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Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) mortgage account was received on January 29, 2018. I appreciate having the opportunity to address your concerns, and will also provide a response to the Revdex.com. Please accept our apology for the...

mishandling of your January 2018 mortgage payment. With the instructions you provided in November, we should have applied the additional funds to the January due date. Regrettably, we applied them toward the principal balance. Therefore, your January 18, 2018 mortgage statement showed both the January and upcoming February amounts due, and a $119.22 late fee. As a result of your January 20, 2018 phone conversation with our Mortgage Servicing Department, on January 23, 2018 we reapplied the principal payment as the January payment. This reversed the late fee and any indication of a late payment. At no time was the mortgage reported to the consumer credit reporting agencies as past due. Additionally, a corrected 2017 tax year IRS form 1098 is being generated, and will be available through PenFed Online and mailed to you.I hope we have fully resolved this matter. I ask that you allow us the opportunity to rebuild your trust in our ability to provide you with the best-in-class service you deserve. We appreciate that you chose PenFed for your mortgage needs, and look forward to serving you for many more years.Sincerely,                               Senior Vice President, Mortgage Servicing

Dear **. [redacted],   Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) New Auto Loan was received on October 19, 2017. I appreciate having the opportunity to address your concerns.   When your auto loan was disbursed, you were...

provided with a Promissory Note for this loan and agreed to the terms stated therein by endorsing your loan check. The terms of the Note state that you agree to provide PenFed with proof of insurance on the vehicle. In the absence of such proof, we have the right to purchase limited comprehensive and collision insurance at your expense.   Your loan was disbursed on February 13, 2017. You were notified by three letters mailed between March 4, 2017 and March 25, 2017 that, although proof of your insurance had been provided, the $2,500 deductible was too high. The maximum deductible is $1,000.   On May 7, 2017 we received notice that your insurance policy had been cancelled. We again sent letters on June 24, 2017 and July 22, 2017 explaining we had not received your proof of insurance and in turn would purchase Collateral Protection Insurance (CPI) for your vehicle. The cost of the CPI, $4,588, was added to the principal balance of your loan and we mailed a letter dated September 22, 2017 informing you of the purchase.   Confirmation of your comprehensive and collision insurance with a $1,000 deductible was received on October 6, 2017; however, there remained 104 days of lapsed coverage between May 28, 2017 and September 11, 2017. A partial CPI refund of $3,256 was applied to your loan and backdated to September 22, 2017. We need confirmation of coverage for these 104 days before issuing further CPI refunds.   I understand that a PenFed CPI representative contacted you on October 19, 2017 to confirm the refund, and discuss the vehicle title.   PenFed faces greater financial risk and expense should a borrower default on a loan if the title for the collateral has not been received, and/or PenFed is not recorded as the lien holder. Therefore, our policy allows us to compensate for this risk factor by imposing a higher interest rate on these loans. This information, including penalties, is included in the loan documents provided to you, and in the February 13, 2017 Promissory Note you signed. We believe the 150 days allowed for you to provide the title to us is more than sufficient time.   Three mailed requests for title were sent to you during the first 150-day period along with a one week warning sent by email advising you of the imminent rate change. Since your title has not been received, your rate was increased on October 20, 2017 from 4.80% APR to 14% APR.   I regret this experience left you with an unfavorable impression of the credit union, and hope my response clarifies our position on these matters.                                           ...⇄ Sincerely,                                               ...⇄ Christopher [redacted]                                         ...⇄ Vice President                                         ...⇄ Consumer Underwriting & ProcessingTell us why here...

