Consumer complaint received 2020-03-28
Company: PENTAGON FEDERAL CREDIT UNION
State: VA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Problem with rewards from credit card

Complaint:
This is the letter sent to the Board of Directors concerning the issues -- it contains all the dates, etc -- and the response from the credit union -- I  was working with my father ( a veteran ) to help me with this issue : Board of Directors, Sending this email upon recommendation of XXXX ( employee number XXXX -- no last name given ) concerning an issue of points associated with a credit card. My daughter ( XXXX ) XXXX and I had a joint account while she also had a PENFED Platinum Rewards Credit Card ( last four XXXX ). Due to a job loss caused by an auto accident and a desire to support XXXX XXXX she volunteers in XXXX supporting multiple XXXX 's. When she got back in late XX/XX/XXXX we sat down to catch up on medical issues and finances. 

Upon investigation we found that she was delinquent on her PENFED credit card and on XXXX XX/XX/XXXX we contacted PENFED to make good on the payment from my father 's money market account XXXX in the amount of {$5700.00} which includes all late fees and interest expenses -- we also requested to redeem the points ( XXXX ) which the representative agreed and once the {$5700.00} transaction was complete we were sent to the point processing center where we were apprised that we would receive two gift cards in the amount of {$500.00} and {$250.00} ( excellent source to pay some of her medical bills ) -- we should expect to see them within a week or so and if not contact the confirmation number given ( XXXX which I don't believe is part of PENFED ). 

Never heard from PENFED so called the XXXX number on XXXX XX/XX/XXXX and was apprised the card was closed and points eliminated. Called PENFED and asked to speak to a supervisor and spoke with XXXX ( no last name given but is resident in Nebraska ) who looked in the call record and said she would have to review the call and offered to call back. About an hour later XXXX called back and said I was correct, that a redemption of points was agreed upon and that she would bump the issue up to another supervisor and would hear back on Monday XXXX XX/XX/XXXX -- told her that was XXXX XXXX  but she said they were working. Heard nothing and finally got a message from the XXXX number and was told the card was locked -- asked to speak to a supervisor but they claimed they were not a PENFED organization and that I would have to call PENFED. 

On XXXX XX/XX/XXXX I called PENFED and was able to talk to XXXX again -- told her I never received a call on Monday XXXX XX/XX/XXXX ( she claims she left a voice mail but I have no such record ) and asked what happened. She explained that her supervisor and then the Director of Delinquency reviewed the issue and denied it. I then asked to speak to XXXX 's supervisor and spoke to XXXX at length. She said she never listened to the phone call of XXXX XX/XX/XXXX but admitted I was given " wrong '' information, they weren't going to reactivate the card and I had no other options. Asked to speak to the Director of Delinquent Accounts ( XXXX, XXXX ) but he wasn't in and XXXX said it was his decision although he didn't listen to the call of XXXX XX/XX/XXXX either. Asked for a copy of the phone transcripts or audio files and said they would only be released with a subpoena. Finally asked what my options were and XXXX basically said nothing and then requested the number to the President or CEO and was given this email to write. 

I have been a member since about XXXX and this is about the worst service I have received with any business I have had a long term relationship. Every loan was paid ahead of schedule and lots of funds invested in CDs providing a small measure of liquidity for other PENFED loans. It is not only the lack of responses or XXXX 's condescending attitude it is the " in your face '' we ( PENFED ) know we made a mistake but will not even consider to rectify and there is nothing you can do about it. My daughter made a mistake and, good to our word, we fully repaid every cent PENFED was owed -- is PENFED going to be good to their word? I await your investigation and response. 

Chairman Response : Dear Ms. XXXX, I received the email below from your father, XXXX XXXX, regarding your PenFed Visa. We do not show him as joint on your Visa, and are providing this response to you only. 



I am sorry to hear of your accident and job loss. I am aware you were out of the country for a portion of XXXX supporting XXXX. I admire your dedication and volunteerism. 



Monthly payments were still required on your Visa during this time. When we did not receive a payment, your Visa became significantly past due and we closed it to further use on XX/XX/XXXX. Per the Program Rules, Terms and Conditions for your Visa, If you close your Account or if we close it because you default on your Agreement, your Points will expire immediately. 



I understand Mr. XXXX spoke with us to pay off your Visa after it was closed, and we advised the points would still be available for use. I apologize for this misinformation. However, the points did not expire because of the misinformation. They had expired when the account was closed due to being delinquent, and we are unable to reinstate them. 



I recognize it is disappointing to lose the points and this is not the outcome you were hoping for. I wish you the best in your future banking experiences. 



Sincerely, XXXX XXXX XXXX Chairman of the Board of Directors XXXX  XXXX, XXXX, VA XXXX PenFed.org

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