The CFPB fined Navy Federal Credit Union $28.5 million alleging that they made “‘false threats’ about debt collection to its members.” The “shady debt collection activities” included “disable[ing] [access] for about 700,000 accounts” and that they “falsely threatened to contact commanding officers to pressure servicemembers to repay.” For these customers, consumer debt problems could have led to losing security clearances or other disciplinary action. “About 200,000 customers will split the $23 million, making the average payout about $115.”

• In October 2016, the CFPB ordered, “the Navy Federal Credit Union to pay $28.5 million to settle civil charges alleging that it made ‘false threats’ about debt collection to its members, which include active and retired service members.” [James Peltz, “Federal agency that investigated Wells Fargo scandal dealt blow by court”, Los Angeles Times, 10/11/16]

• The CFPB ordered Navy Federal Credit Union to pay the fines because of “shady debt collection activities.” [Joe Davidson, “Navy Federal Credit Union to pay $23 million for shady debt collection activities”, The Washington Post, 10/12/16]

• “About 200,000 customers will split the $23 million, making the average payout about $115.” [Joe Davidson, “Navy Federal Credit Union to pay $23 million for shady debt collection activities”, The Washington Post, 10/12/16]

• Navy Federal “disabled electronic access for about 700,000 accounts after customers fell behind on credit payments.” [Joe Davidson, “Navy Federal Credit Union to pay $23 million for shady debt collection activities”, The Washington Post, 10/12/16]

• The complaint also alleged that Navy Federal “falsely threatened to contact commanding officers to pressure servicemembers to repay: For members of the military, consumer credit problems can result in disciplinary proceedings or lead to revocation of a security clearance.” [WTKR Web Staff, “Navy Federal Credit Union to pay $23 million to misled customers”, CBS 3 WTKR, 10/12/16]

• Navy Federal did not admit wrongdoing in the agreement. [Joe Davidson, “Navy Federal Credit Union to pay $23 million for shady debt collection activities”, The Washington Post, 10/12/16]