Dear [redacted],This letter is in response to your complaints filed with the Consumer Financial Protection Bureau (CFPB), Revdex.com, and National Credit Union Administration. We will provide a copy of this response to the CFPB and Revdex.com.I appreciate the opportunity to reply to your concerns...

regarding our temporary closure of your PenFed [redacted] account. I apologize for using vague language in our March 2, 2018 email about the status of the account. You are correct, a suspension of the account versus a temporary closure is different, and reports differently to the consumer credit reporting agencies. Our Adverse Action Notice mailed to you March 5, 2018 accurately described our action as a temporary closure. Since the opening of your $5,000 [redacted] account in May of 2017, we approved a credit limit increase to $7,500 in October of 2017 and a second increase to $50,000 in February of 2018. We became concerned in February when we noted the number of applications you had submitted to us requesting additional unsecured credit, and this prompted our review of your applications. When we found a disparity between the gross monthly income stated on your most recent application and that on your paystub provided with your 2017 application, we temporarily closed the account on February 28, 2018 until we could obtain current income information, and ensure there was no fraud involved.We report credit card account information to the credit reporting agencies on a monthly basis as of the account statement date. For your account, this is the fourth of the month. This is why your report shows the closure as of March 4, 2018.Thank you for promptly providing all the documents we requested. While the CARD Act allows household income to be used for an individual credit card account, lenders are not required to do so and PenFed has chosen to use only the income of those individuals who would be account owners in our decision-making process. We have found this approach is of greater benefit to our members by reducing possible overextension of credit, and reduces the risk for the credit union. We have concluded our review of the documents you provided, and we do not have concerns the account was opened fraudulently. Additionally, based on your income and our lending guidelines, we reopened the [redacted] on March 21, 2018 at the $7,500 limit. On April 4, 2018, the account information will transmit to the credit reporting agencies, and show as open and active. There will be no indication of the prior closure.I hope my letter addresses all your concerns. Thank you for choosing PenFed as one of your financial partners. We look forward to serving you for many years.                                                               Sincerely,                                                             Senior Vice President                                                             Payment Products & Services

[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.]
Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me. 
Regards,
[redacted]

Dear Member,   Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) checking account was received on December 19, 2017. I appreciate having the opportunity to address your concerns.   Please accept my sincere apology for our delay...

providing the merchant credits to your checking account. Due to the unauthorized purchases using your PenFed debit card, we closed the card on December 5, 2017. This was done to prevent further fraudulent activity; however, the closure did not stop merchant credits from being accepted.   Regrettably, we were slow to transfer those credits to your checking account. This is not indicative of the service we wish to provide, and that you deserve as a PenFed member. I apologize for the inconvenience it caused you.   On December 26, 2017, we credited your checking for $267.60 for the six merchant credits. I hope the matter is now fully resolved.   We value every opportunity to assist you with your financial needs and hope you will give us the opportunity to earn back your trust and confidence in our ability to provide you with best-in-class service. Sincerely,  Senior Vice President Payment Products and Services

Dear [redacted],
 
Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) membership was received in my office on February 1, 2016. I appreciate having the opportunity to address your concerns.
 
Based on provisions in the U.S....

Patriot Act, PenFed must verify the identity of all potential members. To accomplish this, we compare the information provided in the membership application with that contained in a consumer credit report. If we are not able to obtain a credit report or there is conflicting information, we require additional documentation. When we are not able to review the documents in person, they must be notarized, color copies.
 
In the case of your membership application submitted on January 28, 2016, we were unable to verify your identity and address. Your membership was suspended until full identity verification could be completed.
 
Credit unions differ from other banking institutions in that an individual must be a member of the credit union to take advantage of its products and services. Every credit union has a field of membership and those individuals who fall within it are eligible for membership. Members of some defense-related organizations are eligible for PenFed membership, including the [redacted]. During your online application process, you elected to join [redacted] and paid their $14 membership fee. Your $5 deposit to your PenFed share account was also made at that time.
 
As you elected to not complete the membership process, we reimbursed you for the Voices’ dues. A check for $19 was mailed to your address on file on February 9, 2016.
 
I regret you were discouraged by the identity verification requirements for opening a new membership and wish you the best in your future banking experiences.  
 
