Complaints

This profile includes complaints for PenFed Credit Union's headquarters and its corporate-owned locations. To view all corporate locations, see Find Local Branches.

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• 

  PenFed Credit Union

  McLean, VA 22102-3381

• 

  PenFed Credit Union

  2930 Eisenhower Ave Alexandria, VA 22314-4557

• 

  Penfed Credit Union

  1199 N Eglin Pkwy Shalimar, FL 32579-1252

• 

  Aspire Federal Credit Union

  67 Walnut Ave Ste 401 Clark, NJ 07066-1696

• 

  PenFed Credit Union

  151 West Corporate Drive Madison, WI 53714

The complaint text that is displayed might not represent all complaints filed with BBB. 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.

• Initial Complaint

  Date:03/04/2025

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  The charges (fees, interest, penalties) do not add up on my account.

  Business Response

  Date: 03/11/2025

  We received your Better Business Bureau complaint on March 5, 2025. We appreciate the opportunity to address your concerns.
  
  We reviewed your loan and found no discrepancies in the payment history. Please note that interest accrues daily on your loan, so the portion of your payment applied to principal and interest varies based on the number of days between payments. 
  
  One of our Member Concern Analysts attempted to contact you to discuss your concerns, but they were unable to reach you. If you are still in need of assistance, we encourage you to return their call. 
  
  We hope this information has been helpful.
  
  Sincerely,
  
  Senior Vice President, Operations Support
  
  

• Initial Complaint

  Date:02/28/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  In the month of January I reach out to this bank to get my payoff amount the told me the amount I need to pay of seventeen thousand and some change I send them out a check for the amount they told me am supposed to pay off after I send them the check With the full amount went back in my account they told me am still owing them after sending all the money that the claim was my pay off amount plus the extra money after on my account they told me I still owe $70 wish I pay costumer service again . After that she told me my account is all clear . I owe them nothing I pay them all off up on checking my account again this month u went back on there website they are are still billing me that I owe them I think they keep over charging us and I would like this to be rectify AsP

  Business Response

  Date: 03/06/2025

  We received your Better Business Bureau complaint on March 1, 2025. We appreciate the opportunity to address your concerns.
  
  Thank you for speaking to one of our Member Concern Analysts on March 1, 2025. We understand they assisted you with the payoff on your loan. We hope their phone call fully resolved your concerns. 
  
  If you have any additional questions, please call us at ************. One of our representatives would be happy to assist you further.
  
  Sincerely,
  
  Senior Vice President, Operations Support 
  
  

• Initial Complaint

  Date:02/27/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Our loan interest rate was raised from 6% to 17% due to no fault of our own. In sum, our interest rate was raised because another company ******* completed our title incorrectly with the incorrect mileage, and therefore there was a mileage discrepancy. Despite trying to get the issue resolved with *****, the **** and PenFed no resolution was made. PenFed has continued to tell us they cannot lower our interest rate. Every time I call PenFed, I am told a different reason why our interest rate is raised. This has cost us over a thousand dollars in out of pocket expenses. Today, when I spoke to PenFed they gave us a new reason why our interest rate is raised, that has been different to what we have been told in the last year. Despite trying to escalate the issue, we are always told different reasons why our interest rate has been raised and given no resolution or clear communication. We would like to escalate this issue to find out exactly why our interest rate has been raised, exactly how we can resolve it, have our interest rate lowered back to our regular rate, and be refunded this unethical amount we have been charged over the last year for reasons outside of our control.

  Business Response

  Date: 03/03/2025

  We received your Better Business Bureau complaint on February 27, 2025. We appreciate the opportunity to address your concerns.
  
  Thank you for choosing PenFed for your auto lending needs and for taking the time to speak with our Member Concern and Escalations Analyst on February 27, 2025, regarding remaining titling requirements.
  
  We understand your concern regarding the increase to your auto loan rate. PenFed faces greater financial risk and expense, should a borrower default when the collateral title is not on hand, and PenFed is not recorded as the lien holder. The Promissory Note you signed explains if we are not added as lienholder within 150 days following an auto loan disbursal, we reserve the right to increase the interest rate to the highest unsecured loan rate in effect at that time.
  
  Once we can confirm we are recorded as the lienholder on your vehicle, we would be happy to restore your original interest rate.
  
  If you have any additional questions, you can contact our ************** team at ************.
  
