Consumer complaint received 2025-03-31 00:00:00
Product: Checking or savings account — Savings account
Issue: Problem caused by your funds being low — Non-sufficient funds and associated fees
Company: PENTAGON FEDERAL CREDIT UNION
State: NC

Complaint narrative:
Subject : Complaint Against Pentagon Federal Credit Union ( PenFed ) for Account Restriction and Financial Hardship To Whom It May Concern, I am filing this complaint against Pentagon Federal Credit Union ( PenFed ) due to an unjustified restriction on my account that caused significant financial hardship, embarrassment, and inconvenience. Despite my attempts to resolve the issue, PenFed has failed to acknowledge their responsibility or provide fair compensation for the damages incurred.

Details of the Issue : 1. Account Restriction Without Proper Notification : On XX/XX/year>, PenFed restricted my account due to a mobile deposit review by their Financial Security Office. 

I was not informed of this restriction in advance, leading to declined transactions.

The restriction was only lifted after I submitted the requested documents, yet I was never provided with a clear explanation of what triggered the security concern. 



2. Severe Financial Hardship : Due to the restriction, I was denied access to cleared funds, leaving me unable to purchase essential items such as groceries, gas, water, and toiletries.

My credit card balance increased significantly because I had to rely on alternative methods for basic survival. 

I suffered three separate instances of public embarrassment when my grocery purchases were declined, despite having sufficient funds in my account. 



3. Failure to Provide Timely Resolution and Communication : After multiple escalations, PenFed failed to provide any meaningful resolution beyond stating that they followed internal procedures.

Their escalations team ignored my calls for days, and I was given conflicting information about how to appeal their decision. 

Despite requesting a review for goodwill compensation ( {$500.00} ) for the undue hardship, PenFed denied my request without considering the significant inconvenience I experienced.

4. Unfair Credit Decision & Bias in Loan Denial : After the restriction was lifted, I applied for a {$4000.00} home improvement loan and was denied.

The stated reason was unsound financial practices, yet I have nine credit cards in good standing and a stable financial history. 

PenFed refused to provide further clarification, and I believe this denial was unfairly influenced by their prior restriction on my account. Requested Resolution : I am requesting the Consumer Financial Protection Bureau ( CFPB ) and Federal Trade Commission ( FTC ) to : 1. Investigate Pen
Feds unjustified restriction of my account and their lack of proper notification.

2. Review their handling of customer complaints and failure to provide timely resolution.

3. Ensure fair credit decisions are being made without bias or retaliation against customers who challenge PenFeds policies.

4. Advocate for fair compensation ( {$500.00} ) for the financial hardship, distress, and embarrassment I endured due to their actions.

Supporting Evidence : Email correspondence with PenFed.

Record of declined transactions.

Documentation of my loan application and denial.

Communication with NCUA regarding their inability to intervene. 


I look forward to a thorough investigation and a fair resolution to this matter. 

Sincerely, XXXX XXXX XXXX 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