What is PenFed's problem

[audreyh1]

Thanks, Audrey, I should have thought of that. By the way, the last time I tried to transfer $5000 from Penfed to my credit union, it wouldn't even let me do that.........got an error message saying "YOU HAVE EXCEEDED THE TRANSFER LIMIT OF $5000". So, they obviously have big problems. Once I get these funds moved, I'm basically done with PenFed, other than the gas-rebate VISA card.

It’s actually quite common with credit unions to have low transfer limits. PenFed is not alone. I just do the transfers from my brokerage account and have transferred up to $100K I think, no problem.

 

[audreyh1]

FWIW, you didn't have to go along with that. I ignored all of their badgering to switch and I still have the old 5% cash back card. It's credited to my account the same month I get the bill, so effectively an instant rebate.

Me too. I don’t even remember getting badgered to switch.

 

[jazz4cash]

Me too. I don’t even remember getting badgered to switch.

Is that 5% cashback on everything? When was the switch? I have 5% cashback on gas but can’t recall if they ever tried to switch me over.

 

[wrigley]

PenFed member for over 35 years and generally very well satisfied.

But I agree they seem to have lost their way recently. I got a mortgage from them about 5-6 years ago and without going into details it was the worst experience from a financial institution I've ever had. Just horrible and they never even responded to any of my complaints.

I still keep a tiny account with them solely for the 5% cash back credit card at gas stations, but everything else left their hands long ago.

Really? They told me about a year and a half ago that there is no longer a 5% cash back "bennie" for gas. I opened a card with them about 5 years ago because I also found the 5% cash back on gas appealing. I have almost a 50 mile one-way commute to work daily.


Everything was tracking along just fine, and about 2 years ago I noticed the math wasn't adding up on my monthly gas discount. I watched it for a couple more months and then finally contacted them (it took awhile until I spoke to someone that was able to answer my questions). I was told the 5% cash back went away and it was now 1.5% cash back for gas purchases. I told the individual that I never received any notice of this change and I was basically told, "oh well......it's dropped to 1.5% on gas". I paid off my card, and cancelled it. To this day, no one from Pen Fed has contacted me in any way to ask me why?


Mike

 

[braumeister]

Really? They told me about a year and a half ago that there is no longer a 5% cash back "bennie" for gas. I opened a card with them about 5 years ago because I also found the 5% cash back on gas appealing. I have almost a 50 mile one-way commute to work daily.


Everything was tracking along just fine, and about 2 years ago I noticed the math wasn't adding up on my monthly gas discount. I watched it for a couple more months and then finally contacted them (it took awhile until I spoke to someone that was able to answer my questions). I was told the 5% cash back went away and it was now 1.5% cash back for gas purchases. I told the individual that I never received any notice of this change and I was basically told, "oh well......it's dropped to 1.5% on gas". I paid off my card, and cancelled it. To this day, no one from Pen Fed has contacted me in any way to ask me why?


Mike

What happened was they seem to have convinced most people to switch their card to the "new and improved" points version. That was more than 2 years ago so they just weren't offering the cash rebate card when you applied.

And it's only 5% on gas. I think it's 1 or 2% on everything else, but I only use it for gas now. The FIDO 2% card is easier for most things. Since I'm a high mileage driver, the 5% gas rebate is still attractive for me.

 

[audreyh1]

Is that 5% cashback on everything? When was the switch? I have 5% cashback on gas but can’t recall if they ever tried to switch me over.

They changed the 5% cash rewards on gas card years ago so that you earned points to redeem, instead of cash back. And the points had less cash value. But those of us with the original card still had the cash back benefit so it only affected new applicants.

The math is still the same for us - still getting 5% cash back on gas purchases as long as it’s a regular gas station and not associated with a store. Don’t get anything for non gas purchases.

 

[wrigley]

They changed the 5% cash rewards on gas card years ago so that you earned points to redeem, instead of cash back. And the points had less cash value. But those of us with the original card still had the cash back benefit so it only affected new applicants.

The math is still the same for us - still getting 5% cash back on gas purchases as long as it’s a regular gas station and not associated with a store. Don’t get anything for non gas purchases.

I was still only getting 1.5% on gas. I cancelled and went with the

Fidelity Visa @ 2% cash back for all purchases.


Mike

 

[REWahoo]

I can't recall the exact changes PenFed made to their CCs but I do remember they reduced the point values on their Platinum Rewards Visa to the point I stopped using it. I also recall having to jump through a hoop or two a few years ago to retain the 5% pay-at-the-pump cash back on their Platinum Cash Rewards Visa. Glad I did as I'm still taking advantage of that benefit. A quick look shows since 2007 I've received more than $2,000 in cash back on that card - much of it due to travel in the RV.

 

[audreyh1]

I can't recall the exact changes PenFed made to their CCs but I do remember they reduced the point values on their Platinum Rewards Visa to the point I stopped using it. I also recall having to jump through a hoop or two a few years ago to retain the 5% pay-at-the-pump cash back on their Platinum Cash Rewards Visa. Glad I did as I'm still taking advantage of that benefit. A quick look shows since 2007 I've received more than $2,000 in cash back on that card - much of it due to travel in the RV.