  Thank you for being a valued member of the PenFed community.
  
  Sincerely,
  
  Vice President, Consumer Banking

  Customer Answer

  Date: 03/04/2025

  [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: 22998349
  
  I am rejecting this response because:
  
  This is the first time I am being told by PenFed that my interest rate has been raised because PenFed is not recorded as the lien holder. According to your phone call records, you can see Ive spoken to a representative with PenFed at least once every other month for the last almost year. I was told the reason by interest rate went up was because the mileage was listed incorrectly at this time. This was never communicated to me by your employees for almost a year, costing me money out of my own pocket. I believe this is your error as if this was communicated I would have quickly been able to remedy this. I will not accept any solution other than refunding me the interest rate charged to me incorrectly due to your own mistake and miscommunication? Also I would like to be contacted directly by somebody giving me clear and correct communication on how to actually fix. Thank you. 

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

  
  

• Initial Complaint

  Date:02/25/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I've been in business with penfed for awhile, added credit card over last 4 years ago, eventually had 10k limit, after paying the card off within 30 days my credit line was reduced to 700$??? I virtually have zero debt, own my home, paid off rental property 18 months ago, several cars since opening this account to be unjustly dropped? My credit almost 800 with zero 30/60/90 late payments over last 8 years!!! Stay away from them scum buckets only want your business if u keep high running tab.

  Business Response

  Date: 03/04/2025

  We received your Better Business Bureau complaint on February 25, 2025. We appreciate the opportunity to address your concerns.
  
  We regularly evaluate our members credit card accounts to determine if the credit line requires adjustment. As a result of our routine account review in accordance with our cardholder agreement, we decreased the limit on your PenFed credit card and mailed you an Adverse Action Notice, which explained our decision. 
  
  As we do for all PenFed credit cards, we will continue to evaluate your account to determine if future adjustments, either limit increases or decreases, are warranted. 
  
  We hope this information has been helpful.
  
  Sincerely,
  
  Assistant Vice President
  Consumer Lending Operations

  Customer Answer

  Date: 03/04/2025

  [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: 22988016
  
  I am rejecting this response because: If pedfed wanted to be serious about looking into the matter they could simply compare credit pulls from original 10k increase to 700$ decrease! I've enclosed 784 credit score and only have car loan, hvac loan 0% interest. Never one 30 day late payment in 10 years. I cleared my balance with penfed and now you can't rob me anymore. Terrible card to have beware
  
  
  Regards,
  
  ***** *****
  
  
  
  
  
  
  
  
  

• Initial Complaint

  Date:02/22/2025

  Type:Sales and Advertising Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  As a former veteran, I believe Pen Fed is the worst credit union, and I will be advising all my family and friends to avoid it. I went to make my auto loan payment on the Pen Fed banking app, only to find that my loan had disappeared.When I called Pen Fed to ask why my auto loan was missing, they informed me that it was because I had been late on payments. I thought this issue had been resolved when I contacted them during a difficult transition period after leaving the military, as I was told I was on a hardship program that allowed me to defer payments. However, they claimed there was no written agreement on file, so it didn't matter.I was then told that my auto loan had been charged off and that a tow truck was dispatched to repossess my vehicle. I never received any written notice regarding this situation, nor did I receive an email indicating that my car was up for repossession and my loan had been charged off.When I asked if there was anything I could do to rectify this issue, the representative rudely told me it was my fault for being late on payments. She stated that my only options were to surrender the vehicle for it to be sold at auction or refinance it, which is impossible with a charge-off on my credit report.I requested a letter stating that my auto loan was charged off and detailing what I owed. The representative on the phone was unhelpful and insisted she could not send any documentation. Eventually, I received an email from her, but it lacked information about my payoff amount or any relevant details.I had to call Pen Fed again, specifically asking not to speak with the same representative, to obtain a document outlining my full payoff amount. The lack of communication from Pen Fed is astonishing, and I just wanted to reach out to someone who could assist me with my situation.

  Business Response

  Date: 03/07/2025

  We received your Better Business Bureau complaint on February 23, 2025. We appreciate the opportunity to address your concerns.
  
  PenFed makes every effort to assist members experiencing financial hardship. We carefully reviewed our records upon receipt of your complaint and can confirm that we have not received or processed a hardship application or payment extension program for your auto loan. 
  
