Navy FCU Consumer Loan Complaint

Navy FCU Consumer Loan department,

Vehicle loan Taking out the loan or lease Taking out the loan or lease Florida

In late -, I applied for a membership in Navy Federal Credit Union because I am an - of the - -. I planned to obtain a promissory note to purchase a used vehicle. A few weeks after they approved me for membership over the phone and sent me a promissory note and security agreement, I was unable to log into their website to view my account. After speaking to several representatives, I learned that I needed to " verify my eligibility '' by submitting documents proving that I am in the military. When I asked them why I did not receive an email or phone call informing me of this issue, I received no explanation, but I was re-granted membership in the credit union. Then, after driving the car for an entire month, I learned from NFCU that because I purchased a salvage title vehicle ( it is a theft recovery with no history of collision ), a fact which I did not hide from them and which was freely available to them on the state 's - - search website, my loan would be converted to a " signature loan, '' and the interest rate would go from


converted to a signature loan. A representative pointed me to a sentence buried in the middle of a paragraph on the - page of the security agreement that I signed to justify this interest rate hike. It reads : " The owner ( s ) will maintain property insurance on the collateral covered by this Security Agreement against loss and damage with a collision deductible of no more than $500.00. '' He told me that this sentence justified NFCU retroactively hiking my interest rate because buying a car with a salvage title constituted breach of an agreement to maintain insurance on the collateral. I have insured this vehicle through -, and their representative informed me that I had collision insurance up to the vehicle 's value. I did not realize that a salvage title would severely reduce the vehicle 's value, but I also did not nor do I think that this sentence in the security agreement or any of the statements made to me before I purchased my vehicle justify the interest rate hike that NFCU is trying to impose on me. In my opinion, the fault does not lie with an unsophisticated consumer, but with an enormous banking institution that failed to do its job by giving easy credit without doing its due diligence.