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Trouble At Penfed

Kaight
  |     |   1,192 posts since 2011

If you are a PenFed member, you might want to take a look at your accounts. However, importantly, I think this will impact only a minority of PenFed membership:

Yesterday PenFed had a "glitch". They ran their ACH debits twice. So if you did not have an ACH debit processed at PenFed yesterday you most likely are not harmed. But I'm not sure of the extent of this error beyond what happened to me:

For me the second, erroneous, debit overdrew my account. PenFed discovered their error and tried to fix it. They failed, and impacted accounts are currently in disarray. The overdraw automatically triggered a thirty dollar penalty. It's a mess, though I assume PenFed will eventually get a handle on the situation. At least I hope they will. At the moment things at PenFed are FUBAR as impacted members are calling in in droves.

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racecar
  |     |   628 posts since 2014
They just sent pink slips to hundreds of employees within the past month...
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Kaight
  |     |   1,192 posts since 2011
Couple of minutes ago rechecked my PenFed account just for giggles. It remains FUBAR.

They are trying to put things right using a wholesale approach. This just piles new errors onto old ones. They need to go retail, account by account. That has not as yet happened. Wonder if it will. Right now there is money in my account which is not mine. I have neither plan nor intent to seize those funds. But I need to use my account which is my sole linked account at PenFed. So I dearly wish they would get their act together pronto. Hope springs eternal; maybe by their day: Turkey Day.
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Kirkland
  |     |   377 posts since 2014
As far as those with certificate accounts, the trouble could be a worry. I know this is an A+ rated top credit union however, I am only not worried, because I redeemed all of my 5 year PenFed certificates that were issued in late June at 3.5% for 5 years. I imagine a lot of others have felt the need to do the same, when you can easily hold that in liquid savings accounts that are currently paying 3.5%. It appears PenFed is trying to makeup funding by offering much shorter term CD's now, but at some point you probably have to bite the bullet (offer 5 year competitive rates) or maybe you quit loaning, and pink slips go out to a lot of employees. Just speculation here.
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elbow1
  |     |   4 posts since 2022
i have those 3.5 five year cds and thought I am stuck with them now. What's the EWP
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Kirkland
  |     |   377 posts since 2014
I redeemed the first one in September and thought I would stick with the others, then I redeemed a second one late October (when I started getting 3.5% in liquid savings accounts) and thought I would keep just one. Then I just decided when 5 year rates, hit 5% on brokered CD's, about 10-12 days ago, to redeem the last one. In each case, the penalty was all the dividends paid to me, plus all the dividends earned since the last payments to me. I ran the numbers and it made complete sense to even redeem them now. I will deduct the penalties from my interest income earned during the year 2022, so it comes off the top, and reduces your taxable interest income for the year. I am hoping to replace at 5% for 5 years. Before these, going back 20 years, i had only one time ever redeemed a CD early.
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Choice
  |     |   937 posts since 2020
And, the net effective ROI excluding taxes is…? Congrats!
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Kaight
  |     |   1,192 posts since 2011
In the interest of full disclosure:

They got it fixed. My (savings) account now is showing the proper balance. Happy to see it.

This is a sophisticated group here, so you will understand:

My principal angst from the jump was the overdraw; but not the overdraw per se. I knew, after confirming I had not made an error, they would eventually identify their mistake and fix it (and they did). But the overdraw stood in my account record until that fix. And I was concerned about possible (automatic) reporting to either ChexSystems or EWS, or both. I have no such blemishes on my record and certainly do not want them.  So I followed up very, very vigorously.

I can report the following for other PenFed members:

They assured me, on pretty darn good authority, that PenFed does not participate at either ChexSystems or EWS. Let me tell you, I was relieved.
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