Consumer complaint received 2026-02-03 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: PENTAGON FEDERAL CREDIT UNION
State: FL

Complaint narrative:
Complaint Against Pentagon Federal Credit Union ( PenFed ) Improper Loan Servicing and Unfair Interest Rate Increase In XX/XX/year>, I received written correspondence from Pentagon Federal Credit Union ( PenFed ) regarding a required vehicle title transfer and associated documentation. At that time, I was in the midst of a divorce. The vehicle is located in Vermont, titled solely in my name, while I currently reside in Florida. 

PenFeds letter stated that failure to complete the requested documentation within the specified timeframe would result in an increase to my loans interest rate. Upon receipt of the documents from my spouse, I contacted PenFed to explain my circumstances and advised that I was actively working to complete the required paperwork as quickly as possible. I was explicitly told by a PenFed representative that it would be many months before any interest rate increase would occur and that I should remain in contact if delays arose.

I subsequently completed the notarized Power of Attorney and provided a copy of my drivers license, as instructed. These documents were mailed via USPS along with the title, and tracking confirmed delivery within days. Despite this, several weeks later I received another letter from PenFed stating that my documentation had not been submitted. 

I contacted customer service and was informed that while the title had been received, no accompanying paperwork was found in the file, requiring me to resubmit the documents. I requested that the paperwork be resent to me, which the representative stated she would do. I never received those documents. 

Instead, I later received a notice stating that my loans interest rate had been increased to approximately XXXX percent, up from roughly XXXX percent. I contacted PenFed again, at which time a different representative stated that all of my paperwork had, in fact, been received, but that the notarization allegedly required two signatures, a requirement that was never disclosed in the original instructions or prior communications.

This representative stated that he would place a hold on the XXXX percent interest rate increase and would remail the necessary documents. No documents were received. On XX/XX/XXXX, when I logged into my account, the interest rate remained at XXXX percent. I contacted PenFed once more and was informed that the elevated interest rate would remain in effect until the paperwork was completed, despite the fact that I still have not received the required documents to do so.

PenFeds inconsistent communications, failure to provide complete or accurate instructions, apparent mishandling of submitted documentation, and premature implementation of a substan
tial interest rate increase constitute unfair and deceptive business practices. I acted in good faith, complied with instructions as provided, and relied on representations made by PenFed employees. Nevertheless, I was subjected to a nearly XXXX percent interest rate increase due to errors and delays attributable solely to 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 non-monetary relief