topic Re: Credit unions may not be safe once the CFPB funding is gone in General Credit Topics

Credit unions may not be safe once the CFPB funding is gone

crystal626 — Wed, 10 Dec 2025 00:37:01 GMT

I filed a complaint about PenFed to the NCUA about my credit card, expecting that the NCUA would act like the OCC does for many banks and handle my complaint. Instead, they forwarded it to the CFPB, saying that my complaint was outside of their regulatory purview. The CFPB is projected to run out of funding and effectively shut down at the end of the year. While people with banks can look up who to complain to on helpwithmybank.gov, the NCUA appears to have a very limited scope in their abilities to regulate credit unions, which means if you have a problem with your credit union, you may actually have no option to get a resolution. That's fun.

Re: Credit unions may not be safe once the CFPB funding is gone

pizzadude — Wed, 10 Dec 2025 00:49:30 GMT

Moving to General Credit

Re: Credit unions may not be safe once the CFPB funding is gone

crystal626 — Wed, 10 Dec 2025 02:16:04 GMT

@pizzadude wrote:
Moving to General Credit

But it was about credit cards? I think people should know that having credit cards with a CU might not be a safe choice soon. Hardly anyone will see it here.

Re: Credit unions may not be safe once the CFPB funding is gone

AndySoCal — Wed, 10 Dec 2025 04:28:58 GMT

The largest fines and some aggregious behavior have been by banK(s). if you are wondering who I am referring to it is TD Bank. I left Langley due a credit issue issue. The issue is in the credit card forum. My philosophy is I try to resolve the issue if it cannot be resolved to the satisfaction of both parties I cease to due business with whomever it is.

The issue you pointed out is a problem that needs time to be fixed.

Re: Credit unions may not be safe once the CFPB funding is gone

crystal626 — Wed, 10 Dec 2025 06:05:01 GMT

@AndySoCal wrote:
The largest fines and some aggregious behavior have been by banK(s). if you are wondering who I am referring to it is TD Bank. I left Langley due a credit issue issue. The issue is in the credit card forum. My philosophy is I try to resolve the issue if it cannot be resolved to the satisfaction of both parties I cease to due business with whomever it is.

The issue you pointed out is a problem that needs time to be fixed.

Yeah this issue with PenFed is particularly egregious in my book. They refuse to let me use my new checking account for payment unless I let their third party log into my account where they can monitor my transactions and balances indefinitely. Now, I deal with this with DCU, and I gave them access to my Navy Federal to avoid them having access to my old account, but PenFed specifically has a manual verification process with test deposits. When clicking to do that, it says it can't verify the account is mine before it even lets me get to the point of receiving the test deposits. Calling customer service, they have the same tools that the website does. So, I filed a complaint with the NCUA as it's ridiculous that more than 20 other credit card accounts took my info with no problem but PenFed seems to refuse to do so.

I guess I'm just going to have to leave PenFed but I hate to do that as they have tossed me multiple targeted spend offers in the last couple years that have really added value to the card. Hopefully PenFed gets back with me and fixes this so I don't have to do that. I suppose I could also just give them my Navy Federal info like I did with DCU if I have to but I really hate the privacy invasion that comes with this crap.

Re: Credit unions may not be safe once the CFPB funding is gone

hdporter — Wed, 10 Dec 2025 06:16:45 GMT

@crystal626 wrote:
I filed a complaint about PenFed to the NCUA about my credit card, expecting that the NCUA would act like the OCC does for many banks and handle my complaint. Instead, they forwarded it to the CFPB, saying that my complaint was outside of their regulatory purview.

Your concern is valid.

I just want to note that PenFed is outside of NCUA's purview, at least as far as addressing complaints. It is only responsible for addressing a FCU complaint re entities with no more than $10 mil in managed assets. (Penfed has $40+ mil)

Complaints outside its purview are referred to the applicable fed agency (presumably CFDB).

Source: https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/improving-process-consumer-complaints

Consumer Assistance Center Complaint Handling Process

NCUA’s Consumer Assistance Center is responsible for addressing consumer complaints involving federal credit unions (FCUs) with total assets up to $10 billion, and in certain instances, federally insured state-chartered credit unions (FISCUs).3

Complaints involving matters that do not fall within NCUA’s purview are forwarded to either the appropriate state supervisory authority or federal regulator for disposition.4"

Re: Credit unions may not be safe once the CFPB funding is gone

crystal626 — Wed, 10 Dec 2025 06:41:41 GMT

@hdporter wrote:
@crystal626 wrote:
I filed a complaint about PenFed to the NCUA about my credit card, expecting that the NCUA would act like the OCC does for many banks and handle my complaint. Instead, they forwarded it to the CFPB, saying that my complaint was outside of their regulatory purview.
Your concern is valid.

