PenFed floating payment

Anonymous · ‎10-12-2017

So I called PenFed to find out why the payment I made on my statement balance 3 days ago posted to my account but didn't update my available credit. The CSR informed me that they "float" payments for 10 days before they update the available credit. That is ludicrous to me, especially since they money most certainly already came out of my bank account. Has this happened to any others? He told me it didn't matter if the payment came from another bank or an internal PenFed account. I'm none too happy about this policy.

Anonymous · ‎10-12-2017

You agreed to it.

PDF Warning: https://www.penfed.org/1273/

"For the first six months all payments received from PenFed members who have held membership for six months or less will be credited to your Account as of the date we receive them, but credit in the amount of the payment will not be available to you for 10 calendar days."

When in doubt about a bank's actions, read the contract you agreed to. 99.9999% of the time, it's in there, and was in there when you opened the account.

Anonymous · ‎10-12-2017

@Anonymous wrote:
You agreed to it.

PDF Warning: https://www.penfed.org/1273/

"For the first six months all payments received from PenFed members who have held membership for six months or less will be credited to your Account as of the date we receive them, but credit in the amount of the payment will not be available to you for 10 calendar days."

When in doubt about a bank's actions, read the contract you agreed to. 99.9999% of the time, it's in there, and was in there when you opened the account.

I see that you are right. And yet I still think its a ridiculous policy. Now that I'm aware I just won't be using this card again until this trial period is over. That policy sounds like something from Credit One.

Anonymous · ‎10-12-2017

It does seem like a stupid situation but they have their own internal data points as to why they do it. Who knows!

HeavenOhio · ‎10-12-2017

Yeah, it's somewhere between annoying and onerous. Payment float policies were a big reason why I closed two cards this year. And it's a reason why I'm not likely to consider PenFed as a lender. I was thinking about applying for one of their cards until I read here about this policy awhile back.

Doesn't PenFed also have restrictions on deposits and withdrawls from savings and checking accounts?

shoegal · ‎10-12-2017

@HeavenOhio wrote:
Yeah, it's somewhere between annoying and onerous. Payment float policies were a big reason why I closed two cards this year. And it's a reason why I'm not likely to consider PenFed as a lender. I was thinking about applying for one of their cards until I read here about this policy awhile back.

Doesn't PenFed also have restrictions on deposits and withdrawls from savings and checking accounts?

They do have those restrictions including depositing a check from their mobile app restriction for 3-months. But, it's not forever once you pass that annoying period restrictions are lifted. I don't use Penfed as my main bank so it doesn't bother me. My main bank is BOA (for over 10 years), and Alliant for savings and super fast ACH on my checking there.

UpperNwGuy · ‎10-12-2017

I've been a PenFed member for 26 years and have had one or more of their credit cards for that entire period, so I'm not subject to this new float policy. However, their online site annoys me constantly because the summary page (where all my accounts appear) often lists a lower balance than the transaction detail for a credit card account. It often takes an extra day for the summary page to catch up. And this is for transactions that have already moved from pending to posting. Very annoying when I try to balance my account in Moneydance.

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Loquat · ‎10-12-2017

I'm sure it's annoying...i had to deal with it myself. If you have the time and really want it updated, you can call in and ask for a manager and they'll manually release once they verify the funds. It's super annoying and 6 months is a long time to have to deal with it...but most of us with PenFed have been there and done that. Just one of the quirks that comes with being a member.

Anonymous · ‎10-12-2017

@HeavenOhio wrote:
Yeah, it's somewhere between annoying and onerous. Payment float policies were a big reason why I closed two cards this year. And it's a reason why I'm not likely to consider PenFed as a lender. I was thinking about applying for one of their cards until I read here about this policy awhile back.

Doesn't PenFed also have restrictions on deposits and withdrawls from savings and checking accounts?

Some of their policies are the reason I closed my checking account, and why I won't apply for any cards through them but ones that are specialized in carrying balances (with low APRs and no fees). I don't understand how in this day and age an online banking system can seem so antiquted... Transactions don't even post instantly, I'm sorry I didn't realize it was 1999 still.

It's sad that I'd rather use a big bank than Penfed.

HeavenOhio · ‎10-12-2017

@shoegal wrote:
@HeavenOhio wrote:
Yeah, it's somewhere between annoying and onerous. Payment float policies were a big reason why I closed two cards this year. And it's a reason why I'm not likely to consider PenFed as a lender. I was thinking about applying for one of their cards until I read here about this policy awhile back.

Doesn't PenFed also have restrictions on deposits and withdrawls from savings and checking accounts?
They do have those restrictions including depositing a check from their mobile app restriction for 3-months. But, it's not forever once you pass that annoying period restrictions are lifted. I don't use Penfed as my main bank so it doesn't bother me. My main bank is BOA (for over 10 years), and Alliant for savings and super fast ACH on my checking there.

I can likely live with not being able to deposit a check from an app.

Does anyone here have specifics on checking/savings restrictions?

On the surface, Penfed looks like it could be a good fit for me. They have nice credit products, and they'd be likely to give me a good starting limit. However, I have very low tolerance for things that are inconvenient.