@Anonymous wrote:
GuyatTheBeach I am glad you posted this .. because I wondered if there was a statute or something about the account holder's rights. Very interesting... I am curious not that this has happened.. but what if this happened to any of us. What are our rights as the consumer.
I of course pray and hope for a good outcome for the OP.
But also knowledge is key here for any and all of us.
Thanks for responding to the OP.
Palmdale & BellaLina,
Palmdale pointed out a few things that got my attention because I read something similar happened to an active duty Marine on deployment a few years ago.
Navy Federal can close anyone's accounts at any time for any reason. NFCU has this printed on their statements. They can also request supporting documents to verify indentity and income at any time they want. NFCU has listed on several disclosure we sign when we start our membership and when we apply for credit, loans, or any new products. Navy Federal only has to notify us by mail, so it's possible to find out your account is closed whe you swipe your card befire getting written notice. There is no doubt about this, I have no questions, and I'm fine with this practice, because it's clearly documented in the fine print.
My concerns come from Palmdale having a VISA card with a balance on it. If Navy Federal wants to close his credit card account, that's CU's right to do, but they need to send it to him in writing with the reasons why his account was closed. As a consumer, Palmdale has the right to why his account was closed as it will directly impact his credit history. From what I have read, NFCU has not sent Palmdale written communication on why the account was closed. The CU didn't even tell him over the phone why they took the course of action they did. This is first possible violation.
The second potential violation is NFCU not accepting his payment on his credit card. According to Palmdale, he was not able to make a payment on his Visa online or in the local branch, NFCU didn't accept the payment. There are consumer laws in place stating that the CU must make reasonable accomdations for accepting payments. He did his due dilegence to make a payment. In the NFCU disclosure, it states these methods are standard accepted payment metods in its disclosures. NFCU chose not to accept his payment, because the branch teller could not access his credit card. This could cause Palmdale to have a late payment, miss a payment all together, accrue interest and fees, and negatively affect his credit.
I don't mean to make a mountain out of a mole hill, but the potential is there for a Pandora's box of problems, which I don't want Palmdale to have to deal with. I am going to research this.
Guyatthebeach
