Consumer complaint received 2026-06-17 00:00:00
Product: Checking or savings account — Savings account
Issue: Managing an account — Cashing a check
Company: PENTAGON FEDERAL CREDIT UNION
State: MI

Complaint narrative:
On XX/XX/XXXX I deposited a check into our XXXX savings account and it has been on hold for over XXXX business days and still on hold as of today. I have had a PenFed account since 2017 and havent really used it. Back then Penfed was seen as a good bank and worth banking with, I thought so until this month. I successfully sued XXXX for an error on my background check and settled out of court for XXXX. My plan at the time was deposit that check into my PenFed account because I wanted to apply for a car loan based on their good rates. I am currently working to improve my credit and I figured Id use that time to build some history with Penfed which would later position for a home loan in 2 years. During this time we received an unexpected settlement check from a law firm. It was part of a class action lawsuit against XXXX XXXX bank. The check was for {$1200.00}. We submitted the check via mobile banking and the funds were placed on hold, totally normal no issues with that at all. About a week later, we received a letter in the mail stating that the funds would be on hold for XXXX business days and they would be made available at that time. On the ninth business day, I reached out to PenFed to inquire why the check was still on hold. I was informed that PenFed would need a letter from the bank on letterhead and signed stating that the check had cleared. They never sent me this request in writing or via email which if theres going to be an extended hold on a check by law they have to notify the consumer in writing, they did not. When I contacted The originating bank, which was XXXX Bank I was informed that the check cleared on XX/XX/XXXX and they would not be able to provide me with any documentation stating that the check had cleared because we were not the account holders. They told us that PenFed would have to reach out to the bank for this documentation. I contacted PenFed once more to request that they reach out to XXXX Bank and also request that they reach out to XXXX because they are the administrators who handle information about payments and they would have to contact them to request any copies of the clear check. After doing so my account was done placed on hold PenFed has blocked me from my newly open, checking account and has blocked my online access. I requested to speak to a supervisor, I was put in touch with XXXX. Who told me that he would research the issue and call me back within an hour. He called me back about XXXX hours later stating that the fraud department will only release the check if I can show PenFed documentation that we have a rights to this settlement. When I asked why they couldnt simply call the number that was listed on the check XXXX told me that they dont use telephone numbers on checks as verifications because anybody could just add a phone number onto the check and it could route someplace in XXXX he told me that for giggles He called the phone number which was a XXXX number and it went unanswered which Ive called this number multiple times and it always goes to an automated system. XXXX told me that maybe they could verify with the law firm if the name of the law firm was printed on the check, so apparently phone numbers can be forged, but not the name of the law firm, I guess. PenFed wants me to prove that this is a valid check, when this is a class action lawsuit against XXXX XXXX that has been going on for years and they finally came to an agreement, and the checks are now being mailed out to consumers who were affected. PenFed dont want to actually do any research to determine if the check is fraudulent, which is not. XXXX told me that the check didnt even have a watermark, which it does it has a fingerprint watermark and another watermark on the back of the check it even states this information on the front of the check. So clearly were being accused of check fraud and printing a check and I fully believe that our race has something to do with why we are being targeted. PenFed doesnt want to actually conduct any investigation into the check theyve held my available funds in my checking account and they refuse to release a hold of the check. I believe that my rights has been violated!

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