Pentagon Federal Credit Union

I can't even think of where to begin with this company. The headaches began with signing up with them for a new car loan. Being 23 at that time, my credit was hardly established. To PenFed, apparently this makes you a risk. They forced my father to co-sign this agreement, so that I could not default on the loan.

Now, in order to set this up, they need a record of a pay stub to verify income. No problem for him; he works for a major corporation and he routinely receives his check in the mail every other week. I work for a small company who offers direct deposit - a convenient, no-hassle way for an employee in the 21st century to be paid on-time, every time. PenFed is not in the 21st century. Therefore, unable to produce said printed paystub (it's electronic), my father had to co-sign on the loan. "Whatever, this will get set up and I'll never think about it again" - wrong!

Moving onward and upward in my carrier, I decided to change banks to one that would offer a better interest rate in order for me to gain some beneficial interest for money I didn't touch much. PenFed will not make this move easy.

They'll tell you, like they did me, to fax in a paper form (good luck even finding it on the website without a map and compass). That's right, fax only - nothing electronic. Like I said, PenFed doesn't embrace 21st century technology like email or online forms. By the way, if you're looking for the form it's called "Authorization Agreement for Automated Clearing House (ACH) Debit", so I wish you luck in finding it.

So, I close my account at my old institution, fax in my form to PenFed, and go on with life, until a month later when PenFed withdraws funds from my old account. Seeing as that account no longer exists, I'm issued a statement by PenFed informing me I have no source of payment. They inform me it takes 1 month to process their proprietary paper form. I wonder if it would take a month's time if it were electronic. Somehow, I doubt it, and don't ask me why it takes that long, and don't ask them either because they don't know. It's just the rules, they say.

So upon changing banks one more time, I'm in the same situation, only this time, I was prepared. I filled out the form in advance, actually 2 months in advance. Two months, same **.

I'm told this time by a supervisor that they don't know why it took longer than 30 days to process. I swear I was told, "We don't know". I would tell that to a jury, hand on the bible. The company just doesn't know why it took so long. Imagine GEICO or another Fortune 500 company saying that they didn't know.

Never ever do business with this sham of a company. They're no more than a group of low-level, uneducated **, who somehow got approved by the federal government to form a financial institution. Absolute **.

Pentagon Federal charged me $30 as a fee for an ACH start up. No, it is not a late fee. I paid the first month of my loan by personal check. They asked me to do this even though I requested auto withdrawal from my checking account. They said I should pay by check the first month or two to avoid a late fee if the ACH did not go through correctly.

We financed a new car with Pentagon Federal. At the dealership, the Pentagon Federal loan agent asked if we wanted GAP coverage and explained that it paid off the loan balance should the car be totaled and we owe more than the car is worth. We said yes to the coverage. It so happened that two years later my husband was rear-ended and that car was totaled. Pentagon hounded us for payment, even though we told them that the insurance company would be paying the car off. After a few months the calls stopped so we assumed they had gotten the payoff.

Three years later they begin calling us saying that we owed a balance for the car. I spoke to a "Mike" who said that gap only covered 125% of the MSRP, and then I spoke to "Sheri" who said that when the insurance payment was made it paid the car note for three years, not paid the car off. Erik assured me that the GAP coverage had been applied. I then spoke to "Donna" who said she thought gap covered the amount financed and said she would help but did nothing. The calls have kept coming and no one wants to admit that they lied about the gap coverage. On the Pentagon Federal Credit Union web site I found where it states "GAP coverage covers the loan balance that your primary insurance carrier did not cover." To date they are threatening to forward my file to attorneys and bill me for the fees.

I've been a loyal and always on-time customer of PFCU for over 20 years. However, during the past 2 years, they have degraded a lot of their service to me even denying me a car loan when I have bought and paid in full and never missed a payment for 3 cars. I have good credit and my monthly payroll deposits are over 10,000 Dollars.

They can care less about my tenure with them and that really is making me consider finding another bank. Their criteria for rating a customer is not fair and whoever makes their business decisions is very unfair and will make them lose a lot of business. They probably don't care because they have a lot of active duty members so that is a lot of money they bring in easily. Be careful when selecting your financial institution. If they won't work with you then they are not worth it.

Pentagon Federal Credit Union has established a policy of switching credit card accounts to paperless without the customer's authorization. This has happened to me twice this year. Each time I called to have that switched back, the representative informed me that PFCU has numerous complaints. That maybe true, but they aren't doing anything about them.