I just want to note that PenFed is outside of NCUA's purview, at least as far as addressing complaints. It is only responsible for addressing a FCU complaint re entities with no more than $10 mil in managed assets. (Penfed has $40+ mil)

Complaints outside its purview are referred to the applicable fed agency (presumably CFDB).

Source: https://ncua.gov/regulation-supervision/letters-credit-unions-other-guidance/improving-process-consumer-complaints

"
Consumer Assistance Center Complaint Handling Process
NCUA’s Consumer Assistance Center is responsible for addressing consumer complaints involving federal credit unions (FCUs) with total assets up to $10 billion, and in certain instances, federally insured state-chartered credit unions (FISCUs).3
Complaints involving matters that do not fall within NCUA’s purview are forwarded to either the appropriate state supervisory authority or federal regulator for disposition.4"

I wasn't aware of the $10BB limitation. From doing a brief search it seems that without the CFPB, there is no regulator that handles complaints about larger credit unions so yeah, my concern is valid. Yikes.

"4Consumer complaints involving federal financial consumer protection laws and against credit unions with total assets over $10 billion are handled by the Consumer Financial Protection Bureau (CFPB). Complaints forwarded to the Consumer Assistance Center from state supervisory authorities or other federal regulators, including CFPB, are handled in accordance with the procedures described in this letter."

Re: Credit unions may not be safe once the CFPB funding is gone

TrapLine — Wed, 10 Dec 2025 11:28:54 GMT

@crystal626

Following your challenge ...

Note however, with the state of our Federal Level, you are flogging a dead horse. As has been suggested and I for one did walk away from PenFed, the time may be here for you.

It is a pain but sometimes we need to just pick our battles. This appears to be one that we cannot win. Personally, I have gotten really picky and if a commercial bank or credit union has many reported dusts up on this site, I do not even consider them anymore. Not worth it.

Some financials have great products but we are hand strung on how to pay, their websites, constantly changing the terms and conditions, rewards etc. Really want to join the State Capital Federal Credit Union but, I keep running into those who have had challenges and I just let it go. Found a different CU that is in my state (geo-restricted) that is top shelf and smile all the way to the bank.

Best of luck! An old phrase comes to mind: "Caveat Emptor" (buyer beware).

Re: Credit unions may not be safe once the CFPB funding is gone

AndySoCal — Wed, 10 Dec 2025 15:10:48 GMT

@crystal626 For me I would solve the problem via bill pay I would set up the account there and put in the amount to be paid. I have only one checking account unlike many on the forum that have several. Their policy could be considered invasion of privacy and or very annoying but it is anything that not within regulations. I know of other financial institions ( due my job I cannot name them) whose policies on opening an new savings account is above and beyond anything I would tolerate. The purpose of the check that they do is a fraud prevention measure.

Re: Credit unions may not be safe once the CFPB funding is gone

crystal626 — Wed, 10 Dec 2025 22:52:39 GMT

@AndySoCal wrote:
@crystal626 For me I would solve the problem via bill pay I would set up the account there and put in the amount to be paid. I have only one checking account unlike many on the forum that have several. Their policy could be considered invasion of privacy and or very annoying but it is anything that not within regulations. I know of other financial institions ( due my job I cannot name them) whose policies on opening an new savings account is above and beyond anything I would tolerate. The purpose of the check that they do is a fraud prevention measure.

I suppose that ultimately may be the route that I go. Affinity seems to offer a nice bill pay feature that recognizes PenFed. It's just really irksome that they're allowed to dictate how I pay. It really feels like PenFed is trying to force me to give up direct access to my account balances and transactions. Every other bank/CU that wanted to do test deposits did them but PenFed refuses to. If Social Security was able to verify the account was mine and expedite the change of my direct deposit, and US Bank was able to *instantly* confirm the account was mine despite being warned it would take a few days to verify ownership right before I even added the account, then clearly it's in my name and PenFed should have no issue verifying with test deposits.

