
Pentagon Federal Credit Union, or PenFed, has made a series of errors, the complaint for this class action alleges—performing duplicates of certain transactions. Not only has twice the amount authorized been withdrawn from accounts, the complaint alleges, but in some cases accounts have been left with insufficient funds to cover the duplicate transaction or to cover other authorized transactions that occur after it, resulting in $30 insufficient funds or overdraft fees.
The class for this action is all members of PenFed whose accounts were affected by unauthorized duplicate transactions.
On November 14, 2022, the complaint alleges, PenFed made an authorized withdrawal of funds from the account of the plaintiff in this class action, Blake DeConinck. The withdrawal was in the amount of $1,732.78 and was meant to cover his mortgage payment.
Unfortunately, on the same day, the complaint alleges, PenFed made a second, unauthorized withdrawal of the same amount. The complaint claims, “This second withdrawal left [DeConinck] with insufficient funds to cover automated withdrawals for his credit card payment, utilities, and car insurance.”
When the automated withdrawal to pay his credit card was presented, the complaint alleges PenFed rejected the transaction and charged him a $30 insufficient funds fee. The complaint claims DeConinck “could not make another payment on his credit card until the original bounced payment had been fully processed, which took between five and ten business days. During this time, interest continued to accrue on [DeConinck’s] credit card.”
This rejected payment, the complaint alleges, either has damaged or will damage his credit score, “a credit record he has built up carefully and steadily over time.”
When DeConinck spoke to PenFed about the duplicate transaction, the complaint alleges, he was told that PenFed was aware of it but was not given any explanation. In fact, the complaint quotes PenFed’s website as saying, “We are currently experiencing issues with some duplicate debit transactions (ACH). We apologize for the inconvenience and appreciate your patience as we work to correct this issue.”
While DeConinck received an email on November 17 confirming that his mortgage payment had been made, the complaint says, the following day he found that the payment had been returned to his account, resulting in late fees for the mortgage payment that had not been made.
According to the complaint, “PenFed eventually closed [DeConinck’s] checking account because it reflected a negative balance—as a direct result of PenFed’s unauthorized duplicate transaction.”
But that wasn’t the end of it. “As a result of PenFed’s refusal to remedy their misconduct,” the complaint alleges, “the inaccurate and wrongfully charged $71 ‘owed’ [as his negative closed account balance] has been sent to PenFed’s collections department, further harming [DeConinck’s credit score.”
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Pentagon Federal Credit Union Duplicate Withdrawals Complaint
January 27, 2023
Pentagon Federal Credit Union, or PenFed, has made a series of errors, the complaint for this class action alleges—performing duplicates of certain transactions. Not only has twice the amount authorized been withdrawn from accounts, the complaint alleges, but in some cases accounts have been left with insufficient funds to cover the duplicate transaction or to cover other authorized transactions that occur after it, resulting in $30 insufficient funds or overdraft fees.
Pentagon Federal Credit Union Duplicate Withdrawals ComplaintCase Event History
Pentagon Federal Credit Union Duplicate Withdrawals Complaint
January 27, 2023
Pentagon Federal Credit Union, or PenFed, has made a series of errors, the complaint for this class action alleges—performing duplicates of certain transactions. Not only has twice the amount authorized been withdrawn from accounts, the complaint alleges, but in some cases accounts have been left with insufficient funds to cover the duplicate transaction or to cover other authorized transactions that occur after it, resulting in $30 insufficient funds or overdraft fees.
Pentagon Federal Credit Union Duplicate Withdrawals Complaint