CD Maturity Over Weekend

Anon456 | Jun 19, 2018 | 249 posts since 2011

Just had an interesting situation at NAVY, but probably not unique to them.

Had a CD maturing on Sunday. I checked it on Saturday, and the CU already showed the auto renew dates, even though it was not yet matured. So I called. The CS rep was unable to make changes to direct the CD to my checking. I found that I could, online, by leaving instructions for maturity.

On MONDAY - no change. I called.

Two things of interest:

1) weekend Rep has lower powers over the accounts and could not make changes that regular reps can do

2) instructions left over a weekend do not get acted upon until the SECOND work day .... Even when left on the weekend, they must go through the overnight system MONDAY NIGHT, and then get acted upon for Tuesday.

SOOOoooo , did not matter if left over the weekend or on Monday .... they ALL must go through the first overnight processing which is Monday PM.

Just be a bit patient and cautious with weekend maturity issues.

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klink | Jun 19, 2018 | 202 posts since 2012

I've learned that also. I am in the process of moving all my CD's through Navy as they mature. I've had alot of problems with them during the instruction process actually losing money when they failed to act on instructions they acknowledged, had in place and yet the people in the back didn't react to. No real specials at present so my money will fly away.

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longondetails | Jun 19, 2018 | 4 posts since 2017

I also have had many issues with Navy with CDs that matured earlier this year (and also more coming due soon). I will probably have more to say when there is another blog post on Navy Federal but my issues were similar to yours. They had my instructions, did not act on them on the maturity date as requested, pointed me to some wording in their terms and conditions that allowed them a number of business days to follow those instructions and according to "me" they messed up, gave me no paperwork and good not even tell me the net proceeds of the maturing CDs until after some supervisor went back over my account, which would take several days' time. When they say they are sending some paper work, it takes at least a week to 10 days to get to you and even then you may not follow what they did. I told them I was disgusted with them, that their rates were now inferior to other financial institutions and because of the mess they made of my CD maturity instructions would most likely look to place my future deposits elsewhere. They would have to offer a very high rate to get me back. This is from a member of Navy Federal for more than 10 years, probably 15 or even more --- just can't remember when I joined.

3

me1004 | Jun 19, 2018 | 1,381 posts since 2010

I would recommend all of you file a formal complaint with the appropriate federal and/or state oversight agency.

When you give instructions IN ADVANCE, as is clear longondetails did and maybe klink did, they do not have days from the maturity date to act on those or they have broken the CD contract at a financial loss to you, as you could have had your money earning for you in another investment but instead they kept it and they earned on it. You have a legal right to the funds on the maturity date, that is the contract, they are available to YOU on that date, not the next day or more days later.

When they don't follow your instructions, they have broken the contract. And when you give instructions in advance, their time to deal with them starts counting then, not only after the maturity date arrives, as to say it starts after the CD matures is to lock you funds in longer than allowed by the contracted maturity date. What they are doing is illegal, not simply bad service.

Clearly Navy will continue to operate like this unless and until there are multiple complaints to the oversight agencies about them. (I'm not sure which agency would be the proper one for Navy Fed, but there is info on this site to direct you to the right one.) Please file those complaints, as a service to everyone of us. You can file them online.

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Anon456 | Jun 19, 2018 | 249 posts since 2011

thank you, me1004.

The only reason I am not more upset about this, is that they will "make it happen" when you call them, even if they have failed to follow electronic issues on a timely basis.

I happen to like NAVY, and will cut them some slack on this issue. I appreciate their many "specials" and therefor will try to work with them or around their limitations.

For other organizations who absolutely make me subject to backwards policies or fees, those folks are held to a different standard. Most of the time, however, it ends up being me voting with my feet and leaving them behind.

For Now, I look at this issue as a minor inconvenience with Navy compared to the many benefits they provide.

4

Sylvia | Jun 19, 2018 | 389 posts since 2012

Anon456, I'm confused: Did you leave instructions by email or through Account Services tab in online banking?

For those unfamiliar, you can change instructions yourself by going to the Certificate, IRA & ESA section of Account Services, under Maturity Instructions. There, you will find outstanding CDs, along with current instructions for each. The changes I've made have been reflected immediately.

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klink | Jun 20, 2018 | 202 posts since 2012

Sylvia....both methods were used by me and both were screwed up.

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Sylvia | Jun 20, 2018 | 389 posts since 2012

Sorry to hear that, klink. I've been lucky, I suppose. Screw-ups are certainly conceivable with Navy as their systems and processes seem very fragmented. Compared to the average CU, they also have plenty of idiosyncratic rules that must be burdensome to administer.

2

Anon456 | Jun 20, 2018 | 249 posts since 2011

I did it online, but it was on Saturday. So those instructions do not get acted up Monday. Apparently they must go through their electronic overnight processing that happens Monday night. But the rep took care of me when I called on Monday.

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