ComplaintsforPenFed Credit Union

• Initial Complaint

  12/21/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Answered

  More info

  I have a penfed account, I was trying to send a wire and they locked my account because I was unable at 77 years old to retrieve a text while on the phone(flip phone). They asked me to prove who I was and I did several times, with drivers license, social security card, ******** card and another proff of who I was. They asked for a lease or utility bill which I do not have, the utilities like I told them is included in my rent and not in my name. I am month to month so there is not a lease. The landlord drew up a paper with the information and signed it they are refusing to accept it. They want what I cannot provide. I have so much mail with cc bills with this address on it. One person said phone bill will work the next refused the phone bill. I cannot access my money for three days!!!1 They are being difficult no matter what I provide them. I would not have all the bills in my name and address and all the other stuff I am providing them if I was not ME!!!!! They are being ridiculous!

  Business response

  01/04/2023

  We received your Better Business Bureau complaint on January 3, 2022. We appreciate the opportunity to address your concerns.
  
  Thank you for choosing PenFed as a safe home for your funds. Security is a top priority for PenFed. The need for a passcode is part of our authentication strategy for high-risk transactions. It is not our intention to cause any inconvenience to our members and regret our request for identity verification documents on December 19th caused you any problems.
  
  Thank you for submitting the required items and taking the time to speak with our team. On December 21st, we removed the restraint on your membership profile and processed the wire transfer the next day.
  
  Thank you for being a valued member of the PenFed community.
  
  Sincerely,
  VP, Enterprise Fraud Operations

• Initial Complaint

  12/14/2022

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  Applied for a HELOC loan and was denied due to low home appraisal. I disagreed and refuted with current real estate comparisons. I spoke to the loan processor to express my grief I was told the bank sided with the appraiser *****************.

  Business response

  01/10/2023

  We received your Better Business Bureau complaint on December 29, 2022. We appreciate the opportunity to address your concerns.
  
  Thank you for considering PenFed for your lending needs and for the opportunity to provide clarification on your appraisal concerns.
  
  On July 18,2022, we received your electronically signed Appraisal Fee Disclosure agreeing to a non-refundable appraisal fee. After conducting an inspection on August 6,2022, and reviewing comparable sales, the appraiser valued your property at a lower value than you estimated in your application.
  
  Our appraisal agent reviewed the information you subsequently provided, however, they determined they appraised the property at the correct value. As a result, we were unable to proceed with your application based on collateral value.
  
  We understand this was not the outcome you wanted but hope you keep PenFed in mind for your lending needs in the future.    
  
  Sincerely,
  Senior Vice President, Mortgage Chief Operating Officer

  Customer response

  01/11/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:I provided proof of the appraisal was undervalued by PenFed hired appraiser. During the appeal process I was told that PENFED sided with the appraiser even with the recent comparison I submitted proving the appraiser undervalued my home which PenFed agreed.
  
  Regards,
  
  **********************
  

• Initial Complaint

  12/13/2022

  Complaint Type:

  Customer Service Issues

  Status:

  Resolved

  More info

  On 12/13/2022, I tried to log in to PENFED.ORG at around 5am. The Penfed site show system was down for maintenance. Tried over the next 2 hours 45 minutes, check last at 7:41 am; site still down for maintenance.Called ************ at 7am to get assistance; the *** told me the site was down and was not pleasant in telling me to call them back in an hour.Penfed cannot deny any customer access to their accounts for such a long extended period of time, without first notifying us that there system is going to be down for a long time. I should not have to build my banking needs around a company that can't afford a banking system that works.

  Business response

  01/12/2023

  We received your Better Business Bureau complaint on December 29, 2022. We appreciate the opportunity to address your concerns and apologize for any inconvenience you experienced while attempting to access your PenFed Online account.
  
  We closed your membership as requested on December 19, 2022. However, after closure, you received cash redemption funds from your recently closed PenFed credit card. We issued those funds to you by check on December 29th and our records reflect this check was paid on January 5th.
  
