Credit card or prepaid card -- Fees or interest -- Complaint #4523344
Complaint Overview
Complaint ID: 4523344
Company: Pentagon Federal Credit Union
Product: Credit card or prepaid card
Sub-Product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-Issue: Problem with fees
State: Virginia
ZIP Code: 23238
Date Received: 2021-07-07T12:00:00-05:00
Date Sent to Company: 2021-07-08T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Servicemember
Consumer Narrative
PenFed is violating the Credit Card Act of XX/XX/XXXXand are in breach of the terms of their promotional advertisement for Balance Transfers at Zero percent interest for 12 months. Pursuant to the CCA of XX/XX/XXXX, no interest is to be charged if the entire balance is paid by the due date. Since the inception of my XXXX XXXX Visa, I have always paid for all of my purchases IN FULL BY THE DUE DATE which is the XXXX of each month. In XX/XX/XXXX, I took advantage of PenFed 's promotional Balance Transfer where they clearly stated " no interest would be charged for 12 months. In this case, it was to expire on XX/XX/XXXX. However, PenFed began assessing interest to my credit card and/or my " deferred '' balance transfer in breach of the promotional. They have refused to credit my account even after speaking with their representative, stating that I would need to pay the balance in FULL including the deferred amount which is a part of the promotion. The closing date on my credit card is the XXXX of each month and ALL CHARGES are paid in full with an extra amount towards the deferred balance transfer. PENFED 's Credit Card Agreement for BALANCE TRANSFERS and their credit card in general are both deceptive and ambiquous as it states as follows : " C. BALANCE TRANSFERS. ( 1 ) There is no grace period on balance transfers. Finance charges accrue on all regular or promotional balance transfer amounts from the date posted to your Account and continue so long as such amounts remain outstanding. ( 2 ) A finance charge will be imposed on the average daily balance of balance transfers, which is the sum of the balance transfers outstanding each day during the billing cycle, divided by the number of days in the billing cycle. The sum of balance transfers is determined by including new balance transfers and deducting any payments or credit and excluding any unpaid finance charge. A balance transfer appearing on the periodic statement is considered a part of the outstanding balance from the date of posting. ( 3 ) The amount of finance charge is calculated by multiplying the average daily balance for each balance transfer by its monthly periodic rate. The monthly periodic rate is the yearly interest rate divided by 12. If you transfer a balance from another financial institution to us, you will immediately incur finance charges at the regular or promotional APR available at the time of the balance transfer and on purchases at the purchase APR. For instance if you transfer {$1000.00} at a promotional rate of 0 % APR and then make a purchase of {$200.00}, you will immediately accrue finance charges at the purchase rate, forgoing the grace period. To avoid finance charges on new purchases after you transfer a balance, you must pay all balances on your Account including any balances that you transfer in full by the due date. '' Such wording, contradicts the Credit Card Act of XX/XX/XXXXas well as the promotionals they would offer. Such wording and documents violate consumer protections, related to interest rates and how they are calculated, fees, disclosures and marketing.
Frequently Asked Questions
What is Complaint #4523344 about?
Complaint #4523344 was filed against Pentagon Federal Credit Union regarding Credit card or prepaid card specifically about Fees or interest. It was received by the CFPB on 2021-07-07T12:00:00-05:00.
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 (Credit card or prepaid card) 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.