Payday loan, title loan, personal loan, or advance loan -- Charged fees or interest you didn't expect -- Complaint #12569117
Complaint Overview
Complaint ID: 12569117
Company: Pentagon Federal Credit Union
Product: Payday loan, title loan, personal loan, or advance loan
Sub-Product: Title loan
Issue: Charged fees or interest you didn't expect
State: Florida
ZIP Code: 32765
Date Received: 2025-03-19T12:00:00-05:00
Date Sent to Company: 2025-03-19T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
I am filing a formal complaint against Pentagon Federal Credit Union ( PenFed ) for misleading, deceptive, and predatory loan payment practices. 1 ) Misrepresentation of Payment Reallocation PenFed originally confirmed in writing that my extra payments would be applied to principal, then later reversed this without explanation. They provided contradictory responses and refused to correct the misapplication of my payments. This forced me into additional interest charges that should have been avoided. 2 ) Deceptive Future Payment Scheme Their system automatically defaults extra payments to advance the due date instead of reducing principal. This was never clearly disclosed, and I was misled into making payments that did not properly reduce my loan balance. I was not given a clear option to apply extra payments toward principal until I manually discovered the issue. 3 ) Forced Use of an Internal PenFed Account for Principal-Only Payments After requesting to apply extra payments toward principal, PenFed suddenly imposed a new restriction that principal-only payments can only be made from an internal PenFed account. This policy was never disclosed when I refinanced my loan, and I never agreed to use a PenFed account for payments. This is a predatory attempt to force borrowers to keep money within PenFed while making it harder to pay down debt. 4 ) New Late Fee Scam Principal-Only Payments Do Not Count Toward Regular Loan Payments On [ date ], I made a {$400.00} principal-only payment following PenFeds instructions by first transferring the funds to my internal PenFed account and then applying them to my loan. Now, PenFed is falsely claiming I still owe my regular payment ( {$100.00} ) or else I will be charged a late fee. This contradicts what I was previously told and is an unfair policy that penalizes borrowers for paying off their loans faster. This is a clear pattern of unfair and deceptive lending practices, and I am requesting a formal investigation into PenFeds handling of loan payments. Sincerely, XXXX XXXX XXXX XXXX
Frequently Asked Questions
What is Complaint #12569117 about?
Complaint #12569117 was filed against Pentagon Federal Credit Union regarding Payday loan, title loan, personal loan, or advance loan specifically about Charged fees or interest you didn't expect. It was received by the CFPB on 2025-03-19T12:00:00-05:00.
How did Pentagon Federal Credit Union respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Payday loan, title loan, personal loan, or advance loan) and describe your issue in detail.
Can I see other complaints against Pentagon Federal Credit Union?
Yes, visit the Pentagon Federal Credit Union company profile at readthecomplaint.com/company/pentagon-federal-credit-union to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.