  Please contact us directly should you have any further questions or concerns.
  
  Sincerely,
  
  Senior Vice President, Operations Support

  Customer response

  01/15/2023

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is a bloviating, meandering, sort of satisfactory to me.   Penfed in their response did not address the issue as to why their online banking system was down, denying access for nearly 3 hours.  I left Penfed because of their antiquated Online Banking System being down on multiple occasions for updates, poor customer service.  And I must mention, I am now being paid 3.75% on my savings vs the mediocre amount of interest paid by Penfed.  One final note,  I found that Penfed locks down funds for 5 business days when funds are transfered from Penfed savings to Penfed checking and then back from Penfed Checking to Penfed Savings.  Digital funds never left Penfed but where held unnecessarily for 5 days.  
  
  Regards,
  
  *****************************
  

• Initial Complaint

  12/08/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  The payment for my internet service was paid to an impersonation Company called ***** **** by the bank employee. The bank rejected the online payment that I made via the bank website. I then called the bank to ask them why was my payment declined. The staff then asked me about the name of the company that I was making payment to and for what service. I told her that my internet service was turned off by *******/ *******. She then told me that I am going to authorize it. Albeit, she did not mention a different name that shows up on her computer which turned out to be ***** ****- an impersonation Company. She authorizes payment to the Fake company.   The company had earlier told me that my service will be back online in 5 minutes after making the payment. I attempted to log on to my computer only to find out that my service was still not working. I contacted the bank back and the operator told me that the bank fraud protection will be able to refund my money back to me, and he then transferred me to the department. The Fraud staff told me they will not refund the payment because I gave them the authority to make the payment. I told them that the staff did not tell me that she was making payment to Promo Tech because I have already told her that I am paying to reinstate my internet service that was turned off. Additionally, I told her that I need to be online at 10:00 am for a job search and interview on ** Gov ******* Hiring Process today. She said I should file a complaint with the government for resolution. I needed this fund to enable me to log into the internet for this crucial job interview today and there is no other help for me if the bank failed to refund the money back to me.

  Business response

  12/23/2022

  We received your Better Business Bureau complaint on December 21, 2022. We appreciate the opportunity to address your concerns.
  
  Our records show on December 12, 2022, you submitted a dispute for the charge to *********. We issued a provisional credit on December 14th. After further review of your dispute, we determined the merchant issued a refund to your account on December 13th. As a result, on December 29th, we will be reversing our provisional credit. For your records, we also mailed you a letter with this information on December 22nd.
  
  We hope this information is helpful.
  
  Sincerely,
  
  Vice President, Payment Product Operations

• Initial Complaint

  12/08/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I defaulted on a $5,700 car loan with PenFed (the total actual Charged-Off amount was less than $5,700 but more than $350). PenFed eventually sold the debt to a 3rd Party. PenFed originally offered me a settlement of the debt for the sum of $350 (just after the Date of First Delinquency, and prior to Charging Off the debt). I immediately sent the $350 to PenFed, but they rejected the payment and returned the letter to me with my uncashed check. After subsequently selling the debt to a 3rd Party (and inflating the amount due), PenFed engaged in an unlawful collusion with the Credit Bureaus in order to force me to suffer many hardships. PenFed (with the assistance of the Credit Bureaus) constantly removed ALL positive payment history from my positive, closed Trade Lines. This forced me to constantly dispute my positive Trade Lines, which PenFed and the Credit Bureaus then exploited by also simultaneously disputing the negative Trade Lines (which I did not authorize). This also then allowed PenFed to illegally repost previously lawfully deleted negative Trade-Lines to the Credit Bureaus, in addition to PenFed adding more recent late payment statuses (or recent charge-off statuses) to the negative Trade Lines, thus lowering my Credit Bureau scores and resulting in constant ongoing hardships for me. PenFed has engaged (with the Credit Bureaus) in a constant harassment of me via a consistent campaign of inaccurate information reporting. PenFed also refused to respond to a hardship offer I made on a defaulted $472 Line of Credit. These actions could be construed as discriminatory, if ALL PenFed members were not treated the same way I have been treated. My perception is that PenFed (through its' Employees) is trying to PUNISH me for defaulting on these debts. PenFed is operating in an unethical and potentially unlawful way by participating in this type of behavior with the Bureaus. PenFed is not operating in the interests of its' Shareholders, nor according to its' Charter.

