Consumer complaint received 2022-11-02
Company: PENTAGON FEDERAL CREDIT UNION
State: OR
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
I opened an " XXXX XXXX '' checking account with Pentagon Federal Credit Union ( " Penfed '' ) on or about XX/XX/2022. During the online account-opening process, Penfed 's website offered me an opportunity to download a completed copy of the application -- I clicked on the appropriate link but received an error message. I promptly called Penfed to request a completed copy of the application, but none was ever sent. 

This complaint involves Penfed 's deceptive advertising concerning the accrual of interest on the XXXX XXXX checking account. In numerous locations, including in the governing account agreement, Penfed states that customers " receiving direct deposits of {$500.00} or more per month '' will earn interest on the XXXX XXXX account. On XX/XX/2022, after months of receiving over {$500.00} in direct deposits, but not receiving any interest on the account, I called Penfed and was told that I was ineligible for interest on the account because my direct deposits have been into a savings account instead of the checking account. The savings account that receives the direct deposits is under my name and SSN, and appears on the same monthly statement ( and in the same online account ) as the XXXX XXXX checking account. 

Specific examples of Penfed 's misleading advertising include : 1. The " banner '' on the main webpage for the XXXX XXXX account ( https : //www.penfed.org/checking/access-america ) states " Earn up to 8X the national average on your checking account balance with monthly direct deposits of {$500.00} or more. '' Nowhere does the banner specify that the direct deposit must be made to a specific account. ( see attached screenshot ). 
2. The footnote disclosures on the above-referenced webpage do not indicate that the required {$500.00} direct deposit must be made to a specific account ( see attached screenshot ).

3. Most tellingly, the account disclosures that Penfed mailed to me state that " XXXX XXXX Checking account holder can earn dividends with aggregate direct deposits of {$500.00} or more in a statement cycle. '' ( see attached copy ). In notable contrast, the section of the disclosure addressing minimum balance requirements states that " If the direct deposit requirement is not met, a minimum daily balance of {$500.00} must be maintained *in the account* to avoid the monthly service fee '' ( emphasis added ). This language clearly shows that Penfed is able to specify when certain requirements relate to certain accounts, but it chose not to do so with respect to the interest-eligibility provision. 

None of Penfed 's documentation requires the direct deposits to go to the checking account, and a reasonable consumer would not understand this requirement. At best, Penfed 's account agreement is patently ambiguous, and the ambiguity should be resolved against the drafter. In spite of Penfed 's poor drafting, the credit union refused to credit my account for the interest I should have earned from the date of opening.

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