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Is this legal?


bradjohnson22
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I tried to close all bank accounts with Navy Federal CU upon leaving the USMC. I had a loan through them at the time. They closed my checkin, but would not close my savings account, they left 1 dollar in it. That loan was written off a few years back; however, NCFU takes the interest off the $1 and applies it to the loan. Hence the written off acct keeps getting activity on it. How can I stop this? Now that Im older, I feel like I got tricked. I was a dumb 22 yr old when they told me that and I went with it.

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Yes its legal & permissible. In order to keep the loan with Navy Federal at the time you still had to be a member so they had to leave the account open (NCUA Rules). You are still a member of the credit union.

I'd try to work something out with them with respect to the charged off loan that is of course if you want the dollar back.

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Well, its not that I want the dollar back. The last account activity was in 2003, but with the way they have this set up, it gets re-aged every month. This should drop off in 3 yrs, should I say. I just sent dispute papers to them. I dont believe they have documentation(the loan contract or anything) or they would have went after a judgement a long time ago.

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Navy Federal will have the paperwork-- trust me. Several friends of mine work for NCUA.

At this point, I would test the waters with a goodwill letter (credit unions generally fall for this nicely). I don't know what you owe, but like I said there may be an opportunity to settle the account.

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