Navy Federal Credit Union / bad faith, incompetence & fraud

Merrifield, VA, United States Review updated:

I have been a member of the nfcu for 16 years. When I applied for a mortgage for my new home in 2002, and when I refinanced in 2003, they were efficient, customer-friendly and offered the best rates and terms. It was a pleasure working with them. When I applied for another refinance in june 2010, my experience was exactly the opposite, thus, echoing other complaints here.
I have an unblemished record as a mortgage, banking and credit card customer with nfcu as well as with other banks I do business with. My credit scores hover around 820-830. I have zero consumer debt. I have a high verifiable net worth as an investor/businessman. My equity in my house is two-thirds. Banks love to do business with me. Nfcu, however, is a different story.
I first became concerned over my loan application when nfcu's loan officer kept losing the reams of documentation I sent in both electronically and by mail - - not once, not twice, but three, four and five times. Moreover, it took her on average two weeks to reply to anything I sent in. I became so exasperated that I lodged a formal complaint to nfcu's special committee which is supposed to act as ombudsman for nfcu customers. I suspected something was amiss with this committee when I couldn't find any contact info on it. Hours of cybersleuthing got me the email address of a navy dept. Official who is on the board, whom I contacted. After a month, I received a canned response from the board obviously written by the same incompetent loan officer i'd been dealing with, instructing me to send in the documents she'd been losing. Exercise in total frustration.
Nonetheless, I continued to assiduously fulfill each request for information. But every time I submitted information, back came additional demands which over time became increasingly absurd. As I reached the sixth month of this charade, it became very clear to me that nfcu had no intention of approving my application to refinance at a full percentage point lower rate. The game they were playing was clear: henpeck the client to the point he gives up. My requests to speak to a supervisor were ignored. I finally issued them an ultimatum: they had more than adequate data proving my creditworthiness. Make a decision, I told them. Well, I received no response for two weeks. I had to goose them repeatedly for a reply. They sent me a form rejecting my loan application, checking every box available for the rejection. My impression was that they had great glee in throwing the book at me. And I am out of pocket for $850 in fees.

Nfcu isn't the veterans-friendly bank it used to be. Something has changed. They now comport themselves like some fly-by-night scammer. I plan on removing my $200, 000 in accounts from nfcu and to cease doing business with them. Moreover, i'm writing their management to inform them that I am reporting their bad faith practices to the national credit union administration, ftc, fdic, federal reserve, bbb and the new consumer financial protection bureau. Moreover, I am writing to the respective oversight committees of congress requesting that they investigate the lending practices of nfcu and other banks who are committed to lending, but who act in bad faith, a form of fraud. I followed this same route with another bank several years ago and got results.

I urge other nfcu members to follow suit. Make your voices heard. Also lodge your complaints in writing. A good place to start is: http://www.Mortgagesfinancingandcredit.Org/mortgages/complaints-regulatory/ncua6. Htm.

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  • Gf
      Jul 22, 2011

    I'm having the exact same experience now; it's frankly ludicrous. Just as a random example: the appraisal was FINELY done after a month; NFCU kept blaming the AMC. Well, the appraiser told me who the AMC was and that they'd have the appraisal to the bank on a Monday. Friday, of that week, NFCU still didn't have it; and going on two weeks, and still claim they don't, while, in the meantime, they've raises the 'fees' on the loan, then lowered them because it bumped it past some legal percentage, so, instead, changed the actual percentage rate on the GFE. I know it's irrelevant up to the point it goes to underwriting, but it's been a nightmare, and I've not walked yet simply because of inertia.

    Oddly, I've never had any issue with NFCU before (been a member over 6 years), and I've got a credit card with them, as well as financed (a now payed off) car through them. So, for folks doing research before getting a mortgage/refi through NFCU and stumbling here, stay away. Stay far, far away. There's also no recourse; except, of course, taking your business elsewhere.

    0 Votes
  • To
      Jul 22, 2011

    Thank you for your eloquently told story, Angkor.

    It mirrors my sentiments and experience very closely, I shook my head this morning when I logged in and saw the message that I'm sure we all received about new nominees for the board of... what? Why? Are they NOT getting enough complaints!? Can they REALLY be this inept!? We vote, get new board members, elect presidents for what? All the credentials that they portray, why? They seem to know about everything except BANKING!!! In lost my trust on NFCU.

    I'm fighting my own battles right now, I will move my banking needs to a different credit union as soon as my current business with them comes to a conclusion in just a few weeks.

    Stellar credit records, timely payments, none of that matters anymore, there is something very very wrong with NFCU and they do not do anything about it, nothing else to see here, time to move on.

    0 Votes
  • An
      Feb 19, 2012

    I just finalized a refinance with another credit union (AmeriCU), which welcomed my business and has treated me with respect and professionalism. So, Navy Federal has lost $180, 000 of my business. I hope others follow suit. Nothing like a deteriorating bottom line to grab a CEO's attention.

    +1 Votes
  • Mc
      Aug 06, 2013

    I thought that my bad experience with NFCU was the exception until some of these reviews and found that I am not alone. After 40+ years membership with NFCU, an 800+ credit rating, no debts and a good income and yet I am getting the same run around aqnd bad service that Angkor experienced. I hope that Cutler Dawson, NFCU President/CEO reads some of these comments and understands that the NFCU is not meeting his expectations as a financial institution that its members can always rely on. Paul

    +1 Votes

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