Consumer complaint received 2026-04-14 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: NAVY FEDERAL CREDIT UNION
State: DE

Complaint narrative:
On XX/XX/XXXX, a complete payment package was prepared and transmitted for a More Rewards XXXX XXXX XXXX XXXX account via XXXX Registered Mail, Tracking No. XXXX. The package consisted of a negotiable instrument/money order in the amount of {$30000.00} bearing a restrictive endorsement directing full credit of the account, and a cover letter containing explicit, conspicuous handling instructions binding upon Navy Federal 's receipt. XXXX records confirm delivery to Navy Federal 's XXXX, VA XXXX facility on XX/XX/XXXX at XXXX XXXX hours before the contractual XXXX XXXX same-day credit deadline established in Navy Federal 's own credit card agreement. As of XX/XX/XXXX 59 days after confirmed delivery Navy Federal has not credited the account, not returned the instrument, and has not provided any written refusal. Navy Federal 's own system confirms the current balance at {$30000.00}, meaning fees and interest have continued to accrue for 59 days on an account against which a full-satisfaction instrument was delivered and retained. VIOLATION 1 REGULATION Z / 12 CFR 1026.10 : Federal law mandates a creditor " shall credit a payment to the consumer 's account as of the date of receipt. '' 12 CFR 1026.10 ( a ). Navy Federal 's own credit card agreement independently requires same-day crediting of payments received before 5:00 PM. Neither obligation has been performed in 59 days. Under 1026.10 ( c ), Navy Federal is additionally obligated to reverse all finance charges and fees resulting from its failure to timely credit. None have been reversed. VIOLATION 2 FCRA 15 U.S.C. 1681s-2 WILLFUL INACCURATE FURNISHING : Navy Federal is reporting a balance of {$30000.00} while retaining a {$30000.00} instrument without credit, return, or refusal. This is inaccurate furnishing under 1681s-2 ( a ) ( 1 ) as interpreted in XXXX v. XXXX & XXXX, XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) information " patently incorrect or misleading in such a way as to adversely affect credit decisions. '' Six separate formal dispute communications were submitted between XX/XX/XXXX and XX/XX/XXXX, including a nine-page notarized Notice of Breach delivered via Certified Mail ( Tracking No. XXXX, delivered XX/XX/XXXX at XXXX XXXX ). Navy Federal has not flagged the account as disputed. On XX/XX/XXXX, XXXXavy Federal responded to the nine-page notarized Breach Notice with a two-sentence boilerplate eMessage that addressed XXXX of XXXX documented violations and explicitly stated it would continue adverse credit reporting after formal notice of inaccuracy. This satisfies the willfulness standard under XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ), and is factually indistinguishable from the pattern the XXXX XXXX held warranted {$80000.00} in punitive damages in XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ). VIOLATION 3 SECURITY INTEREST MISADMINISTRATION : Navy Federal 's own credit card disclosure states : " If your credit card loan becomes delinquent, this security interest may be used without further notice to pay all or part of such delinquency. '' Navy Federal has treated the account as delinquent since XX/XX/XXXX. Yet Navy Federal 's own banking portal, captured XX/XX/XXXX at XXXX XXXX, confirms it allowed a pledged individual share account ( Easy Checking ending in XXXX ) to reach a negative balance of - {$520.00} and assessed a {$20.00} Overdraft Protection Fee on XX/XX/XXXX the same day it received the formal Breach Notice rather than applying its contractual security interest to cure the alleged delinquency. Navy Federal simultaneously exploited the delinquency to impose adverse consequences while suppressing the contractual remedy it reserved to cure it. This warrants CFPB supervisory examination of Navy Federal 's security interest administration policies institution-wide. VIOLATION 4 UDAAP / 12 U.S.C. 5531 : Navy Federal received formal dispute communications across six documented contacts between XX/XX/XXXX and XX/XX/XXXX including a Member Services call ( XX/XX/XXXX, XXXX min XXXX sec ), four written eMessages, a written institutional commitment to respond by mail ( XX/XX/XXXX unperformed for 55 days ), and a nine-page notarized certified-mail Breach Notice. Its only response was a two-sentence boilerplate template addressing XXXX documented violations. This institutional pattern of deliberate non-response constitutes an unfair, deceptive, or abusive act or practice causing ongoing adverse credit reporting, continued fee accrual, and suppression of the member 's meaningful access to redress. Supporting documentation attached : Exhibit A Navy Federal eMessage Response, XX/XX/XXXX two-sentence boilerplate non-response Exhibit B Notice of Breach and Opportunity to Cure, XX/XX/XXXX, XXXX pages, notarized Exhibit C XXXX Tracking XXXX, delivery XX/XX/XXXX, XXXX XXXX Exhibit D Navy Federal eMessage History, XXXX XXXX XXXX, including written commitment to respond by mail Exhibit E Navy Federal Credit Card Agreement payment instruction clause and security interest clause Exhibit F Member Services Call Record, XX/XX/XXXX, XXXX XXXX, XXXX minutes XXXX seconds Exhibit G Cover Letter and Remittance Letter XXXX XX/XX/XXXX, with restrictive endorsement and handling directives Exhibit H XXXX Tracking XXXX, delivery XX/XX/XXXX, XXXX XXXX Exhibit I Easy Checking Account XXXX Screenshot, XX/XX/XXXX, XXXX XXXX, confirming negative balance and overdraft fee Exhibit J Navy Federal eMessage Confirmation No. XXXX, XX/XX/XXXX, XXXX XXXX I certify that the foregoing is true and correct to the best of my knowledge and belief, and that all exhibits attached are true and accurate copies of the originals. without recourse UCC 1-308. All rights reserved.

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