Sincerely,
 
Christopher *. M[redacted]
Senior Vice President, Operations

Dear [redacted],
 
Your complaint filed with the Revdex.com regarding your PenFed Credit Union mortgage application was received in my office on August 28, 2015. I appreciate having the opportunity to address your concerns.
 
I was sorry to hear your application was not...

processed as expediently as you wished. Maintaining open lines of communication is essential during the mortgage application process and I am sorry we did not meet your expectations.
 
After your application submission on May 21, 2015, a Mortgage Consultant spoke with you regarding the application on May 22, 2015. It is unfortunate you did not have time to discuss your application at the time of our call.
 
Your Processor attempted to reach you three more times by telephone, email and mail. When a response had not been received by June 20, 2015, the application was cancelled.
 
I regret you decided not to proceed with your application and are upset by the resulting fee. During the application process you electronically viewed a disclosure stating:
 
I acknowledge that under the circumstances noted below, I will be responsible for all third party costs actually incurred by PFCU in processing my loan request. These costs include the $65 charge for submitted the application as well as the other third party costs disclosure on the Good Faith Estimate.
 
Circumstances:
 
1.         The Loan does not close, or
2.         Property securing the loan is Investment Property, or
3.         The purpose of the loan is to refinance an existing Pentagon Federal mortgage
 
FURTHER, I authorize PFCU to charge my credit card account for those third party costs using the credit card account number I have provided to you. In the event that the credit card cannot be used, I authorize you to deduct those costs from my Pentagon Federal deposit account.
 
I understand your disappointment with paying for an application from which you did not benefit. These are fees PenFed paid on your behalf to third party providers. We are simply seeking reimbursement for the costs we incurred.
 
As you acknowledged your responsibility for third-party fees at the onset of the application, I am not able to grant your request for a refund. Thank you for your interest in our real estate products. I hope you will consider PenFed in the future when applying for a mortgage, auto loan, or a credit card.
 
Sincerely,
 
Cindy G[redacted]
Senior Vice President, Mortgage Originations

Your complaint filed with the Revdex.com was forwarded to Pentagon Federal Credit Union (PenFed) on March 7, 2018.   Your PenFed loan was disbursed on December 7, 2017 and the first $636.01 payment was due on January 11, 2018. A payment was scheduled to transfer...

from your PenFed Share account; however, there were not sufficient funds in that account to make a full payment.   Your February 10, 2018 transfer from your checking account with another financial institution was rejected on February 15, 2018 for nonsufficient funds. We sent numerous notifications to you about the past-due loan status and the rejected payment.   At this time, the loan is due for the January 2018 due date, and is over 55-days delinquent.   We urge you to contact us at ###-###-#### to make payment arrangements and prevent further negative credit reporting.   Sincerely,   Vice President, Consumer Underwriting

Dear [redacted], Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) [redacted] account was received on June 12, 2017. I appreciate having the opportunity to address your concerns. I am sorry to hear your PenFed [redacted] account was used...

fraudulently in October of 2016. Regulation Z guidelines require that cardholders regularly review their accounts, and report unauthorized activity within 60 days from the date of the statement on which the transactions appear.  Our Card Fraud Investigations team reviewed your account.  Given the nature of the fraud, your fraud claim has been accepted. The claim is in process, along with your new [redacted] account and card. The fraudulent charges will be removed from your balance due.  I urge you to check your account at least monthly to verify activity, and notify us immediately if there are charges you do not recognize. You can view your monthly statements, as well as recent activity in PenFed Online.  I hope our actions fully resolve this matter. Thank you for choosing to use a PenFed credit card and being part of the PenFed community. Sincerely, Senior Vice PresidentPayment Products and Services Tell us why here...

Dear [redacted],Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) Auto Loan Application was received on July 27, 2017. I appreciate having the opportunity to address your concerns.I am sorry to hear you are dissatisfied with the service you...

received from us with the processing of your applications for credit. We make every attempt to be helpful, informative, and polite. PenFed employees are expected to exhibit professionalism at all times. I regret you felt rushed when you visited our branch.Due to the freeze on your consumer credit report, we were initially not able to obtain your report. Thank you for granting us access to this information so we could process your requests. The information from your credit report was used in our decision on your Visa credit card account application. While we were not able to approve your credit card request, I am pleased we could grant you an Auto Loan. We carefully reviewed your application, and found that the rate and monthly payment amount changed based on your requests to change the term of the loan, the vehicle you were purchasing, and the amount you wanted to borrow.When determining the rate a member receives, we consider many factors, including the member’s credit standing, the specific vehicle and its value, and the length and amount of the loan. As you made changes to this information, the rate we could provide also changed. I understand one of our Branch Support Representatives spoke with you about this.When the loan amount was $18,400 for a 60-month term, we approved a 7.3% rate with $511.62 payments. When the term increased to 72 months, the rate also increased to 8.5%. Your final loan amount increased to $18,745.28 with a 72-month term, $442.59 payments and a 9.1% interest rate.I apologize that your request to change your due date was not processed at the time of your call. We have now changed the due date to the 29th of the month to take effective with your September 2017 payment. Please make your August 15th payment, and then change the date for your future payments.I hope this information helps in understanding the terms of your Auto Loan. Thank you for choosing PenFed for your auto financing needs.Sincerely,Senior Vice President, OperationsTell us why here...

Revdex.com:
I have reviewed the response made by Mr. John K[redacted]. Vice President, Card Services in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.  I greatly appreciate Mr. K[redacted] time and effort on my behalf and sincerely thank him for his consideration.  I look forward to doing business with Pentagon Federal Credit Union in the future. 
Regards,
[redacted]

[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: [redacted]
I am rejecting this response because: The information that was provided was incorrect when stated in this letter, The senior officer stated my final deal was $442.00 per month which in fact the deal was done at 348 for 72 months, the terms you stated is what was preciously offered to me but after checking the calculations with the apr and terms based on the apr and the terms that payments were to high. After I brought that to the rep's attention he went back and changed it to $348.00 per month for 72 months and that's what was signed on the contract. Concerning the visit to the branch I never stated I was rushed out your branch I stated your reps were looking at me weird the whole time and they were treating me as if I should not be there and the attitude of how did I get approve for a loan there. As far as the credit card goes I was told that I would in fact get approved for the card based on my credit score and my credit report. Then after I was lied to about that credit card I was told by a rep on the phone and the banker in person I could get the overdraft account which would turn into a installment loan and that would show the bank a paying history with them and I could then re apply for the credit card. I had to leave the bank go downstairs and withdraw the money from my account to open the new account with your bank. Two weeks after I did that I received a letter stating that that account could not be open and I was lied to yet again. When I had first applied I asked foe them not pull my credit more than the time they told me about, after this ordeal I saw where there was 3 hard inquires and I was only told about one. I just would like to be treated such as any other customer and I honestly don't feel like I have!!! 
Regards,
[redacted]

Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) auto loan was received on March 10, 2017. I appreciate having the opportunity to address your concerns.I am very sorry to hear your vehicle was a total loss, and of the subsequent issues with...

