Navy Federal Credit UnionBackdated overdraft fees cause more overdraft fees

This review was posted by
a verified customer
Verified customer

Navy federal has gone from a "member-first" philosophy to a "cover-our-###" paradigm in the past few years.

My problems started when they changed their policy on their sharedraft visa card. It used to be that the account would be debited from the account when the transaction posted. Now they backdate it to the time the card was swiped. Why? To collect more fees, of course. Even if you swipe the card, put gas in the car, get home and transfer the $5 difference 5 minutes later... When that transaction posts you'll get the $25 fee. Wait, it gets better. That $25 fee will be backdated, so if you went to, say, starbucks, the supermarket, and drive-through and used your card... You'll get another $25 fee for each transaction when they shoehorn the backdated fee in. Even if your account never went below $0. Why? Well, that is how ceo cutler dawson makes his money. How much money does he make? You won't know as a member and part-owner of the credit union because they fear that kind of transparency. But i digress...

Know what is interesting? Many places don't let you use it as a debit card, only credit. It was explained to me that this was a choice made by the card issuer and not the merchants' systems. Now, why would they restrict that usage? Well, it's hard to rack up overdraft fees if folks are using their pin number and the money is coming directly out at that time. Do you think nfcu would deliberately set up a system that would make them more money?

I've read many of the complaints about navy fed on this board and have seen the responses from alleged employees of nfcu. Maybe they are the same people who revel in schadenfreude at the folks on here who lost their jobs and can't pay their bills. Maybe they were involved in the lawsuit nfcu lost when they continued to harass a former member:


Maybe they are the ones who look at my account on their computer screen and talk to each other in tagalog so i don't know what they are saying. Maybe it's the supervisor who, after only refunding half of their ill-gotten fees, offered to "take the money back out if i don't like it".

Maybe, just maybe they don't realize that the unprofessional behavior they exhibit here and the vitriol they spew is being presented to the world. This undoubtedly will make their corporate overlords unhappy, but they don't realize that they are only small cogs in a giant money-making racket that chews up the little guy. So i can't really blame them for what they don't know.

Final words of advise, take it or leave it: avoid navy federal. Find a small local credit union that will treat you well, kind of like how nfcu used to be.


  • Na
    Navymikey Jul 28, 2010

    I'm just had this exact thing happen to me. I had not used my card in 9 days and checked my account and some how received 6 overdraft fees OUT OF NOWHERE. Nothing was added to my account. The only thing that changed was the days that things cleared. That has got to be fraud or something. IM not giving up. They WILL remove those fees.

    -1 Votes
  • Co
    ComplaintDept1 Jul 02, 2010

    Maggie, lets pretend like Navy Fed didn't change their system with the soul intent on stripping money from their members as efficiently as possible (Lets also pretend that you're not a Navy Fed employee.)
    It is still unethical docking YOUR customers $29 (yes they have since upped their overdraft fee, surprise) for $2-$3 purchases that go over because of a single $50 purchase that gets backdated, but magically reappears at the front of the line again, sending all your previous smaller purchases into the negative. I'm beginning to wonder if there are strings being pulled behind the curtains that determines when these fees actually show up on your online statement?

    1 Votes
  • Re
    remmy May 18, 2010
    This comment was posted by
    a verified customer
    Verified customer

    I have this same problem. I also notice that transactions sometimes take over 5 business days without any warning. I was told that its the merchants end. Funny, I used to be a merchant and card transactions were INSTANT. This happened to m today. It seems I overdraft my account last night after business hours. I deposited money not an hour ago before close of business. They are still pending and havent come through. Im willing to bet they are going to ping me on this. I cannot wait until I get rid of this bank.

    2 Votes
  • Ja
    jazzy1 Aug 05, 2009

    I have had the same problems with Navy Federal Credit Union they have the worst customer service i have ever encountered. They turned my card off and the explanation was that it was a fraud alert. I was never notified of this and was told i had to order another card and the only offer they gave me in the mean time to get money was through a western union. I was out done to say the least because i had no warning ahead of time to prepare to get money. They stated that there was nothing that they could do. That i would half to wait for a new card. I am currently looking for a new credit Union to bank with. I am going to suggest to all my family members that i help get accounts with them to cancel their accounts and find a new institution to bank with.

    2 Votes
  • Ke
    Kelesis Jul 03, 2009

    You are correct that they use their check cards in such a manner. The best thing to do is get one of their "cucards" and use that to make purchases. It is used via PIN and is completely "online" so that the purchases are posted within a reasonable timeframe. Or you can leave them altogether as I did. I got tired of them trying to cross-sell something to me every single time I called.

    3 Votes
  • Ko
    kozaru Jun 30, 2009
    This comment was posted by
    a verified customer
    Verified customer


    It isn't that simple. I can concede, about 25% of the time, that a fee is warranted. When that fee, however, is backdated and causes 4 other transactions to "overdraft", that is just extortion.

    I haven;t had any problems with my new credit union doing this, so I tend to think it is NFCU tweaking the process to favor their coffers instead of their members.

    2 Votes

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