Navy Federal Credit Union (commonly referred to as NFCU or Navy Federal) is a Virginia-based credit union with over $180 billion in assets. As a historical institution with millions of members, NFCU is trusted by military members and their families for their financial needs. However, customers allege a number of consumer rights violations, including unauthorized charges, unlawful debt collection, harassment, and more. If you believe Navy Federal has violated your consumer rights, contact Maginnis Howard today to find out how we can help.
About Navy Federal
As of 2025, Navy Federal is the largest member credit union in the United States, building its influence since its establishment in 1933. Its members are armed forces personnel, their families, and other Department of Defense employees. Navy Federal offers various financial services, including savings and checking accounts, loans, mortgages, and investment options.
Complaints
Despite Navy Federal’s extensive history and supposed commitment to providing servicemembers with excellence, the company has received thousands of online complaints in the last 10 years. The following are a few of the most common categories of complaint, though there are further allegations on the CFPB website.
Unauthorized Transactions
Recent lawsuits against Navy Federal Credit Union have been increasingly focused on fraudulent and unauthorized transactions. Under the Electronic Fund Transfer Act, financial institutions must investigate a customer’s claim and follow error-resolution procedures to limit a consumer’s liability for unauthorized activity. In 2025, NFCU settled a $1.1 million suit for failing to investigate fraud claims and refusing customer reimbursement. Additionally, the credit union has faced online scrutiny for denying fraud claims even if they were filed promptly.
Unwanted Phone Calls and Texts
Navy Federal has faced several lawsuits regarding unwanted phone calls and texts, in violation of the federal Telephone Consumer Protection Act (TCPA). One customer alleged he received automatically dialed phone calls asking for someone else. Even after asking NFCU to stop, the man continued to get calls from the wrong number. The credit union must also have prior express written consent to text and call consumers for select purposes.
NSF Fees
In November 2024, the Consumer Financial Protection Bureau (CFPB) ordered Navy Federal to pay $95 million in fees for illegal fee collection. The order states that the credit union charged customers overdraft fees even when their accounts had sufficient funds during the transaction. Navy Federal would have paid $80 million in restitution to its affected members and another $15 million to the CFPB’s relief fund. However, the acting head of the CFPB, newly installed by the Trump administration, dismissed the order in July 2025.
Unlawful Debt Collection
A 2016 CFPB order found that Navy Federal deceived its consumers and used unlawful debt collection tactics to get payments on delinquent accounts. It found the following violations of debt collection laws:
- False threats of legal action and wage garnishments.
- False threats of contacting a member’s commanding officer if they did not make payments. This particularly threatens military members, who may suffer professional consequences.
- Misrepresentation of consequences. NFCU sent almost 70,000 letters informing customers it would be “difficult, if not impossible,” to obtain additional credit because of their delinquency status. However, the credit union did not assess the individual consumer files before sending these letters. This displays that the letters were merely a threat and not an accurate portrayal of a consumer’s status.
- Illegal freezing of Funds. Navy Federal froze 700,000 accounts after customers fell behind on credit products. This took away the members’ debit, ATM, and online banking access.
This conduct is prohibited by the Fair Debt Collection Practices Act (FDCPA), which protects consumers from abusive and harassing debt collection behaviors. As a consequence, Navy Federal was ordered to pay victims $23 million and correct its debt collection practices. This includes maintaining consumer access to accounts even when delinquent on credit products.
What You Can Do
Navy Federal should be held accountable for its violations. The consumer protection experts of Maginnis Howard can help you understand your rights and guide you through what you can do and what compensation is available. We offer free consultations to consumers across the Carolinas from our Raleigh, Charlotte, and Fayetteville offices. Contact our contact page for more information or call (919) 526-0450.
Navy Federal FAQ
Yes, Navy Federal Credit Union is a legitimate financial institution available to Department of Defense employees and their families.