  In October 2024, you called us to discuss your past due auto loan and acknowledged receipt of our notice of intent to repossess the vehicle. Our Collections team suggested you contact us after making a payment to see if a payment deferral could be approved. You did not contact us until over a month later, and the loan became further past due. 
  
  Our Collections team made multiple subsequent attempts to contact you by phone and email, but we did not hear from you until the loan was automatically charged off on February 14, 2025, as the last successful payment made was in November 2024. We emailed you a payoff quote and other documentation after you contacted us on February 17, 2025.
  
  Regrettably, we are unable to remove the charge-off status and can only accept payment in full. We understand this was not the response you desired, but we hope this information provides clarity on the situation. We highly encourage you to remain in contact with our Collections team at *************. 
  
  Sincerely,
  
  Vice President, Consumer Banking
  
  

• Initial Complaint

  Date:02/21/2025

  Type:Product Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  PenFed paid the county of Fluvanna $1365.59 out of our escrow account. We did not owe the county of ******** because my husband is a 100% disable veteran, therefore we are tax exempt. The county sent them a refund of $1365.59 om 19 Dec 2024. The check number is *********. They have not put the money back on our account. This is the second time they have paid the county, and it show us having a deficit in our escrow due to their error. I mortgage went up and had to be readjusted. I spoke with ****, ******* and twice with *****. You are not given access to the people who are responsible for the errors, and they are not correcting it. The customer service number is ************ option #2.

  Business Response

  Date: 03/03/2025

  We received your Better Business Bureau complaint on February 21, 2025. We appreciate the opportunity to address your concerns.
  
  Thank you for choosing PenFed for your home lending needs and for the opportunity to address your concerns about your exemption from property taxes.
  
  In June and November 2024, we disbursed funds from your escrow account for property taxes after receiving bills from your county tax office. Under your escrow agreement, we are required to disburse funds from your escrow account to settle property tax bills that they provide to us. Although the tax office returned the first disbursal, which we returned to your escrow account in August 2024, we are still currently waiting for the second disbursal refund. Our tax agent confirmed that they received the check from the tax office and have sent it to us via *****. We anticipate that we will be able to return the funds to your escrow account shortly. We apologize that your prior contacts with our Home Loan Servicing team did not ***** your concerns. We are committed to providing superior service to our members in every interaction.
  
  If you would like to discuss the option of waiving escrow requirements in the future, or have any questions about your minimum monthly payments, you can contact our Home Loan Servicing team at ************.
  
  We are very proud to serve our nations defenders, and realize you are at the very core of our membership. We truly appreciate the trust you have placed in PenFed.
  
  Sincerely,
  Vice President, Home Loans

  Customer Answer

  Date: 03/04/2025

  They updated my account and refunded the funds that was erroneously paid out.  I will reach out to them to see if they will allow us to pay our own insurance and eliminate our escrow account. 

  Customer Answer

  Date: 03/04/2025

  [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

  Date:02/20/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  To Whom it may concern,This letter is to inform you that I recently received a copy of my credit report that your company publishes and after reviewing it I found a number of items on the report that are inaccurate. The accounts in question are listed below. Please send me copies of the documents that you have in your files as of this date that you used to verify the accuracy of the accounts listed below. COMPANY NAME Pentagonbc ACCT #: ************ ***. $0 Under the Fair Credit Reporting Act, 15 U.S.C. 1681g I have the right to demand that you disclose to me all of the documents that you have recorded and retained in your file at the time of this request concerning the accounts that you are reporting in my credit report. Please dont respond to my request by saying that these accounts have been verified. Send me copies of the documents that you have in your files that were used to verify them. If you do not have any documentation in your files to verify the accuracy of these disputed accounts then please delete them immediately as required under Section 611(a)(5)(A)(i). By publishing these inaccurate and unverified items on my credit report and distributing them to 3rd parties you are damaging my reputation and credit worthiness.

  Business Response

  Date: 03/03/2025

  We received your Better Business Bureau complaint on February 21, 2025. We appreciate the opportunity to address your concerns.
  
  Our records confirm you opened a Premium Travel Rewards credit card with PenFed in May 2013. You made purchases and payments on the account, but we did not receive payment after June 11, 2019. We charged off the balance due to non-payment and sold the account. You may request copies of your account statements by contacting us at ************.
  
