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Unethical Lending Practices Compounded by Incredible Incompetence

Posted Mon December 27, 2010 4:30 pm, by james b. written to Navy Federal Credit Union

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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 on consumer websites.

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 relatively 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 very same 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. They lose profit by doing this. 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 $675 in fees. I am still trying to get them to send me the home appraisal I'd paid for.

NFCU isn't the military and veterans-friendly bank it used to be. 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 and unethical practices to the National Credit Union Administration, FTC, 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 unethically and in bad faith, a form of fraud. I followed this same route with another bank several years ago and got results.

I urge all NFCU members to follow suit. Make your voices heard. Also lodge your complaints in writing. A good place to start is:


NFCU needs to clean their management house in reaction to the investigations they are facing and growing customer dissatisfaction.


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by Tihisha H. Posted Sun July 17, 2011 @ 11:48 AM

WOW!!!!! I just recentlt encounterd the same problem with NFCU....I
have financed 2 vehicles and never been late. approved for a $14000
credit card and signature loan. I was given the run around when I
tried to trade in my vehicle financed through for another vehicle
which would have been a $3500 differene since NFCU pays themselves off
first. They kept requesting different documents mond you I had just
gotten a loan 3 months prior. ALL my employment info. and salary was
the same. My credit score had even went up. I was declined by the loan
officer after faxing in several differnt documents from my paystubs,
letter from employer, tax retirns, and W2. I was out of state and made
it known to them and the kept harrassing my for more documents. Then
after repeated phone calls and speaking with god knows how many people
they declined my loan. I don't get this bank. They are not even loyal
to there members who show credit worthiness!!! I am closing out my
accounts with them!

by Corey A. Posted Tue March 29, 2011 @ 2:17 PM

Hello, Im also going through a similar situation with "those guys", I
myself a 10 year member with a flawless record as to my loyalty and
business with them. Im currently in the process of closing the rest of
my account out while searching for a better banking institution.I was
wondering how did everything turn out with your situtaion with them?
or did you just leave them completely alone?


by RedheadwGlasses Posted Mon December 27, 2010 @ 6:30 PM

EXCELLENT letter. Bravo.

I have zero faith in these agencies to make your lending institution
do a darned thing. They sure weren't looking out for us 5-10 yeras
ago, they sure aren't now.

And I can't BELIEVE they are keeping that $600+ fee and the appraisal!


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