If you don't get your statement, you may not have a reminder to pay the bill and therefore have late fees and credit report issues.

As many complaints state: "Is there some federal agency you can complain to that will take action on consumer complaints?"

I once had a regular share account with Pentagon Federal Credit Union, which I passed over to my son, Peter. He now tells me that Penfed says the account is no longer valid and there is no money to be had. Please help me get the facts. Thank you.

The typical PFCU reps response...I am sorry that your request was not acted upon and there is nothing I can do now.

The financial impact to me because of PFCU failing to accomplish my requests...additional bank fees for stop payment requests (even though PFCU never stopped the payment), overdraft fees by other financial institions due to PFCU failing to accomplish ACH stop actions...

PFCU has gone downhill...forget doing business with them...even PFCUs loan processing is filled with "undisclosed fees" that will bite you in the end.

My husband and I applied for a refinance with Pentagon Federal Credit Union. They selected an appraisal company in Doylestown, PA. The location of our property is in a different county altogether. The appraisal came back, and the comps used were from older than 6 months ago, because they couldn't find any and over a mile from our house. The appraiser came in for 10 minutes with our babysitter, who was here during the day. We noticed many discrepancies on the appraisal, not taking into account appliances that were asked on the appraisal, our deck, and our upgraded doors/windows with energy efficiency. The percent of our basement finished is more than what they stated.

We disputed the appraisal, and they made us get other comps and they would compare. We got other comps, and they said, "No, sorry. They are too many miles from your house." But they initially stated they would consider as long as they sold within the past 6 months, which they did. The dispute process they used went to the same appraisal person. What kind of dispute process is that? The person you disagree with answers a dispute?

I am wondering if this is a scam to get people interested in lower interest rates to low ball their houses and make money. I told them I would pay for an independent appraisal and have not received an answer. That to me is an appropriate dispute. They forward it to their supervisor, and they said that it should not even go to dispute?

Applied for the "no fee" home equity loan. When I received the truth in lending statement, there were actually $139.00 in hidden fees. Pentagon brushed this off as a legal technicality - we have to add the fees, but won't really charge you and then told me I would have to pay $300 for an appraisal which brought the "no fee" loan to $439. This is excessive, being that I was only looking to pay off the balance of an existing mortgage between $39,000 and $40,000. I explained that an appraisal was done less than 3 months prior which valued the home at $205,000, but they would not accept this outside appraisal. I believe that their advertising is deceptive and they deliberately strung me along until we were so far into the refinance that I would go along with the fees.

During the loan process, PenFed required that I change homeowner's insurance showing PenFed as 1st lien holder prior to the completion of the loan and prior to PenFed disclosing the fees. Regrettably, I did so and now for insurance purposes PenFed is the 1st lien holder and I am stuck with the aggravation of undoing this. I am certain that when the actual lien holder gets wind of this, I will be forced to liquidate assets and pay of the balance of the loan.

I applied for a refinance of my 5/1 ARM. I submitted the application online and then was contacted by an agent (Diana M.). Pen Fed holds my current mortgage and a home equity line with zero balance. So they were well aware of this. The things get somehow complicated and they said that they would require a second appraisal. I did not want to pay the cost of the second appraisal as they chose the appraiser and the cost was supposed to be covered by me - a violation of the good faith estimate.

A few days later, the appraiser showed up at my door anyway. I was not home and the nanny let him in, he did his job. The loan eventually did not get approved. We were called by another sleazy sales guy asking us to close the heloc and other conditions that were not brought up before. After the refinance fell through, they still charged us $1300 in fees. I wanted to talk to them about this and after 5 calls and no reply, I am looking at other legal means to settle this down.

I tried to get an auto loan from Pentagon Federal Credit Union. They told me I needed a paper title for about a week. Florida is electronic paperless. Neither the customer support supervisors or managers know how to work in a paperless environment. Okay, so they now admit after about a few weeks that it isn't necessary. So, I sent them the paperwork they requested several times but each time they said they didn't get it.

This happened for both my equity loan and my auto loan. I finally got a manager and she said "Oh, yes I can see it it's here on the computer". Okay, when I got the documentation I called up and told them I don't want credit life. A girl marked on the form CL and threw it over to the loan folks who intepret this as close loan so they put a stop check. I noticed that money was being taken out of my account so I called and they told me the stop check was issued.

I finally talked to a manager and she told me they are sorry and it was a mistake. I have to start the procedure all over again. I always get a different person when I call. They are running a country club and don't seem to care. Here are the things that I found out (Between the equity loan and the car loan):

1) No one was on the same page. Customer service,supervisors, managers will all give you different telephone numbers or tell you something different from the previous person.

2) There were no numbers to call and you will find it hard to get any information.

3) Training seems to be lacking in both the management,customer supervisor areas.

4) Our federal government needs to do an investigation of this organization.They clearly need some guidance on how to run this business. It is important because they service military personnel and these people in harms way need better treatment than this. I hope you will send this to some oversight committee on banking and credit unions. I have been working on an auto loan for a month. It would be nice if you could get a loan officer. Every time I call they are not in their office. I, of course, got a number after a month. I see other complaints so I do not feel alone. Our troops deserve better treatment.

I applied for a fixed equity loan at Pentagon Federal Credit Union. In their home equity disclosure, it states for applications with an LTV, 60% or less, a tax assessment (in approved counties) or AVM can be used for value, if available (tax assessments in approved counties) and AVM's can only be used on loan amounts $250,000 or less. I am borrowing far less than 50% loan to value. They tell me I have to pay $300 for the appraisal.

When I tell them my loan that the documentation seems to lack any clarity, they tell me it's policy and required by the National Credit Union Association. I finally got a hold of a manager and it seems for him, everyone has to pay this fee. I wish that they had some clear truth in lending laws that shed clarity on this, but it seems all they have to say is it's policy and you are supposed to accept it. Is there some federal banking oversight committee that I can talk to? Every time I call, I get a different person.

Here we are 60 days after purchase and I'm still trying to get my 5% cash back.

I wonder how many people have been scammed and don't check this.

PENFED- STAY AWAY!

My purpose in joining PenFed Credit Union was to obtain the benefits of a PenFed credit card. This $20. they now describe as a "donation" was described to me as an account activation fee for non military members. After opening the account, I was informed that the credit card would be "in the mail".

After a month of waiting for the credit card which never arrived, I contacted PenFed. I was told that I now had to submit two years of tax returns in order to be considered for a credit card.

PenFed was aware from the outset that my purpose in opening an account with them was to obtain a PenFed credit card. I assumed that my credit record (well over 800) was checked at the time of applying for the prerequisite savings account. I was never informed that I would have to submit tax records as a condition for obtaining a credit card. I have never been asked for tax records to obtain a credit card, and I have never been denied a credit card. Requesting tax records from me - and only after I had to call them a month after I was supposed to have received this card - is highly irregular and suspicious.

I feel that the entire process of obtaining a credit card from PenFed has been misrepresented to me.

After hearing numerous radio ads about the 3.99% auto loan, I contacted Pen Fed and inquired how to get such a great rate. Wanted to refinance current loan of 5.74%. I was told the only requirement was that of membership and, given my employer, I had no problem joining. I do however have a problem with the minimum $25 required for a specific military fund. Not that I don't support our military so don't jump on me because of that.

There are several issued brewing here:

One --- the $25 required fee which is of no benefit to me --- directly.

Two ---

I was told I had to complete the application online in order to get the special rate. Somehow, it turned into 2 separate applications... both of which they processed!

Three --- they led me to believe I would have no issue qualifying for a loan of $6K for a car worth $18K and a credit score of 782.

Four --- they declined the loan saying my debt ratio was too high at 38% [with a six figure income] but they refused to provide the figure by which they use as a guideline siting they were "within the law not disclosing" it.

Although it is the FEDERAL government, I don't get how it is LEGAL or ETHICAL lending practices to ENTICE new members without disclosing all details of the advertised rate and requiring the payment into a special fund. Do the calculation yourself... There are 3 million plus people within earshot of the radio ad and if each of those applied to become a NEW MEMBER with Pen Fed, they automatically receive ... are you ready for this??? $75 MILLION DOLLARS!!!! Just for becoming a member!!

Ill just stick to Apple Federal Credit Union where they have fair and disclosed lending practices.

Everything is automated, event the damn workers !! Horrible service- still waiting to close on this!! 90 days later, I could have bought a house quicker than this. What horrible service. Will not deal with Penfed again. Tried to speak with managers or cust. svc--they don't even care. They transfer you to the person's voicemail that you had the problem with in the beginning. WOW !! I guess that should explain a lot, given it is a "FEDERAL" credit union !!