Consumer complaint received 2021-04-01
Company: PENTAGON FEDERAL CREDIT UNION
State: MD
Product: Checking or savings account
Sub-product: Checking account
Issue: Opening an account
Sub-issue: Unable to open an account

Complaint:
In XXXX of XXXX, I attempted to open a checking account with Pentagon Federal Credit Union ; of which I have been a member for at least 13 years. When trying to open the account online, I received an error message of " We can not establish your account at this time. Please contact us for additional information and assistance. '' I then called Penfed to find out the issue and they informed me over a month and a half later that I had a charged-off account from XXXX for {$360.00} that stemmed from a " bounced check '' that was written to me and deposited from a former employer of mine back in XXXX. I vaguely remembered the situation and informed them that I would pay whatever amount needed to be paid to settle the debt and be in right standing. They informed me that I would be in right-standing with the Penfed the moment I paid the debt and I told them to take the money out of my savings account asap. 

Several days later, the money was removed from my account to pay the debt and I attempted to open the checking account ; the same error message appeared. I then called the representative that instructed me to call her back if I had any issues ; by the name of " XXXX. '' I told her that I still couldn't open the account and had me hold as she did more research ; still nothing and told me the individual by the name of " XXXX '' was on leave and wouldn't be back until Monday ; I was told to call back then. When calling back, I received another representative ; which I explained the situation to. He asked me to hold and he would do research. When he returned, he informed me that although the {$360.00} was paid, there was an additional {$96.00} that needed to be taken care of for " interest. '' I said, " that's not what I was told but fine, can we just pay it so I can be in good standing and open up my account? '' He said sure, attempted to pay it, and couldn't due to the restrictive nature of the account. He said he needed to email " XXXX '' and he would have to move the money from my savings and fully pay the debt. I further asked, " why wasn't this disclosed when we spoke about the initial debt of {$360.00}? '' He said this was interested and maybe the other representative didn't see it or know anything about it ; even though both asked the same individual named " XXXX. '' Nonetheless ; I was again told that when the debt is paid, the restriction would be lifted and I would be able to open up my checking account, apply for credit cards/loans etc. I never understood why I was being denied credit cards and loans for 7 years until I inquired about this debt ; they were automatically denied due to the restriction on my account per the representative. 

Fast forward to today, XX/XX/XXXX ; I called yet again after no return calls for several days and inquired about that debt. Now I'm being told the interest from XXXX went from {$96.00} to {$110.00} and there is no guarantee that I will be in right-standing, even if I pay it. This is totally contrary to what I was told when I called the other almost 2 dozen times over the last several months. Nonetheless, I paid the {$110.00} because I was told I owed it but I feel very discriminated again, devalued, and disappointed as a veteran, a business owner, and an XXXX American male by this establishment. I have gotten the run around for several months for a debt that I approached Penfed about, not the other way around. I have applied for loans, credit cards, etc, and was NEVER told about this debt being the reason that I was automatically denied. 

It was not until today ; after I told the representative that I wanted to close my account and will report this Credit Union to the CFPB, the XXXX and the XXXX, and that I want to close my account that they took the {$110.00} within 10 mins. Interesting! I will be filing a complaint with the other said organizations and possibly filing a lawsuit against them for discrimination.

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 non-monetary relief