Consumer complaint received 2026-03-25 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with customer service
Company: PENTAGON FEDERAL CREDIT UNION
State: NC

Complaint narrative:
I am submitting this complaint regarding Pentagon Federal Credit Union in connection with a credit card account that was placed into charge off status after a servicing error and a debit card restriction that followed. Several months ago, I contacted PenFed to establish a payment arrangement on my credit card account. The representative who handled my request failed to properly process the payment arrangement. When I later contacted PenFed again after noticing that the account appeared closed in my online account, another representative explained what should have been done and acknowledged that the previous representative had not properly handled the arrangement. After that conversation, I escalated the issue several times in an attempt to resolve the matter. Despite my efforts, the issue was never corrected, and I did not receive follow up communication or a resolution. In addition, I requested that a supervisor contact me regarding this matter and provided availability between XXXX XXXX and XXXX XXXX I did not receive a call within that timeframe. After nearly two days, I received a call after XXXX XXXX. when I was unavailable. I returned the call but have not received any additional follow up from a supervisor regarding my complaint. As a result of the original servicing error, the account eventually entered charge off status. This charge off did not occur because I refused to pay or ignored the account. I attempted in good faith to establish a payment arrangement and resolve the matter before the account was closed. On XX/XX/XXXX, my debit card was restricted or deactivated without any prior notice. I only became aware of the issue after attempting to use my card multiple times and the transactions were declined. I then contacted PenFed and was informed of the restriction. I request that PenFed review the recorded calls associated with my account. Those recordings will confirm that the payment arrangement was not properly handled during my initial call and that I made multiple attempts to resolve the issue. Following the charge off, PenFed has restricted my debit card connected to my checking account. This restriction creates a significant hardship because I live in a state where PenFed does not have branches or ATMs. My debit card is the primary method I have for accessing funds in my account. In addition, the credit card associated with this matter accumulated reward points that have monetary value. I have not received any documentation explaining what happened to those rewards when the account was closed or charged off. I have not been provided with documentation showing whether those points were applied to the account balance, forfeited under the program terms, or otherwise removed. This matter raises concerns under several federal consumer protection laws. The failure to properly process and investigate a billing dispute may violate the billing error resolution requirements under Regulation Z, 12 CFR 1026.13, as well as the payment crediting requirements under 12 CFR 1026.10. If the charge off resulted from a servicing error that was reported but never corrected, the resulting reporting may also raise concerns under the Fair Credit Reporting Act, 15 USC 1681s-2. Additionally, the failure to properly investigate and resolve this issue after repeated escalations may constitute an unfair practice under 12 USC 5531. Please preserve and review all recorded calls related to this account. Specifically prior to the Credit card being close to show the negligence of the customer service representative, that resulted in as a negative impact to me the customer.

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