Interesting. I only ever had the gas card, and they never changed it on me.

 

[braumeister]

A quick look shows since 2007 I've received more than $2,000 in cash back on that card - much of it due to travel in the RV.

Around $1,500 for me just since 2011. No RV but two cars and we both drive quite a bit.

 

[REWahoo]

Interesting. I only ever had the gas card, and they never changed it on me.

One of my PenFed cards (thought it was the 5% cash back for gas one) required me to open another account with them to prevent reducing my benefits. Could be I'm not recalling accurately and it was the other (points) card.

 

[HawkeyeNFO]

I went in to ask about mortgages last Fall, and their rep that I talked to in person was incompetent. Took her numerous days to respond to any of my questions. By the time she sent me an e-mail, I had signed up with another lender. PenFed's mortgatge rates are no longer competitive either.

I work in the Pentagon, and the PenFed branch here is right down the hall from Navy Federal. NFCU is SOOO much more professional and efficient than PenFed, which has really gone downhill over the past 7 or 8 years.

 

[sunnysideup]

Typically I do all transactions online, so no problem. Last month I needed to do something different, so after 20 minutes on hold, I was told to write a letter and upload it. No problem, letter done and uploaded. Response email says they will get back to you by email.

Waiting for over a week....

Ten days later I sent a message asking for them to process the request, including the reference number of the uploaded document.

3 days later I checked the account. Request was handled. Never got a response from them.

So, my takeaway is the customer service is SLOW. I will not use them for any complex issues, and DH and I are making all accounts POD.

 

[CaptTom]

I just checked my last statement. 5% cash back on gas, automatically applied as a credit. They even rounded up to the next penny.

I was badgered to change to the "points" system back when they first went to that. I resisted and was offered a choice of 5% back on any one category. I chose gas. I use the card for nothing else. They don't seem to care that my use of it was cut back by probably 90%.

 

[RAE]

I am still getting 5% cash back on pay-at-the-pump gas with the PenFed VISA card.

 

[jazz4cash]

I am still getting 5% cash back on pay-at-the-pump gas with the PenFed VISA card.

Me too. Didn’t realize it’s a legacy card. Guess we’ll need to make sure we don’t give it up. I’m actually surprised it still pays 5%! I combine with grocery points, car wash discount and nickel off Thursday and pay 50 cents less than posted price.

 

[gear2th]

I have two Visa cards with Penfed. The Platinum Cash Rewards Visa still pays 5% on gas at the pump but all other rewards have been eliminated; use another card if you have to pay inside or you'll get NOTHING. Also, at some point, I had to add a $500 direct deposit to keep this card.


My other card is the Platinum Rewards Visa Signature. This was the one where they devalued the points. I use it only for grocery stores effectively getting back 2.55%.

 

[Tracer]

I still keep a tiny account with them solely for the 5% cash back credit card at gas stations, but everything else left their hands long ago.

I keep a $1000 CD there to get that card also. One of the good things they have. I wanted to use their card when I went to Italy a few years ago and asked if they could increase my $5000 credit limit by a couple of thousand dollars. They turned me down!.... And I have an 830+ credit score.. WTF!

 

[paul5795]

The people that bought out house in June used PenFed for a mortgage. If their realtor hadn’t called PenFed every day, the deal never would have closed on time.

I had to do a doubletake when I read this comment. My daughter bought a house in June financed by PenFed and this is EXACTLY what happened to her! PenFed has been less than impressive recently.

 

[jazz4cash]

I sure hope they fix these issues. I have a bunch of CDs that will probably go elsewhere in Jan. Besides the 5% gas card their Premium Online Savings is pretty decent. It’s 0.8% after dropping a bit like everybody else.

 

[wolf]

Me too. My 10yr, 5%, CD's mature end of this year. Time to move on. Penfed use to be a leader in rates, service.

They just closed my Penfed credit card, for lack of use. So sad.....presume management changes....

 

[JDARNELL]

Me too. My 10yr, 5%, CD's mature end of this year. Time to move on. Penfed use to be a leader in rates, service.

They just closed my Penfed credit card, for lack of use. So sad.....presume management changes....

That is impressive.

 

[CaptTom]

I've been slowly rolling some PenFed CDs into their Premium Savings. It's actually a better rate at the moment. When I took out the CDs they were the best rate available. I'll probably keep the Premium Savings account for now.

 

[jazz4cash]

Me too. My 10yr, 5%, CD's mature end of this year. Time to move on..

We’ll have a thread to toast them farewell. I remember how tough it was to make a ten year commitment at the time. I think they had limited availability and a countdown clock for reservations to get the 10 yr special. Looking back I wish I’d bought more! Maybe they’ll offer a good deal to reduce the flow of outgoing funds.

 

[RobbieB]

No surprise. High rates and great service? In the era of negative rates and call India for help?

Must have been losing big bucks. Time to stop the bleeding.