About Pentagon Federal Credit Union Auto Loans
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I refinanced my car for a great interest rate. Was awesome at first until they needed a form to list them as lienholder on the title! I received a request in December 2021 which we sent in within a few days in the enclosed envelope. 3 weeks later I get a letter saying they did not receive paperwork. I called PenFed and the rep I spoke to assured me all was ok because information had been received! I got another letter requesting forms late January 2022. I fired off a letter to Pen fed explaining I had sent back forms and a rep said they received them! That was about a week ago. Now I receive a letter since they have NOT received the forms they are jacking interest rate 10 points to 14%!!!
I have no reason not to fill out forms as requested! I called tonight and spent about 45 minutes with another rep. She said she will put in a request for new forms and a request to lower my rate back to 4% I also found out the company handling their title work is a third party company! I asked if I could just send forms to Pen Fed directly and she said no. So I am hoping Pen Fed will set original rate once they receive paperwork!
They will lured to the application process only to find it is misleading advertisement. Stay away from this company. Customer service OK, not the greatest experience. Do not let them pull your credit.
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I took out an auto loan with them, paid the loan off in a few months and they refused to refund $450 for GAP insurance. The insurance was not used or needed and they are stealing money from me. I have work in the automotive business for 30 years and never had a company refuse to refund a product that was not used.
Pretty much the worst financial institution I have dealt with. I am just waiting for the insurance charge on my loan to be removed so that I can close my account and move my car note somewhere else. Quite a number of confused individuals from the loan dept to the insurance department. I refinanced my truck that had been parked for over a year. The insurance had expired. They added $5757 to my loan for insurance. I told them to take it off and that I would add the truck to my insurance. They asked for proof of that and told me it was going to take 48 to 72 hours to get the charge off my insurance. After over 72 hours, and after verifying that I had insurance, they said it was going to take 10 business days to get the charge off. I had a buyer for the truck but now I have lost several potential buyers because of this. Too many inconsistent interpretations of their policies. Terribly disappointed.
I was approved for a car loan at a good rate easily over the phone, then after 2 days and +10hrs on the phone and paying $25 for FedEx overnight shipping of the check I was told I would still not receive the check until 5 days after I had actually been approved for the loan. If you don’t enjoy the pain of waiting on hold for hours and repeating what you need every time and especially if you need to secure financing in a transparent and timely fashion in a very competitive car or house market I would recommend taking your business elsewhere.
Pen Fed was recommended for auto refinancing due to their great rates. Was required to open an account with them first before applying for the auto refinance. I went online and tried opening a savings account and after submitting my info with social security number, it then had me submit a photo ID, proof of Social security number and address verification. Then it said someone would contact me after the info was reviewed. Also received an email that said someone will review the info and reach out to me within 3-5 business days. I called penfed a few days after to get the status of the application and the first rep could not locate any of my info. Finally after searching, said it was with the fraud dept. and they would contact me.
A few more days went by and I called again. 2nd lady could not locate any of my info. I called the following day after and the 3rd lady could not locate any of my info. They kept asking if I got an email with a confirmation number and I said no, only that my info was received and I would be contacted. Then contacted them by Facebook messenger and they said my info was located, but it would take 1-2 weeks before it was reviewed. If it takes this long just to open an account, I can only imagine how long it will take just to do an auto refinance with them. Not sure if I will even continue to try and open this account. After submitting my personal info and nobody even being able to locate it makes me suspicious of giving them any other personal info.
One of the supervisors (Name: Candace) was able to resolve my issue finally. I do see the additional interest now being applied to my principal balance.
I refinanced my car loan with Penfed in July 2019. I started making payments immediately and everything seemed fine. In January of 2020, I receive a letter from penfed that my interest rate has been increased to a higher value as they have not received the Title work. The title work fixing took a month (Dealer issue) and after 3 months my rate was moved back to the original rate. I was assured that the extra interest that I paid during that time would be applied to the principal balance. Fast-forward to Aug '21, I did a calculation of the interest paid and it turns out I have already paid $500 more interest compared to what I should have paid over the life of the loan. After calling the customer service, I get a response that they are doing the research and it is just not going anywhere. I have a feeling of money being stolen right out of my pocket. I'm so frustrated working with penfed. I hope no one has to go through this pain.
My HELOC application was turned down on my Primary Residence although, it was only to increase my current PENFED HELOC an additional $30k to make home improvements. I was turned down because I had a COVID Forbearance on another investment property because my tenant was evicted. The Forbearance was turned into a modification/refinance and had nothing to do with my Primary Residence or my current HELOC. My Primary, both HELOCs all paid on time, I have a 830+ credit score, $0 unsecured credit and high income and PENFED turned me down because they state they have a blanket policy. Any Forbearance regardless will disqualify you for 12 months. That's very discriminatory!!
