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Law Office of Kelly Stairs

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Navy Federal Credit Union Complaints

At the Law Office of Kelly Stairs we represent consumer debtors, and one of the financial institutions we hear the most complaints about is Navy Federal Credit Union.   Most people didn’t realize how bad Navy Federal is, until they signed up with them, so it’s important to do your research before choosing a bank.

Here are some links to educate you about Navy Federal Credit Union.

http://www.consumeraffairs.com/finance/navy_federal.html

http://www.pissedconsumer.com/reviews-by-company/navy-federal-credit-union.html

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Navy Federal Credit Union Settles Driscoll Class Action Lawsuit

Recently I wrote about the class action lawsuit against Navy Federal Credit Union entitled Driscoll v. Navy Federal Credit Union.  It’s a class action before the Maryland District Court, case number 1:13-cv-00137-BPG.   And when it was announced that a settlement was being proposed, whereby Navy Federal Credit Union would pay $650,000 to settle the case, I posted an article titled Navy Federal Credit Union wants to settle Class Action Lawsuit.

The subject of these articles is highly relevant to the practice of bankruptcy, debt collection defense, and consumer protection.  Many of our clients complain of injustices, unfairness, contract breaches, and unlawful practices against them by their banks and credit unions.  This Driscoll lawsuit is only one example of such activity, and a rare occurrence where a financial institution is held accountable.  Although, if you read on regarding the terms of the settlement, you may dispute whether Navy Federal was actually held liable, punished, or made to compensate consumers for what they did.

At least one class member says no, and has filed an appeal.

The settlement was approved by order of the District Court, judgment entered, and case dismissed on October 29, 2013.   Less than a week later the class member filed an appeal.

It’s also important to note that said class member previously objected to the proposed settlement, before it was approved.  The objecting member called the settlement “..not fair, reasonable and adequate.”  And in regards to the settlement only providing free credit reports to class members, he argued that the “…class receives no benefit under the proposed settlement.  All class members can get the exact same benefit for free by going to freecreditreport.com.”

Additional arguments against the settlement were made in regards to attorney fees and some other details of the settlement.  The Court disagreed with the arguments made by the objecting class member, and approved the settlement despite the objections.

Read through the member’s Objection to Class Settlement, and let me hear your thoughts in the comments below.  Members of the class only received a free credit report as compensation, something the objecting member correctly stated can be obtained for free elsewhere.  Do you think that’s adequate?

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Navy Federal Credit Union wants to settle Class Action Lawsuit

In an earlier post, I wrote about the class action lawsuit against Navy Federal Credit Union entitled Driscoll v. Navy Federal Credit Union; 1:13-cv-00137-BPG.  Now, it seems Navy Federal Credit Union wants to settle, and has reached a proposed settlement agreement with the other parties to pay $650,000.   And while Navy Federal proposes paying that large sum of money, they deny any wrongdoing.

Here is an actual notice of the proposed settlement that was mailed to class members.

Navy Federal Credit Union class action lawsuit Driscoll v. Navy Federal Credit Union

Please note that this is for informational purposes only.  This law office does not represent any party to this litigation.

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Credit Card Reform – Three Years Later

A little over three years after the United States Congress passed the Credit Card Accountability Responsibility and Disclosure Act (CARD), the Consumer Financial Protection Bureau has released a report detailing the impact the Act has had. The overarching conclusion reached is that the Act has been a success, and saved consumers billions of dollars that they would have otherwise paid in a variety of fees and penalties.

However, it was known even before the law was passed that the banks wouldn’t easily give up those profits, they would simply raise fees elsewhere, invent new fees and penalties, and generally increase the cost of borrowing and owning an account. Many examples of this were seen prior to enactment, and banks began changing the terms of cardholder agreements to include new fees, new penalties, monthly fees, yearly fees, transaction fees, variable interest rates, drastically increasing interest rates, and a variety of other gouging tactics.

For many borrowers, banks simply closed their accounts, leaving countless business and families that relied on the use of credit out in the cold, forced to close shop, file bankruptcy, or default on other obligations.

