Consumer complaint received 2023-01-23
Company: PENTAGON FEDERAL CREDIT UNION
State: VA
Product: Debt collection
Sub-product: Auto debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was already discharged in bankruptcy and is no longer owed

Complaint:
In XX/XX/XXXX ( nearly 27 years ago ) an auto loan was charged off the Pentagon Federal Credit Union in the amount of {$7100.00}. In XXXX, I filed for XXXX bankruptcy and this amount was included ; yet XXXX continues to hold me XXXX for this transaction. I also filed for XXXX  XXXX bankruptcy again in XXXX, this amount was already dismissed in XXXX and should have long been removed from my credit records, which it has - yet XXXX continues to hold an internal process within their financial institution which has caused harm to my credit reports, my credit inquiries and the like. 
It goes without saying by law this financial institution should be sued as well as held accountable for their financial practices toward their customers- in this case, myself. This entry should again have been removed from my records at the PenFed Credit Union. It is evident this charge-off that has stayed on my credit has undoubtedly had a severe impact on the type of credit I receive and the interest rate I am charged for the past 27 years. I kept this account open despite of the charge-off. Each time I go into the bank to withdraw my own funds, the tellers have to obtain an override- this is embarrassing. To add insult to injury, I am a XXXX  employee - XXXX  will not issue me a debit card, a checking account or allow me to move funds to external accounts because of this XXXX matter. During a government shutdown in XXXX - I went through this same situation with XXXX. I then wrote a complaint to your offices ( XXXX ) and XXXX  funds to pay debtors ( see enclosed ). As a member of XXXX, I have been unable to open a checking account, conduct external transfers to my other accounts, obtain a debit card, HELOCs, Mortgage Refinance, Personal Loans and the like due to this charge-off. I was told I don't qualify because of the charge-off still on the account from XXXX. The representative on the line indicated that even though I filed for bankruptcy, they still have the right to keep the charge-off on the account until they are able to collect the {$7100.00}. This is clearly a violation of bankruptcy laws and discrimination. Today, XX/XX/XXXX - I encountered the same thing - so I decided to do a wire transfer in the amount of {$20000.00} to another one of my accounts- and I was told, I am not able to perform this transaction due to the XXXX charge-off. I believe XXXX has since placed a hold on all monies in the account ; I stopped all financial allotments to this account on XX/XX/XXXX. I had {$1400.00} going to the credit union monthly in a saving account. The business/financial practices at XXXX are unlawful and warrants a civil lawsuit. The CFPB should have addressed this issue back in XXXX, because here I am 4 years later addressing the same issue.

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 explanation