Retired military officer and disabled veteran disappointed to say the least. I had a horrible experience. I've had multiple auto loans with this company over many years and never experienced anything so absurd. I obtained an auto loan in Dec 2021 for a truck to use commercially. Initially, I purchased the truck and maintained it for personal use and USAA Insurance explained the vehicle would be covered for 30 days of my existing policy to full coverage as on my other insurance vehicle. At the end of the 30 days I was ready to insure and register for commercial use. I then obtained a commercial insurance policy. I received a letter from Penfed later in Jan 2021 telling me they needed the insurance to reflect Penfed as the lienholder. I had the insurance agent modify to reflect and sent to Penfed. They billed me $6400 and added it to my loan without prior notification in a very aggressive manner clearly to give business to a third party.
I disputed and they agreed that I had the insurance and what they needed but wouldn't refund $800 as they said I didn't have insurance with the carrier in Dec 2020. I said, that's correct, I had insurance with USAA whom I've had for over 30 years at that time as the truck was personal conveyance during that first month. They now say I have to prove that...how ridiculous can this get. No issues and they're billing me for a period of time that has come and gone and I had insurance. I'm wondering with the aggressive manner of this transaction so fast how many other Penfed members have had this happen to them? I've never experienced this with any other loan from Penfed nor another banking entity. The loan process was normal as with previous auto loans with the credit union. However, I've never had an issue with insurance on any loan and appears they are aggressively giving business to a third party for financial gain.
I filed a complaint with the Consumer Financial Protection Bureau as I have concerns about the aggressive nature of these transactions and if not illegal I'd say ethically questionable especially with disabled veterans and retired military families they claim to serve with pride. I'm beyond disappointed and will not do future business with Penfed...ever.
I am AAA member for many years. Got AAA email saying 2.14% APR auto loan with PenFed. I was ready to buy car within a week and PenFed rate was very attractive. Good ends here!!! I was very clear upfront that I am looking to pre qualify so I can shop for my dream car with peace. I told rep I did not have VIN # and looking only to prequalify. I was told that should be fine but they must do ‘hard credit inquiry’!! I have top tier credit score and guard it with life- don’t let anyone run hard query on my credit unless I am ready to business. Soft query provides all the info lender needs for prequalification! I was told it is a must. I trust AAA so reluctantly agreed to hard pull.
I was told I had exceptional score and absolutely no reason to get ANY amount (was looking for 60k)! Then rep checks with loan officer and says they cant do anything now and I must first purchase the car, fax them PO signed by dealership and myself. They will then approve the loan and send me a check in the mail within 7 days!!! Wow! I said, "Why would you run hard pull and impact my credit if you could not give pre qual letter?"
Also dealer is not going to wait for 7 days for PenFed to ship the check then I deposit the check (T + 3) and issue my check to the dealership!! I was shocked to hear this and wonder how can it work for ANYONE purchasing new/used car? Maybe it is ok for refinancing existing loan! Please beware of their legacy process for purchasing new / used car in 21st century! If it works for you, go for it else don't waste time. My review is only for the process and not the polite people at PenFed.
Pentagon Federal Credit Union Auto Loans author review by Emma Simon
Founded in 1935, Pentagon Federal Credit Union (PenFed) is an American financial institution that operates in all fifty states and some international military bases. Along with other financial services, PenFed members can apply for new and used auto loans, auto refinancing, auto buying service, and Payment Saver loans for new and used vehicles.
New auto loans: PenFed offers up to 110 percent financing and terms from 36 to 84 months ranging from 1.49 to 3.49 percent APR.
Used auto loans: You can get up to 110 percent financing with terms from 36 and 72 months and APR ranging from 1.99 to 3.91 percent.
Auto refinancing: You can refinance a new or used auto loan with terms up to 72 months and loan amounts up to $100,000.
Payment saver loans: Payment Saver loans allow you to pay lower monthly payments on your new or used vehicle, and then make a final balloon payment at the end of the loan term. You can choose from a 24 to 60 month term with rates from 1.74 to 3.24 percent.
PenFed buying service: As a member you can receive discounts on select vehicles financed through PenFed. You must be a member for at least 60 days prior to applying.
Pentagon Federal Credit Union Auto Loans Company Information
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- Pentagon Federal Credit Union Auto Loans
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