Consumer complaint received 2025-08-11 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: TX

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Texas XXXX XXXX ( XXXX ) XXXX XX/XX/XXXX ATTN : Collection Dept Executives & Titling Department Managers Pentagon Federal Credit Union RE : Case # XXXX for Auto Loan # XXXX To Whom It May Concern : I am writing to formally lodge a complaint regarding my Pentagon Federal auto loan # XXXX, which I encountered from XX/XX/XXXX to XX/XX/XXXX. Despite my expectations of quality service and my loan product with your company, I was deeply disappointed with the experience. 

My complaint is comprised of the following quantifiable details and events. 

I SPOKE WITH XXXX XXXX ON XX/XX/XXXX AT XXXXXXXX XXXX XXXX AND SHE CONFIRMED THE FOLLOWING STATEMENT " PERFECT TITLE TO REQUEST AND RECEIVE INTEREST OVERAGE TO BE DEPOSITED INTO PENN FED SAVINGS ACCOUNT CASE # XXXX. '' I chose the option to have the overage of interest loan payments that Ive made since XX/XX/XXXX deposited into my Pentagon Federal Savings account after successfully perfecting the XXXX XXXX title. 

During the perfection of the title period, I was informed by numerous collections Department executives stated that the overage of interest would be refunded to my PenFed savings account, and I would have a full APR rate reversal. NOT ONCE did any executive or representative inform me there was a possibility that there would be a different financial outcome since my repeated calls from XX/XX/XXXX. 

I specifically remember one conversation with a female executive about refunding the overage of my interest payments. She said the following statement verbatim : PenFed will honor the full rate reversal, and the overage of payments would be refunded based on my conversation with XXXX XXXX on XX/XX/XXXX. We normally do not do this, but we will honor the refund this time because of the previous recorded phone conversation with XXXX XXXX This specific conversation was held in XXXX, XXXX, or XXXX of XXXX. I am sure there is a recording of that conversation, and it should be revealed. 

Despite struggling financially through XXXX natural disasters ( declared ) in XXXX, I still honored the loan and paid the higher car payments. 

I am self-employed, and my physical office was shut down from XX/XX/XXXX, until XX/XX/XXXX, due to natural disaster displacement. The reopening of my newer office was prolonged due to delayed permits, unpredictable weather, and construction delays. Ive lost XXXX of my income during that time, yet still made the higher pen-fed car payments. 

To make sure the confirmed refund would be honored, I called a few times every month. I included my XXXX XXXX  call log as proof of my outbound calls. I know the credit union recorded all conversations, and I am certain the validity of my complaint will be supported with previously recorded evidence of my conversations. 

I had to borrow {$6500.00} of money during the natural disasters to perfect the title. 

I continued to pay the increased payment of {$1500.00} - {$1500.00} every month since XX/XX/XXXX. They recently reduced my payment to {$1300.00} ; however, I need my payment returned to the signed contractual amount of {$1100.00}. 

I attempted to resolve this matter by speaking with countless collection, title, and volunteer surrender reps via phone calls since XX/XX/XXXX ; however, unfortunately, the issue remains unresolved, and I am stuck with a higher car payment. 

I am requesting that you reduce my rate back to XXXX percent and refund the fully paid overage of interest to my PenFed Savings account. I expect a response within 7-10 business days, or I will seek legal action. 

Please find attached copies of any relevant call logs that support my complaint. 

I hope we can resolve this matter promptly and amicably ; however, should I not receive a satisfactory response, I will be forced to escalate this complaint to all consumer protection agencies and take legal action. 

Thank you for your attention to this matter. 

Sincerely, 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