your insurance settlement and Guaranteed Asset Protection (GAP) claim. Please accept my sincerest apology for the inaccurate information you received about who was handling your GAP claim. We recognize the responses and assistance our representatives provide directly impacts you; therefore, accuracy and clarity are of the utmost importance. I truly regret your experiences were not reflective of our commitment to providing service excellence.After receiving the insurance check on January 5, 2017, we began researching your GAP coverage. When we learned the GAP coverage was purchased directly through a dealership, we attempted to reach you on multiple occasions throughout January and February 2017 to advise you on how to proceed with your claim.We recognize the importance of submitting these claims quickly; therefore, we submitted your GAP claim to [redacted], the GAP provider, as a special courtesy on February 28, 2017. We were advised that [redacted] has since been attempting to reach you for additional information we cannot provide. Please contact Jordan B[redacted] at ###-###-#### regarding the [redacted] GAP claim.I completely understand your frustration with the delay in your claim submission. Due to the special circumstances, we moved your next loan payment due date to April 4, 2017 to allow additional time for the claim. Please be assured, once the final settlement payment arrives, it will be back-dated to the date of loss to avoid interest charges during this time. We hope the actions taken to address these issues meet with your satisfaction.I regret this matter caused you such frustration that you are considering the validity your financial relationship with us. I ask that you allow us the opportunity to restore your trust in our ability to meet your financial needs and treat you as a valued member of PenFed.Sincerely, Senior Vice President, Operations

Dear [redacted],   Your complaint filed with the Revdex.com regarding your Pentagon Federal Credit Union (PenFed) Auto Loan account was received on March 14, 2018. I appreciate having the opportunity to address your concerns.   I understand your concern regarding the...

potential addition of Collateral Protection Insurance (CPI) to your vehicle financed with PenFed. As noted on the loan documents you received when your loan was disbursed in 2015, we require proof of comprehensive and collision coverage with a $500 deductible and PenFed listed as the lienholder on the policy. If we do not receive this proof, we may purchase limited comprehensive and collision insurance at your expense.   In March of 2017 we received a cancellation notice from Nationwide Insurance for your vehicle. We mailed notices to you on April 26, 2017 and May 24, 2017 asking for updated insurance information. On March 14, 2018 we received proof of your new coverage through [redacted] that took effect on January 23, 2018. We were still in need of your insurance information for 2017. In our March 14, 2018 phone conversation with you, we offered to call your insurance company to confirm coverage dates; however, you did not wish to take this step.   As a one-time courtesy based on the status of your Auto Loan during the period of the insurance lapse, we waived the requirement for proof of insurance for 2017. We placed this waiver prior to the addition of the CPI policy to your loan.   I hope our waiver is helpful for you and that this response clarifies your responsibility for maintaining adequate insurance on your vehicle during the life of your loan.   Thank you for allowing PenFed to assist you with your auto financing needs.   Sincerely,                                   ...⇄   Vice President, Consumer Underwriting

Thank you for contacting PenFed Credit Union. We are not able to reply to this concern, as it is not submitted by our member. Due to strict privacy regulations, non-account owners cannot be provided with information about member accounts.

[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: [redacted]
I am rejecting this response because: You are contradicting yourself. I was advised that I could only get a deferment because I had too much "disposable cash".  Now you tell me I was considered for a 15 year loan at 1/3 of what you think I can pay, and I would not be able to make those payments?  If my disposable cash was greater than what you still expect me to pay, why shouldn't I get the 2%/15yr loan?  I'll take that offer if presented to me, and pay it in 6 years!
Regards,
[redacted]

[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: [redacted]
I am rejecting this response because:No matter what the VP stated in that letter, $1000 was taken out of my account and given to me as cash as a check at the local branch on the day of questioning as my own money. Then another  thousand dollars of my own money was put on hold. There is no record of any Share loan application on file for me, not even on line, which all banks make available for their customers to see at any given time, especially it is a Promissory Note. I even  selected the "tab" on line to review all documents, it doesn't even show any Share Loan documents available for me, I find that to be very suspicious and when I called in to complain again, the Representative stated to me, that maybe the paper work hasn't been filed yet, this was three weeks after this so called Share Loan was made to me, again in the form of a check as my own money. " Go figure!" Of course any financial institution will not and cannot admit that they took a thousand dollars of a customer's money. I am not making this up and the fact that I withdrew other monies has nothing to do with what I originally had my account at the time that I visited the local branch to cash a check that was given to me onsite that was technically my own money. I want my thousand dollars back, period! I have not deposited any monies in that account since because of this indiscretion, and as soon as I receive my refund of $1000.00 dollars, I will completely close out the account and be done with PenFed. Maybe someone need to investigate and talk to other customers about this so called Shared Loan process, which to me, totally takes advantage of customers who are denied a checking account based on credit issues, which at times are do to unfortunate or unforeseen circumstances such as myself, which was due a job loss. I joined PenFed because I thought it would offer the best service to me as a Veteran, and based on my experience so far, I am outraged. Please return my money, $1000 dollars either via deposit or a check and only then, I will be satisfied. [redacted]
Regards,
[redacted]

