 
This violates principles of fair dealing, member rights, and potentially credit union regulatory expectations regarding good faith dispute resolution and internal escalation. 
At no point was my business account flagged or restricted, and I used it without incident for an extended period. 
It was only after I submitted a dividend waiver form a lawful and administrative action that Navy Federal abruptly identified my business account as high-risk due to an unrelated personal charge-off.

No prior communications or warnings were issued regarding this alleged policy linkage before the submission of that form.

The timing and lack of prior enforcement strongly suggest retaliatory conduct or selective application of policy.

Navy Federal had no issue with my business account for months the first mention of Good Standing Policy came only after I submitted a dividend waiver with legal reservations. That raises serious concerns that this closure was not about risk, but retaliation for asserting a legal right. 
XXXX said my account could be flagged high risk. 
Requested Resolution : An investigation into the conduct of Navy Federals staff, policies, and closure process.

Reinstatement of my business membership under the original terms ( if I am allowed to settle the {$200.00} charge-off immediately ).

A written apology or corrective statement acknowledging miscommunication on the part of NFCU.

Assurance that my submission of a dividend waiver form did not trigger retaliation or violate my rights.

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