  Business response

  12/30/2022

  We received your Better Business Bureau complaint on December 21, 2022. We appreciate the opportunity to address your concerns.
  
  Thank you for the opportunity to address your concerns.  
  
  When PenFed sold your charged-off auto loan debt to Security Credit Services (SCS), the unpaid principal balance on the account reflected accurately. On December 27, 2022, we mailed you copies of the sale notice and the statement showing the account balance after your last payment for your records.    
  
  As per our response to your October 2022 ************************************ complaint, we conducted a thorough review of the information we are furnishing to the credit reporting agencies on all of your PenFed accounts. All PenFed reporting has been confirmed as accurate. The credit reporting agencies determine how long they display information on your credit report based on their unique rules.
  
  PenFed has no record of offering or accepting any settlement offers on your accounts or receiving a hardship application. We would like to assure you that PenFed is committed to fair and responsible lending. PenFed will not permit or tolerate discrimination in any aspect of the credit transaction process.  
  
  If you would like to discuss your auto loan account or make payment arrangements on your outstanding balance, you can contact Security Credit Services at ************. If you would like to discuss your charged-off overdraft line of credit account, you can contact Nationwide Credit Corporation at ************.
  
  I hope this information is helpful.
  
  Sincerely,
  Vice President, Collections

  Customer response

  01/03/2023

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed as Answered]
  
   Complaint: ********
  
  I am rejecting this response because:
  
  The words that you have stated to me here are lies, lies and more lies. I attempted on many occasions to settle both the defaulted car loan and the defaulted line of credit with PenFed. I filed numerous complaints with PenFeds customer service department, both on the credit card side and the personal loan side regarding PenFeds refusal to discuss, evaluate, or negotiate settlement of these debts during a period of intense hardship that I experienced. I have records upon records upon records of dozens of phone calls that were made over a period of 1-2 years, where PenFed clearly discriminated against me, and refused to even acknowledge my hardship requests. If these lying allegations that PenFed has brought forth or not immediately addressed, and if these alleged debts are not wiped clean, PenFed will see me in both arbitration and in civil court, but I will be the Plaintiff. There will also be complaints filed with the office of the Comptroller of the currency, and every other Authority (including my Federal and State Representatives) that I can think of to move this forward. It is truly appalling that an organization like PenFed would be allowed to operate outside of its charter the way it has with regards to my specific complaints. I strongly suggest that PenFed revisit the historical record before it attempts to do anything about closing out this Better Business Bureau complaint. Things can only get truly ugly from here on a legal basis going forward if my concerns are not addresses immediately. 
  
  Regards,
  
  *************************
  

• Initial Complaint

  12/03/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  I have debt protection on all three of my accounts. I was approved to use my benefits for disability. Two payments have been submitted for my ********* card but hasn't been applied. They only submitted that my payment is $20 a month for my ********* card but its $91 per month. Although i applied for the benefit regarding all of my accounts i'm not receiving it for my ******************. I called and the rep supposedly sent the issues over to the backend to correct. I haven't heard anything and neither am i going to continue to call. These issues need to be corrected. Penfed needs to let securian know that an extra $142 needs to be sent for my ********* card. Penfed also needs to apply the two $20 payments to my ********* account that was sent to them. Penfed needs to let securian know that i need my past and current benefit payment sent for my ****************** card. This is a major issue, i have proof that the two $20 payments has been sent to Penfed but has not been applied to my account. I hate to file this complaint but i need fixed asap.