  We reviewed and confirmed that the information we furnished regarding this account to the consumer credit reporting agencies is accurate and will be neither changed nor removed.
  
  We trust this information is helpful. Similar subsequent unsubstantiated claims or requests will be dismissed as appropriate.
  
  Sincerely,
  
  Vice President, Consumer Banking

• Initial Complaint

  Date:02/20/2025

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am not obligated for the debt claimed by PENTAGONBC. There is no contractual agreement between me and PENTAGONBC, and they have not furnished the original agreement as requested.

  Business Response

  Date: 02/24/2025

  We received your Better Business Bureau complaint on February 20, 2025. We appreciate the opportunity to address your concerns.
  
  We also received your credit bureau disputes regarding the ownership and financial responsibility of your PenFed Credit Union credit card. Based on our findings, the ** Theft claim that we processed on November 8, 2024, was denied and the case closed. Our findings are outlined below:
  
  PenFed records reflect a history of payments posting to the account. Using internal resources, we have determined that the personal identifying information including the address, email and phone used to open the account verify to you. PenFed records reflect verifications were authenticated using a valid number verifying to you.
  
  Due to non-payment, we charged off and subsequently sold the account to Security ********************** Services. They now own the debt and are responsible for its servicing. Please direct all future inquiries to them at ************,*********************************************************************************************, or *****************************. The account will not be deleted from your credit report.
  
  We hope this information is helpful.
  
  Sincerely,
  
  Vice President, Consumer Banking 

• Initial Complaint

  Date:02/20/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I had a car loan with penfed and I totaled my car in September of 2023, i reported the total loss and i tried to get gap to cover it but they would not cover all of it. I kept getting *** put on my loan even after i turned in papers, as well as I called them so many times it took them over a year to remove it, as of January 2025 it was finally removed. I looked on 02/20/25 my account was charged off, when asking why they said that after 120 days they would do that. I stated that I was never told that, I have been through so much trouble with them and that nothing was right with what they were doing. What they did was unfair and wrong, my credit report shows something bad and i did not do anything wrong, I was 100% with my payment history. If i was to of known that they would of done a charge off i would of came up with the money to pay it off. They never gave me any warnings of what was going on or that my account would be closed, it is not right what they did and they did let me know anything and i was on the phone with them so many times during the process of getting cpi removed and was never told anything. .

  Business Response

  Date: 03/06/2025

  We received your Better Business Bureau complaint on February 20, 2025. We appreciate the opportunity to address your concerns.
  
  After receipt of your complaint, we asked a Collections Specialist to contact you to discuss your concerns regarding your auto loan account. We understand you spoke to them on February 28th, and they went over your account details and the amount you needed to pay. We see you have since paid the account balance in full. We will update your credit report to remove the charge off and report your account as paid in full as of March 4, 2025. Please allow up to 30 days for the update to reflect on your report.
  
  We hope the information shared on the call was helpful. Should you have any additional questions regarding this matter, we encourage you to reach back out to them.
  
  Sincerely,
  
  Vice President, Consumer Banking

• Initial Complaint

  Date:02/13/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am filing this complaint due to ongoing inaccuracies on my credit report caused by this company's reporting. These errors are negatively impacting my credit score and financial stability, despite my repeated attempts to resolve them directly with the company.Given that these issues remain unresolved and continue to harm my credit, I am reaching out to the Better Business Bureau for assistance in ensuring a prompt and thorough review. I kindly request that this company either correct or remove the inaccurate items from my credit report. Thank you for your attention and assistance in resolving this matter.Details of the account involve are as follows;Account Name: ********************** FCU Account #: ************Date opened: 11/01/2019 Balance: $39,962.00

  Business Response

  Date: 02/28/2025

  We received your Better Business Bureau complaint on February 13, 2025. We appreciate the opportunity to address your concerns.
  
  We carefully reviewed your complaint and our credit reporting, and confirmed it is accurate. We have responded to your multiple credit reporting disputes confirming that our reporting is accurate and the account will not be removed from your credit report. You are responsible for the account and the outstanding balance. PenFed charged off the account due to non-payment, and assigned it to **** ****** for collection.
  
  We hope this information is helpful. We encourage you to work with **** ****** to make amicable payment arrangements. They can be reached at ************.
  
  Sincerely, 
  
  Vice President, Consumer Banking