This new report highlights the same type of conduct persisting today, as banks have carefully examined the law, found loopholes and areas of non regulation, and introduced are variety of new fees and tactics to gouge consumers. The Consumer Financial Protection Bureau specifically identified six broad areas where banks are engaging in deplorable and deceptive conduct, and will likely be the subject of future scrutiny. One example of such fraudulent practices reached conclusion just last month, when the Consumer Financial Protection Bureau ordered Chase Bank USA and JPMorgan Chase Bank NA to refund approximately $309 Million to consumers for illegal credit card practices. Chase Bank and JPMorgan had been charging consumers for add on products, such as fraud monitoring, without actually providing the services. You can read more about that here: Chase Bank Ordered to Pay $309 Million for Illegal Practices

As a practicing bankruptcy, debt collection defense, and consumer protection attorney in San Diego, I still tell every client to always be very wary of banks. The CARD act solved a lot of big problems, and the Consumer Financial Protection Bureau does outstanding work, but they cannot solve or prevent every problem, it’s simply not possible. The banks are in business to make as much money off of you as possible, and they will never stop changing tactics. And has been seen repeatedly, if they can’t make money honestly and legally, they will resort to illegal and dishonest practices.  So make sure you know your rights, and if you must borrow from a bank, read everything very carefully. And when you think you’re being scammed or defrauded, report it or hire an attorney.

If you have a complaint about a bank you can submit it to the Consumer Financial Protection Bureau here: http://www.consumerfinance.gov/complaint/

You can also read the CARD act report here: http://www.consumerfinance.gov/reports/card-act-report/

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Chase Bank Ordered to Pay $309 Million for Illegal Practices

As a bankruptcy, debt collection defense, and consumer protection attorney in San Diego, I constantly hear complaints about banks.  Excessive fees and penalties, deceptive tactics, hidden terms, and many other creative ways banks find to gouge consumers.  Its been just over three years since Congress cracked down on the credit card industry and passed the CARD act, forbidding and restricting many of the banking industries most harmful practices.  You might think that sent a strong message to the industry, and they would stop the deceitful and illegal practices, but you’d be wrong.

The Consumer Financial Protection Bureau, in conjunction with the Office of the Comptroller of the Currency, found that Chase Bank and JP Morgan Chase has been engaging in “illegal credit card practices” and charged more than $300 Million in illegal fees to over 2.1 Million customers.  Specifically, they found that the banks had:

  1. Charged for services they did not provide, such as fraud monitoring and identity theft protection.
  2. Unfairly charged interest and fees.  They even assessed interest and late penalties on the charges for services they didn’t provide
  3. Failed to provide promised services consumers were paying for

This is a big story and making headlines because of the amount of money and consumers involved, but banks take advantage of consumers every day.  Make sure you know what you’re being charged and what services the bank should be providing you, or better yet, avoid the banks altogether.

You can read more about this story directly on the Consumer Financial Protection Bureau website: CFPB Orders Chase Bank to pay $309 Million for Illegal Credit Card Practices

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First National Bank in Ohio Tries Repossessing Wrong House; Disposes of Homeowners Belongings and Refuses to Compensate

In one of the most outrageous stories of bank conduct, WBNS – 10TV of Central Ohio is reporting how First National Bank wrongfully attempted to repossess a woman’s house, disposed of all her belongings, and refuses to compensate her.

Apparently, the bank was supposed to repossess the house across the street, but chose her house by mistake.  They gained entry to the home and emptied it of all it’s contents (i.e. all of the homeowners personal and treasured belongings.)   The only item she has gotten back was a basketball hoop, through no effort of the bank.

Now, because all her belongings are apparently gone beyond recovery, she simply wants to be compensated so she can replace what was taken from her.  The bank refuses.  The homeowner has presented the bank with an estimate of $18,000 to replace all her belongings, and the bank refused to pay.  It seems the bank doesn’t want to pay what it costs to replace the items, they only want to pay a non-retail price.  And while that’s the position of the bank president, he made no statement of how the homeowner can be expected to afford to replace her belongings if the bank doesn’t pay replacement value.

Typically, my articles concerning banks relate the common occurrence of consumers being victimized by unlawful bank practices.  Writing about a woman victimized by a bank that she had no relationship with, however, is a new one.

Currently, a police investigation that began into the matter is closed.  There appears to be no indications of any further investigation or criminal charges for trespassing or burglary.

Read the full story at the Ohio news channel website, WBNS-10TV.