Consumer complaint received 2026-05-19 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: PENTAGON FEDERAL CREDIT UNION
State: ME

Complaint narrative:
I am submitting this complaint regarding my experience with Pentagon Federal Credit Union involving a certificate-secured loan, delayed disclosures, inconsistent information, and delayed access to my own funds. I have approximately {$190000.00} in certificates of deposit with PenFed and have generally considered the institution trustworthy until this experience. Timeline of Events On Monday, XX/XX/year>, I contacted PenFed to close one of my certificates of deposit. I was informed the funds would be returned to my savings account by Wednesday. When the funds did not appear, I called again and was told that because the CD had been funded via ACH, it could not be closed for 60 days. This restriction had not previously been disclosed to me. During that call, PenFed representatives suggested an alternative solution : a certificate-secured loan using my CD as collateral so I could access approximately {$20000.00} without incurring an early withdrawal penalty. I agreed over the phone. However, after agreeing to the loan : * The loan was funded and proceeds deposited into my savings account before I received any loan documentation. * I did not receive or sign a promissory note prior to funding. * I did not receive Truth in Lending disclosures prior to funding. * I did not receive repayment terms, payment schedule, or security agreement before the loan was completed. * No electronic signature process was completed to my knowledge. On XX/XX/year>, after multiple calls and continued confusion regarding my ability to access funds, I submitted a formal complaint directly to PenFeds Audit/Supervisory department . After filing the complaint, I received multiple automated case confirmations but no substantive response from PenFed. The most concerning issue is that the disclosure packet I eventually received was postmarked XX/XX/year> several days after the loan had already been funded and after my complaint had already been submitted. The documents I received reflected a loan date of XX/XX/year>, yet signature lines appeared blank/unsigned when received. Additionally, my husband is a joint owner on the CD used as collateral, though he is not a borrower on the loan. I have concerns regarding whether proper authorization and disclosures were handled appropriately concerning jointly owned collateral. Throughout this process, I received conflicting information from representatives regarding : * CD closure eligibility, * timing of wire transfers, * loan documentation, * and when funds would become available. One representative stated a wire would take 12 hours, while another later stated 424 hours was standard. Overall, I spent several days attempting to gain access to my own funds while receiving inconsistent information. I want to note that every PenFed employee I personally spoke with was polite and professional. My complaint concerns the institutions processes, disclosure timing, compliance handling, and communication failures not the demeanor of individual employees. I am attaching documents I received only after submitting the complaint to PenFed directly in XX/XX/year>. XXXX XX/XX/year>

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 monetary relief