Consumer complaint received 2019-01-11
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 an auto loan was charged off the Pentagon Federal Credit Union in the amount of {$7100.00}. In XX/XX/XXXX, I filed for ChapterXXXX bankruptcy and this amount should have been included. Not to mention, after filing for Chapter XXXX  bankruptcy again in XX/XX/XXXX, this amount 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 charged for the past 21 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 - I am limited with funds to pay debtors. I was unable to open a checking account, obtain a debit card, and the like due to this charge-off.

The PenFed Credit Union is offering assistance for members who have been with the credit union for at least 12 months. I was told by PenFed that I could obtain Direct Deposit Assistance. Meaning, if I was an existing member with PenFed and have an existing direct deposit into a PenFed deposit account, I could qualify for their Direct Deposit Assistance program. This program allows me during the government shutdown to take advantage of a 0 % advance on an overdraft line of credit in the amount of your most recent direct deposit from a qualifying government agency, up to {$6000.00}. For qualifying members with an existing overdraft line of credit will be increased by the amount of the direct deposit to accommodate the advance. For members without an overdraft line of credit such as myself, who otherwise qualify, an overdraft line of credit would be opened for me to accommodate the advance, and NO CREDIT CHECK is required for qualifying members.

I was told I didn't qualify because of the charge-off still on the account from XX/XX/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.

I was told to contact a XXXX XXXX at the Credit Union, which I believe is a bogus name.

This is false advertisement and acts of insensitivity during my times of hardship. I have {$1000.00} going to the credit union monthly. I was beginning to save funds, but in late XX/XX/XXXX I had two family members : ( 1 ) one who is now deceased ; and ( 2 ) another who has experienced severe health issues where I had to assist with other family members in burial costs and other expenses.

I called in to ask questions, the representative on the phone didn't even offer me the opportunity to apply per their process.

This is wrong. I meet the criteria for a Direct Deposit Assistance, especially since no credit checks are involved.

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