  Customer response

  12/17/2022

  -------- Forwarded message ---------
  From: ********** <********************>
  Date: Sat, Dec 17, 2022 at 4:20 PM
  Subject: ********
  To: <[email protected]>
  
  

  Y'all are just now sending this complaint to the company. The issue is already resolved, this is crazy. Close the *** complaint 

  
  

  Sent from my ******** 5G Device

• Initial Complaint

  12/01/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  On November 14, 2022, a payment to a credit card company in the amount of $8,920.90 was debited twice. I have made several attempts via the established process to contact PFCU regarding the problem and speak to a representative about this matter. Although PFCU did attempt to reverse the one erroneous charge, it has not yet successfully done so as of the date of this complaint. I now have additional credit card payments coming due and will not have sufficient funds in my account to cover these if I do not get the problem corrected by December 8, 2022.

  Business response

  12/19/2022

  We received your Better Business Bureau complaint on December 15, 2022. We appreciate the opportunity to address your concerns.
  
  On the morning of November 14th, we experienced a system error which caused us to debit your account twice. Please accept our apology for our error, for our delay in resolving the issue, and for any inconvenience this may have caused you. We credited your account with $8,920.90 on December 6th and corrected your account balance.
  
  We are sorry to hear you were disappointed with the service you received. We strive to take perfect care of our members, but when we fall short, we appreciate the opportunity to make it right. 
  
  Sincerely,
  Senior Vice President, Consumer Products

  Customer response

  12/21/2022

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  
  Regards,
  
  *****************************
  

• Initial Complaint

  11/29/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  In July 2022 - I got behind on my monthly payment due to being in the hospital due to covid in which I was hospitalized for over 45 days. The payment that was automatically set up at $403 on 7/12 was returned on 7/15. I call in in August and explained my situation and was told about a re-aging program which entailed an initial payment of $136 and then 6 months of $136 - I agreed to this. In October PenFed tried to debit my account for $1049 instead of $136. I called and was advised that was incorrect and that customer service and the collections department were not communicating with each other, and notes were not detailed but for me not to worry everything would be taken care of they would remove the automatic payment, and that I need to make sure that I make the $136 payment each month. November Penfed tries to debit my account for $1092 again instead of $136. Now during all of this, I am making my agreed monthly payment of $136. On top of that, I got a notification on my credit report that since July my account has been reporting 30 - 120 days late. I spoke with a rep and was told that I was paying the incorrect amount - I was supposed to be paying $160, but my account has been charged late fees and NSF fees. - was told nothing can be done about the late payments being reported to the credit bureaus and cannot waive the late payment fees or the NSF because I haven't been making the full $162 payment. Please tell me how it is that when I never agreed for the entire past due balance to be debited from my account not only once but twice and was NEVER told that it will report late to the credit bureaus if I am in a program to get me back current. Every time I speak to a representative, I am being told something different about my account

  Business response

  12/29/2022

  Dear member,
  
  We received your Better Business Bureau complaint on December 14, 2022. We appreciate the opportunity to address your concerns.
  
  After review of your account, we found during the re-age program initiated in August 2022 we inadvertently miscalculated the required payment amount. Our management team has been made aware and have taken steps to ensure this does not occur again moving forward. The referenced automated debit you had established through PenFed Online was cancelled on November 29, 2022.
  
  Your account still qualifies for a re-age, and we contacted you on December 28, 2022 to confirm what occurred and advise of your new monthly payment amount. However, since your account has been late multiple times since March 2020, as well as prior to the re-age, we will not change our prior reporting to the consumer credit reporting agencies. We believe the integrity of the information obtained through these agencies is reliant on all financial institutions reporting full and accurate information.
  
  I trust our actions and this response have provided clarity to your concern.
  
