Consumer complaint received 2016-07-20
Company: PENTAGON FEDERAL CREDIT UNION
State: VA
Product: Debt collection
Sub-product: Mortgage
Issue: Cont'd attempts collect debt not owed
Sub-issue: Debt was paid

Complaint:
I had a home equity line of credit with XXXX XXXX XXXX XXXX. I did a short sale on my primary residence and XXXX agreed to a settlement for the equity line of credit. I believe the balance was approximately {$35000.00} but they agreed to a payment of {$8000.00} from XXXX XXXX XXXX, the lender for the residence and {$15000.00} from me. This was paid in XXXX of XXXX when I went to closing. Attached is paperwork that shows this was satisfied and I was released from this debt. I closed all accounts with XXXX XXXX XXXX. 

Three years later Pentagon Federal Credit Union purchased XXXX XXXX XXXX in XXXX of XXXX. Some how the home equity loan that was closed in XXXX of XXXX was picked up by Pentagon Federal Credit Union ( PenFed ). I received a bill from them requesting payment of {$58000.00}. When I first called PenFed I was told they could not do anything until after XXXX XXXX because even though I had received a bill, they could not see my information. I called back after XXXX XXXX and apprised them of the situation. I was told that I basically owed the debt and had to prove that I did not. I was told they could not call XXXX XXXX XXXX or research it from their end. The ownness was on me to prove otherwise. I told them I noticed my credit score dropped XXXX points, but again was told the ownness was on me. I was hung up on, placed on hold for extensive periods, told I could not speak with the department that handled it directly, and supposedly transferred to managers who said they could not help me that I needed to send in the information. 

After paying {$39.00} on XXXX/XXXX/XXXX, I find that now both XXXX XXXX XXXX and PenFed are reporting this exact issue to the credit bureau. XXXX XXXX XXXX shows it has legally paid in full for less than the full balance while PenFed shows the same debt as a charge-off. 

Also XXXX is showing this as a serious delinquency on my credit report. I do know there is XXXX report from XXXX XXXX XXXX and XXXX report from XXXX ; now a delinquent report from PenFed has been added. 

In spite of my efforts to advise PenFed that this account never should have transferred to them and even after showing proof that this was settled in XXXX their resolution was to show it as a charge-off. THE SAME DEBT IS BEING REPORTED TWICE. 

Since XXXX I have worked very hard to improve my credit. Even paying Credit Repair over {$500.00} to intervene on my behalf. Their efforts did increase my score, but PenFed counteracted what had been done. 

I am requesting not only that they remove all traces of PenFed from all credit bureaus, but they also be made to pay loss and punitive damages in the amount of {$50000.00}. I purchased a home and the effect it could have had on my mortgage rate is unknown considering I have a 30 year loan. There was indeed an inquiry from the mortgage company on XXXX XXXX, XXXX ( Credit Plus ). Evidence of this too is attached. Also after being invited to apply for a loan with XXXX, I was denied that loan. This happened the first week of XXXX XXXX. I also have been denied credit on at least XXXX other occasions. This has had a negative and profound effect on my credit and I believe this to be just and fair. A report was filed with XXXX but the conclusion was for my credit to drop additional points while PenFed said the matter had been taken care of. It has not. XXXX debt is still being reported by XXXX different banks -- XXXX XXXX XXXX and PenFed. Every time inquiry is made with PenFed, my credit score drops. The last inquiry by XXXX with PenFed was concluded XXXX XXXX, XXXX and my score went from XXXX to XXXX.

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