Consumer complaint received 2025-10-24 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: PENTAGON FEDERAL CREDIT UNION
State: OR

Complaint narrative:
After unsuccessfully attempting resolution directly with the merchant, XXXX XXXX, I disputed a charge with Pentagon Federal Credit Union ( PenFed ) for a XX/XX/year> flight that was delayed more than thirteen hours due to an airline controlled maintenance issue. I filed the dispute under Services not provided as agreed. 

In that dispute, I provided PenFed with a written account covering : that the delay was entirely airline controlled my complaint filed with the U.S. Department of Transportation the airlines inadequate and policy violating response PenFed allowed the merchant to submit evidence to refute my claim but did not allow me to review or respond to that evidence before closing the dispute in the merchants favor. Only after closure did PenFed share the merchants submission, which proved that I took the flight 13 hours late using non refundable tickets ( the non refundable part is addressed below ). My dispute, however, concerns services not as described, not services not provided. 

The merchants own documentation included its published policy stating passengers are entitled to a refund, even on non refundable tickets, for delays exceeding four hours ( and in another version, 61 minutes ). XXXX XXXX response also explicitly stated that all services were rendered as described, a direct contradiction to my claim, as well as a direct contradiction to its own documentation showing a XXXX hour delay. 

In addition to the delay, the airline failed to provide another paid service : adjacent seating for families traveling with children. Their Customer Service Plan states they will seat children next to accompanying adults. Because of the rebooking caused by the airlines own maintenance delay, my XXXX year old child and I were assigned separate seats on an overnight flight, and airline staff refused to assist in reseating us together. This further supports that the service purchased was not delivered as described ( and is again admitted to in the email from the merchant ). 

PenFed closed the dispute without requesting clarification or additional documents from me ( which would have included an email from XXXX XXXX admitting the delay was their fault and controllable ). Regulation Z ( 12 CFR 1026.13 ) requires a reasonable investigation to determine whether a service was provided as agreed. Failing to engage the consumer or consider the merchants contradictory nature of their documentation does not meet that standard. 

When I escalated through PenFeds complaint process, the Credit Card Dispute Manager called to state that they ( PenFed ) did nothing wrong, claiming banks can only ask merchants for refunds and can not reverse charges without merchant approval. That is incorrect ; issuers have the authority under Visa rules to initiate chargebacks without merchant consent when services are not rendered as agreed.

PenFeds handling of this matter demonstrates an unreasonable and bad faith investigation. Their own file contains evidence proving : The flight was delayed 13 hours The merchants policy promises refunds for delays over 4 hours The airline failed to honor its own family seating policy Had PenFed allowed me to respond, I would have provided the airlines written admission of controllable fault.

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