Consumer complaint received 2021-07-25
Company: PENTAGON FEDERAL CREDIT UNION
State: MD
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
I currently have a used vehicle loan with Pentagon Federal Credit Union ( PFCU ). My family and I PCSed to XXXX XXXX, XXXX on XX/XX/XXXX with the US State Department and shipped the vehicle on XX/XX/XXXX. Prior to shipping the vehicle I requested permission from PFCU to ship the vehicle, which was granted. At no time did PFCU specify that additional insurance was required while the vehicle was in shipping or subsequent secure storage.

I returned to the US in early XXXX for the delivery of our daughter and remained stateside until XX/XX/XXXX. While I was stateside PFCU sent notice via US mail to my PCS address that the vehicle did not have the proper insurance and that I would be charged if the issue was not resolved. I did not receive these notices as I was not at my permanent address. I also note that I did not receive any telephone or email communication from PFCU. I purchased an XXXX insurance policy on XXXX XXXX, XXXX. This was my first opportunity to do so as my family and I were in quarantine for 14 days upon our return from the US.

After going through several months of mail I noticed Penfeds demand for updated insurance information. On XX/XX/XXXX I submitted my policy information to XXXX third-party verification company MyInsuranceInfo.com and was told the issue should be resolved within 3 days. However, in early XXXX I noticed an additional {$2000.00} charge added to my loan for supplemental insurance. I reached out to PFCU in an attempt to resolve the issue by resubmitting the insurance policy and informing them that the vehicle was in shipment and storage. Their first reply was to deny my insurance on technicalities associated with XXXX insurance policies. After much back and forth, they eventually accepted the policy as valid. 

The next reply was that the vehicle was uninsured from XXXX until XXXX while it was in shipping and secure storage which also is false as it was covered under the shippers insurance policy and was subsequently in secure storage on the US Embassy XXXX XXXX compound until I was able to have it registered and finally drive it home in around XX/XX/XXXX. 

I have submitted proof of insurance and proof of shipping. There appears to be no disagreement that the XXXX insurance police I have is valid, yet the vehicle still has a supplemental insurance policy through XX/XX/XXXX attached to it that PFCU so far refuses to withdraw. At this point it appears to be purely predatory and I have received no substantial information from PFCU as to why there is still an insurance policy or a definite answer on how to have the policy removed, just vague requests for additional information. I request additional assistance to have this issue resolved as PFCU has been less than helpful and I should not be responsible for a {$2000.00} supplemental policy on top of the policy I already carry.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief