Original review: April 2, 2021
Retired military officer and disabled veteran disappointed to say the least. I had a horrible experience. I've had multiple auto loans with this company over many years and never experienced anything so absurd. I obtained an auto loan in Dec 2021 for a truck to use commercially. Initially, I purchased the truck and maintained it for personal use and USAA Insurance explained the vehicle would be covered for 30 days of my existing policy to full coverage as on my other insurance vehicle. At the end of the 30 days I was ready to insure and register for commercial use. I then obtained a commercial insurance policy. I received a letter from Penfed later in Jan 2021 telling me they needed the insurance to reflect Penfed as the lienholder. I had the insurance agent modify to reflect and sent to Penfed. They billed me $6400 and added it to my loan without prior notification in a very aggressive manner clearly to give business to a third party.
I disputed and they agreed that I had the insurance and what they needed but wouldn't refund $800 as they said I didn't have insurance with the carrier in Dec 2020. I said, that's correct, I had insurance with USAA whom I've had for over 30 years at that time as the truck was personal conveyance during that first month. They now say I have to prove that…how ridiculous can this get. No issues and they're billing me for a period of time that has come and gone and I had insurance. I'm wondering with the aggressive manner of this transaction so fast how many other Penfed members have had this happen to them? I've never experienced this with any other loan from Penfed nor another banking entity. The loan process was normal as with previous auto loans with the credit union. However, I've never had an issue with insurance on any loan and appears they are aggressively giving business to a third party for financial gain.
I filed a complaint with the Consumer Financial Protection Bureau as I have concerns about the aggressive nature of these transactions and if not illegal I'd say ethically questionable especially with disabled veterans and retired military families they claim to serve with pride. I'm beyond disappointed and will not do future business with Penfed…ever.
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