Another bad PenFed customer experience.

[MichaelB]

Quote:

Originally Posted by REWahoo I'm not sure I can agree with your "elite community" comment - after all, they let me in. .

Well, they definitely lowered their standards because they let me in as well. Still, I seem to be the one of the few that have seen their customer service stumble, three times now, all with homeowners insurance. Still a banking customer, and based on my most recent brick and mortar banking experience (Wells Fargo) that isn't going to change.

[Texas Proud]

Quote:

Originally Posted by Katsmeow Based on your name...is your sister perhaps in Texas? Texas has many restrictions on anything that is considered a home equity loan such as a cash out refinance. Once you do a cash out refinance my understanding is that all future refinances of that property -- even if you don't take out money -- are considered as subject to home equity loan rules under Texas law and are treated as if they were cash out refinances (even if no cash comes out). In some research I was recently doing I came across something indicating that Penfed doesn't do Texas home equity loans because it doesn't want to have to deal with the Texas requirements. (Don't know if that is true or not but it is what I read).

Yes, my sister is in Texas.... heck, maybe she is the reason they do not want to do refis in Texas...

My main point was they knew this upfront. It was not hidden. Yet they had my sister do all the stuff needed to get a new loan with all the fees. Heck, they even paid off her old loan!! It was only after all that they told her they do not do a refi with cash out in Texas.

If they knew about the rules, then they should have told her upfront and saved her the aggravation. And when they did find out they made a mistake, they should have bent over backwards to help fix the problem and not try and put it all on my sister.

[Nords]

Quote:

Originally Posted by East Texas I think all of us stood back and watched the enlisted swelling the ranks of the USAA membership to see if it would have any impact on anyone who has been a long term member. I haven't been impacted at all. USAA isn't going to put up with bad business so no matter what the eligibility. If someone is an underwriting or financial risk to the membership, they're out. Same with an employee. If any employee breaks one of the core values and they're fired. I still believe USAA membership is an elite community. I believe they try their best to do the right thing at the right time for the right reason. USAA makes it easy for me to do business with them and that has value.

I'm sure that the enlisted community hesitated a long time before signing on to an organization filled with and run by officers. After all, how'd that work out for them last time?

I can't claim to be totally without bias, but USAA's marketing staff says that the last million of their eight million members have been collectively better behaved than the first seven million. Fewer foreclosures, fewer fraud cases, fewer delinquent policies... better on all financial behaviors.

Quote:

Originally Posted by REWahoo I'm not sure I can agree with your "elite community" comment - after all, they let me in.

Beat me to it!

Speaking of insurance, USAA just re-started issuing policies to Hawaii owners of existing homes. I'm currently paying about $1000/year to Armed Forces Insurance, which admittedly has their own concerns for being adequately capitalized & re-insured. But USAA wouldn't touch my policy for less than $5000/year. They didn't seem to be trying very hard, either.

[East Texas]

I remember hearing the stories when USAA first created the subsidiary company for former dependents. Some of the officers were screaming took offense to to the expanded eligibility. Their kids, of course, were way above standard and deserved to be with USAA. All those other kids would bring down the Association. Underwriting guidelines were even tighter back then so it wasn't a given Junior could easily slide in under Daddy's or Mom's membership. And the ex-dependents did not enjoy the same world-wide coverage as the USAA members. I think that's changed a bit.

Quote:

I'm sure that the enlisted community hesitated a long time before signing on to an organization filled with and run by officers. After all, how'd that work out for them last time?

[MikeD]

Add me to the disenchanted-with-PenFed list. They screwed up a bunch of stuff with my switching to the new rewards credit card, three months in a row, gave me the silent treatment (literally - silence on their end of the phone as a response), got snotty, then, repeated, FIVE TIMES word for word, the same sentences including two more times after I told them I understood and asked them to stop. I will pretty much do whatever it takes to get the $250.00 reward card and then NEVER AGAIN. I am very happy with NAVY FCU and Nasa FCU.

Mike D.

[Sarah in SC]

Psssst....Mike....Chase Sapphire Preferred.
That's what I switched to, though I'll grab that same thing with PenFed before I bail completely.

[MikeD]

Thanks, Sarah, I take a look at them.

Mike D.