Dear [redacted]
*
Your complaint filed with the Revdex.com regarding your PenFed Premium Travel Rewards [redacted] account was received in my office on September 21, 2015. I appreciate having the opportunity to address your concerns.
 
I understand your questioning of the...

September 8, 2015 $273.83 charge from [redacted] Please be assured your [redacted] account was closed as requested on May 26, 2015.
 
Our examination of your [redacted] account revealed [redacted] had your authorization to submit a recurring charge to the account. Consent to the charges was provided prior to the account closure, and therefore the charges on May 12, 2015 and July 10, 2015 were authorized. PenFed is required to accept pre-approved, recurring charges regardless of the closed account status. [redacted], and [redacted] requires cardholders to cancel recurring charges directly with the merchant. 
 
Section 12 of the Cardholder Agreement for the PenFed Premium Travel Rewards [redacted] card states in part:
 
12. ACCOUNT CLOSURE. You or anyone jointly liable for the Account may terminate the Account at any time by notifying us orally or in writing. However, this will not relieve you or any of the other joint owners from liability for the repayment of any obligations arising from the use of the Account.
 
You may view the full Cardholder Agreement by accessing the following link: [redacted]
 
If you provide a merchant with your account information and you disagree with a charge they present, you must contact and inform them of your revoked consent to process recurring billings to your account. If you do not receive assistance from the merchant, you may submit a dispute with us. If there is a need to dispute this charge due to lack of cooperation from the merchant, please contact us at [redacted] to begin the dispute process.
 
I hope this information is helpful in providing you the steps necessary to resolve this issue. We value every opportunity to assist you with your financial needs and would welcome an opportunity to re-open your [redacted] credit card account
 
Sincerely,
 
John K[redacted]
Senior Vice President, Card Services

[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: [redacted]
I am rejecting this response because: I did call PenFed from the Car dealership and was told the rate will be the same! So I was misinformed - again!
Regards,
[redacted]

Dear Mr. [redacted],
 
Your complaint filed with the Revdex.com was received in my office on June 15, 2015. I appreciate having this opportunity to address your concerns.
 
First, I’d like to assure you that PenFed follows the dispute guidelines and regulations set forth by...

[redacted] when handling all [redacted] card disputes as required by Section 11.1.1.2 of [redacted] Core Rules and [redacted] Product and Service Rules. You may view the full regulations at the following link:
[redacted].
 
According to Section 11.1.28 of the regulations referenced above, merchants are required to provide proper disclosure of their cancellation policies. During our investigation we found the merchant, [redacted], was not able to successfully demonstrate that proper advisement was given of their refund/cancellation policy. As such, the dispute was resolved in the cardholder’s favor. A chargeback was processed on March 27, 2015 in an effort to recover the remaining $300.00.
 
You mention in your correspondence that the cardholder agreed to a cancellation fee of $300; however, the cardholder did not corroborate this and a second dispute of a $300.00 charge from [redacted] was processed on April 2, 2015 which was also honored. 
 
As mentioned, as a [redacted] card issuer, we are required to follow [redacted] guidelines when handling all disputes and we have done so in this case. As such, we are unable to reverse the chargeback. 
 
Sincerely,
 
John [redacted]
Senior Vice President, Card Services