Consumer complaint received 2016-05-17
Company: PENTAGON FEDERAL CREDIT UNION
State: MA
Product: Consumer Loan
Sub-product: Vehicle loan
Issue: Managing the loan or lease

Complaint:
Pentagon Federal Credit Union ( PenFed ), a creditor named in my XXXX XXXX Bankruptcy petition on XXXX ( secured by car title ), is reporting inaccurate information to the national credit bureaus. In doing so, PenFed is violating the U.S. Bankruptcy Act, and 7-year reporting limit of the Fair Credit Reporting Act by willfully misrepresenting facts, refusing to correct errors, and using the credit bureau reports as a collection tactic in a manner that is contrary to these regulatory statutes. 

Pentagon Federal Credit Union Acct. # 1 : The last payment made on this account was prior to filing bankruptcy in XXXX XXXX, when the account was also closed. However, the initial date of delinquency was in XXXX. While I have no knowledge of any activity on the account after XXXX XXXX, PenFed has reported a " last payment date '' in XXXX XXXX. 
My XXXX XXXX and XXXX XXXX XXXX reports show an estimated removal date of XXXX XXXX ; then the XXXX XXXX XXXX report shows an estimated removal of XXXX XXXX ; but XXXX is now telling me this derogatory account will remain on record until XXXX XXXX. Again, my last activity on this account was in XXXX XXXX. 
I have contacted PenFed, XXXX, and XXXX regarding this mysterious " last payment date '' but none will correct the date or remove the account. In a conversation on XXXX XXXX, XXXX with XXXX XXXX XXXX, a supervisor at the XXXX U.S. Consumer Relations Center, XXXX XXXX said his company would not remove this derogatory account until XXXX XXXX because PenFed has reported XXXX XXXX as the " last payment date ''. This confirmed in a subsequent call with XXXX XXXX XXXX at XXXX Consumer Relations ' on XXXX XXXX, XXXX. 
The Fair Credit Reporting Act requires derogatory accounts be removed 7 years from the initial late payment date, which preceded XXXX XXXX. The fictitious " last payment date '' of XXXX XXXX that PenFed arbitrarily created and refuses to remove has extended the length of this record to almost 9 years. 

Pentagon Federal Credit Union Acct. # 2 : A reaffirmation agreement was signed during the pending bankruptcy for the above described car loan, with a first payment date of XXXX XXXX, XXXX. Although I made multiple calls to PenFed requesting an account number and billing statement for the new loan, I was always told it was in process of being set-up. Without an account number or bill, no payments were made. 
In XXXX XXXX, PenFed sent the title to the car ( securitizing the loan ), along with a letter stating the account was paid in full and closed. The reaffirmation agreement was subsequently cancelled ( rescinded ) by notice to the court and creditor, and accepted by the court XXXX years before the bankruptcy was discharged. 
Many years later, I saw that PenFed had reported to the credit bureaus that a secured account was opened in XXXX XXXX, with an initial timely payment made followed by 2 consecutive months of delinquencies, and no other entries. PenFed is now reporting to the credit bureaus that the account remains open with an outstanding balance of {$10000.00}. 
This account should be removed from the credit bureaus because I had no knowledge of the account 's existence or activities ; the reaffirmation agreement was rescinded in proceedings of the U.S. Bankruptcy court in a timely and legal manner ; and the attached letter from PenFed shows the loan was Paid in Full and closed, with the underlying security interest ( lien on title to car ) released to me. 

Note : the account number shown on PenFed 's letter is my credit union member number, and account numbers on the credit reports are suffices thereof.

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