Navy Federal Credit Union Harasses Military Customers
In January 2008, my colleague Jay S. Fleischman wrote an article about a bankruptcy judge in New York that fined Navy Federal Credit Union ("NFCU") over $13,000 for continuing to contact a debtor in violation of the U.S. Bankruptcy Code. I will soon have the opportunity to take legal action on behalf of a client who is currently on active duty in the Navy that has been similarly harassed by NFCU.
Under the California Rosenthal Fair Debt Collection Practices Act, creditors cannot legally contact consumer debtors that are represented by an attorney. Despite several phone calls from my office and written confirmation that we represented the debtor, the contact continued. NFCU is accused of (1) using profanity with my client; (2) threatening to call my client’s commanding officer about the debt; (3) threatening to garnish my client’s wages while he is on active duty and when a judgment did not exist; and (4) telling my client that he was a "disgrace" to the military.
Even after I filed the bankruptcy, NFCU continued to contact my client. So far, NFCU has sent my client 3 letters since we filed his bankruptcy petition. Each letter acknowledges notice of the bankruptcy filing and threatens to continue reporting negative information on my client's credit report, all in violation of the bankruptcy automatic stay. The continued contact with my client is also violates the California Rosenthal Act because my client has legal representation. I will be filing a motion for sanctions against NFCU in the very near future.
About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning, insurance subrogation and debt collection.
Under the California Rosenthal Fair Debt Collection Practices Act, creditors cannot legally contact consumer debtors that are represented by an attorney. Despite several phone calls from my office and written confirmation that we represented the debtor, the contact continued. NFCU is accused of (1) using profanity with my client; (2) threatening to call my client’s commanding officer about the debt; (3) threatening to garnish my client’s wages while he is on active duty and when a judgment did not exist; and (4) telling my client that he was a "disgrace" to the military.
Even after I filed the bankruptcy, NFCU continued to contact my client. So far, NFCU has sent my client 3 letters since we filed his bankruptcy petition. Each letter acknowledges notice of the bankruptcy filing and threatens to continue reporting negative information on my client's credit report, all in violation of the bankruptcy automatic stay. The continued contact with my client is also violates the California Rosenthal Act because my client has legal representation. I will be filing a motion for sanctions against NFCU in the very near future.
About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning, insurance subrogation and debt collection.
3 Comments:
Mr. Starrett. I read your blog and I just wanted to say kudos. I do not have a similar situation except that I am a Navy Federal Customer. I am separated from the Air Force but lost my civilian job 2 years ago. I wrote Navy Federal a hardship letter and they continue to call me even though I told them I went from a 38,000 a year job to a waitress job where I make $8.00 an hour. They told me I was one of millions of customers and and they just wanted their payment regardless of my situation. At any rate I'm glad I'm not the only one who does not agree with their customer service tactics. Thank you for the opportunity to read your blog.
Wow I work for NFCU and have also applied for bankruptcy most of my debt it with NFCU they have also send me letters of about my bankruptcy I don’t say anything cause I need to keep my job since they can not firer me base on me applying for bankruptcy
I am currently working on another blog entry about another client that was victimized by Navy Federal Credit Union. Stay tuned.
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