  Sincerely,
  
  Vice President, Collections
  Tell us why here...

• Initial Complaint

  11/28/2022

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  I refinanced my used car and new car at PenFed back in the spring of 2022. I received a letter saying they didn’t have my insurance on my used car even though ******** sent them the information. I had to call ******** again to have PenFed notified of my insurance. I called PenFed 2 weeks later and they said my insurance was received and I still received notices of failure to provide insurance up until August of 2022. Then in August of 2022 I received a letter saying they never received my lien from ***** and that the “Title Application packet” was never received. After several attempts (phone calls) someone was able to inform me of the title application packet is actually called a title and registration application in the state of Arizona. I had to complete the title application for both my ***** and ****** and purchase the title because PenFed lost the title from *****. I sent PenFed the Title and Registration Application in separate envelopes along with the ***** title. penFed said it wasn’t completed correct for just the *****, I had the wrong date but everything is perfect on the used car (******). This was finally completed mid September. I just got a letter in the mail after changing my address because if PenFed sent mail to my address I wasn’t receiving it. The letter stated the liens still haven’t been placed and it is not late November. I would like a response from someone who is going to take my case seriously as my rates are going to be raised to 700 dollars more. This is a scam they are trying to pull and the credit union needs to be investigated.

  Business response

  12/23/2022

  We received your Better Business Bureau complaint on December 12, 2022. We appreciate the opportunity to address your concerns regarding your PenFed auto loans.
  
  We are grateful you chose PenFed for your auto loan needs, and apologize your previous contacts with us did not fully resolve your concerns. We strive to provide our members with best-in-class service with every interaction, and regret we let you down.
  
  We received a perfected lien for both of your auto loans on December 6, 2022,and we fully reversed the interest rate and payment increase. Thank you for taking the time to speak with our Senior Manager, Collateral & Insurance Administration on December 12, 2022. Please contact them directly if you have any further questions or concerns.
  
  Thank you for being a PenFed member. We value every opportunity to assist you with your financial needs.
  
  Sincerely,
  
  Vice President, Unsecured Loan Products

• Initial Complaint

  11/28/2022

  Complaint Type:

  Service or Repair Issues

  Status:

  Resolved

  More info

  I have equity line of credit (HELOC) loan #********** from Penfed. When the interest rates were going up, I called in couple of times (all calls recorded) and asked what can be done. I was told by various people in their team that there is no option to lock in rate. When I again called on Nov 23, 2022, this time representative in mortgage team said I can lock in my rate for the amount of HELOC already used. This information is coming too late when the rates have gone up from 3.75% when I first called till now. I should not be responsible if Penfed is not training their team properly. I need them to help me lock in rate based on initial call I made to Penfed requesting the same.

  Business response

  12/19/2022

  We received your Better Business Bureau complaint on December 12, 2022. We appreciate the opportunity to address your concerns.
  
  Thank you for choosing PenFed for your home lending needs. Providing accurate information is imperative to our goal of supporting your financial well-being. We apologize that
  during you November 23rd call with our Mortgage Servicing team, our representative incorrectly advised you that your variable rate account was eligible for a rate lock.
  
  Thank you for taking the time to speak with our Mortgage Servicing team again on November 29th to clarify your account was not eligible for a rate lock, and for speaking with our Member Experience an Escalations Analyst about your concerns on December 12th.
  
  We hope you will accept our apologies that we have not provided the best-in-class service you deserve and trust your recent experience does not affect your overall impression of our credit union.
  
  Sincerely,
  Vice President, Home Loans

  Customer response

  12/20/2022

  [A default letter is provided here which indicates your acceptance of the business's response.  If you wish, you may update it before sending it.]
  
  Better Business Bureau:
  
  Penfed acknowledged I was given incorrect information and will do better in training the representatives. I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me. 
  

  Thanks BBB!

  Regards,
  
  *********************

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