Consumer complaint received 2015-07-26
Company: PENTAGON FEDERAL CREDIT UNION
State: NE
Product: Credit card
Issue: Other

Complaint:
I have been working with Pentagon Federal Credit Union ( PenFed ) since XX/XX/XXXX regarding an issue with my Platinum Rewards Credit Card point redemption. 


I redeemed points from the PenFed Platinum Rewards Visa for a {$500.00} Visa gift card, XX/XX/XXXX. XX/XX/XXXX, I called to request a replacement card, as the gift card had expired, but there was still an available balance of {$500.00}. I called the customer service number provided with the letter and disclosures with the gift card. They stated they were no longer affiliated with PenFed. I then contacted PenFed 's Member Service Line. The Member Service Representative placed me on a brief hold to inquire on how to reissue the replacement gift card. When she came back, she stated the gift card could not be replaced and the disclosures with the card stated that information as well. 


Attached are the paper disclosures provided with the gift card, along with a supplement provided in the gift card envelope. I am unable to find wording that states the gift card balance is forfeited if not used prior to the expiration date. In fact, the fee schedule listed indicates the card is subject to a monthly account maintenance fee AFTER the 12 month anniversary date. The schedule of fees also lists the fee for a replacement plastic and indicates the monthly account maintenance fee will be waived if there are charges made to the account within the past 3 months. 


PenFed has indicated the following was displayed on the redemption rewards website at the time the gift card was requested : " Visa prepaid cards can be used anywhere Visa is accepted. Cards expire 13 months after the date issued and unused funds will be forfeited after the card expires. An inactivity fee of {$3.00} will be deducted from the balance of the card in month 13 if the card has been dormant for 12 months. Cards are not reloadable. Cards will be embossed with name as provided with shipping information. " This statement was not provided with the paper disclosure and nor on the supplement provided with the gift card. I am unable to locate this verbiage on the current rewards website, nor am I able to recreate the disclosure while going through the steps to redeem another gift card. Attached are the current terms and conditions of the gift card reward, along with screen shots from the current rewards site. 

Again, there is no indication the gift card balance is forfeited upon expiration date. These terms and conditions, along with the disclosures provided in hard copy with the gift card, are conflicting. These disclosures along with the fee schedule are confusing and misleading. The limitations of the gift card are not clear and transparent to the consumer. 


PenFed has declined to replace the gift card, minus appropriate fees from the fee schedule. They did offer to provide a XXXX point credit to my rewards balance as a courtesy. This would be the equivalent of a {$50.00} gift card, minus the {$6.00} replacement fee. This would be a loss of {$450.00} to the consumer based on the very important detail of not being able to replace the card, due to expiration date, which was not stated on the disclosures enclosed with the gift card. 


Since the expiration date limitation of the gift card was not stated on the disclosures, nor stated on the PenFed reward site, I am requesting my reward points be fully replenished for a redemption value of a {$500.00} Visa Gift card minus any applicable fees as indicated in the disclosed fee schedule.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation