Consumer complaint received 2026-03-09 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: PENTAGON FEDERAL CREDIT UNION
State: AZ

Complaint narrative:
Complaint Regarding Accumulation of Late Fees and Failure to Review Call Recording Institution : PenFed Credit Union Loan Type : Auto Loan Internal Case Number : XXXX I am submitting this complaint regarding the handling of my auto loan by PenFed Credit Union and the accumulation of late fees that resulted from a single failed automatic payment. In 2023, XXXX of my automatic payments failed. Shortly after realizing this, I contacted PenFed directly while I was approximately 18 days late in order to ask about the ramifications of the missed payment and to ensure I handled the account properly moving forward. During that call, I specifically asked about what would happen as a result of the missed automatic payment. My intent was to resolve the issue in good faith and understand what steps were necessary to prevent additional problems with my loan. However, during that conversation I was not informed that late fees would continue to accrue monthly, nor was I offered the skip-payment option that PenFed representatives have since indicated is commonly available to members. Had I been informed that late fees would continue accumulating each month or had I been offered a skip-payment option during that call, I would have taken immediate action to prevent additional fees from accumulating. Because this information was not communicated to me during that call, late fees continued accumulating on the account for approximately 27 months, resulting in more than {$700.00} in late fees stemming from the original missed automatic payment. I recently contacted XXXX to dispute these fees and requested that the original call recording from my inquiry be reviewed, as that recording would confirm what information was or was not disclosed to me when I contacted PenFed about the missed payment. My case was escalated internally and I spoke with a supervisor. However, I was informed that no refund would be issued, and during that conversation it became clear that the call recording had not been reviewed prior to denying my request, despite the recording being central to the dispute. When I asked why the call had not been reviewed after the matter had been escalated for more than a week, the supervisor stated that PenFed does not typically go back and reverse late fees because it is the customers responsibility to know the terms contained in the loan agreement. While I understand that loan agreements contain provisions regarding late fees, this response does not address the core issue in this situation. I contacted PenFed proactively to ask about the ramifications of the missed automatic payment specifically so that I could handle the situation correctly. If the consequences of the missed payment had been clearly explained during that call, or if the skip-payment option had been presented as PenFed representatives have indicated is commonly offered to members, these accumulated fees could have been avoided. I have otherwise remained current on the loan and have continued making payments. My request is simply that this matter be reviewed fairly based on the recorded communication between myself and PenFed.

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