Re: Credit unions may not be safe once the CFPB funding is gone

JamesS84 — Wed, 10 Dec 2025 23:43:25 GMT

Interesting…I hadn’t thought about that. You could still complain to the FTC and on social media I guess.

Re: Credit unions may not be safe once the CFPB funding is gone

AndySoCal — Thu, 11 Dec 2025 02:23:28 GMT

@crystal626 There two things Financial Institutions are told to do in broad brush strokes. The first is know your customer the second one is due diligence . The first one at times annoying but necessary. For the most part out financial activity is the same month over month. US Bank representative asked me if I wanted to update my profile. For about a half hour so I was asked questions. Some that was on profile was true then but not when the profile was being updated. Some stuff that should have been on the profile was not but it was added. At the time I considered the process annoying. A few months later a fraudulent transaction (Stolen check being cashed in branch) was caught before it was cashed. Caught because the note on the memo line did note match my profile. Further more the branch manager called me to verify the transaction (due diligence). Then I was quite happy I had updated my profile.

Re: Credit unions may not be safe once the CFPB funding is gone

crystal626 — Thu, 11 Dec 2025 04:08:22 GMT

@AndySoCal wrote:
@crystal626 There two things Financial Institutions are told to do in broad brush strokes. The first is know your customer the second one is due diligence . The first one at times annoying but necessary. For the most part out financial activity is the same month over month. US Bank representative asked me if I wanted to update my profile. For about a half hour so I was asked questions. Some that was on profile was true then but not when the profile was being updated. Some stuff that should have been on the profile was not but it was added. At the time I considered the process annoying. A few months later a fraudulent transaction (Stolen check being cashed in branch) was caught before it was cashed. Caught because the note on the memo line did note match my profile. Further more the branch manager called me to verify the transaction (due diligence). Then I was quite happy I had updated my profile.

Here's the issue though. They are going against their own system. The system has two options. You can verify with test deposits or you can give access to Finicity to check your accounts. They aren't even letting me get to the test deposits stage. Every other bank/CU that couldn't instantly verify me did test deposits. It really just feels like they're trying to bully me into giving ongoing access to my account balances and transactions.

Re: Credit unions may not be safe once the CFPB funding is gone

AndySoCal — Thu, 11 Dec 2025 04:55:12 GMT

@crystal626 Billpay may not be the proffered method to use when making payments on credit card. I'm my opinion it is the best alternative course of action.

Re: Credit unions may not be safe once the CFPB funding is gone

TrapLine — Fri, 12 Dec 2025 15:55:21 GMT

@crystal626

Get a sheet of 8 1/2 x 11 inch piece of paper and draw three different sized circles on it, tape it at head height to the wall, and start banging your head.

Based on all the challenges you have with PenFed ... find another financial! You have had plenty of comments on this Forum and in reading around on the MyFico Forum you will see, others have been challenged by PenFed including myself. As I said, I walked!

Life is to short to waste any more energy on PenFed. They are a waste of time.

There are better solutions in the financial world and you know your fellow MyFico Posters will help you screen a potential if you so desire.

Re: Credit unions may not be safe once the CFPB funding is gone

TrapLine — Fri, 12 Dec 2025 15:58:06 GMT

@JamesS84

The world of protection from various Federal Agencies are no longer available. The Senior Federal Leadership has eliminated funding for most and released the employees so help is only a word in the dictionary.

Re: Credit unions may not be safe once the CFPB funding is gone

crystal626 — Fri, 12 Dec 2025 20:35:54 GMT

@TrapLine wrote:
@crystal626

Get a sheet of 8 1/2 x 11 inch piece of paper and draw three different sized circles on it, tape it at head height to the wall, and start banging your head.

Based on all the challenges you have with PenFed ... find another financial! You have had plenty of comments on this Forum and in reading around on the MyFico Forum you will see, others have been challenged by PenFed including myself. As I said, I walked!

Life is to short to waste any more energy on PenFed. They are a waste of time.

There are better solutions in the financial world and you know your fellow MyFico Posters will help you screen a potential if you so desire.

I really only use them when they send me targeted offers. Otherwise it's just $25K of padding and the card stays locked so as not to be a fraud risk. It's my third largest card, closing it would be a big hit to my total credit and average credit limits so I would prefer not to do that.

Re: Credit unions may not be safe once the CFPB funding is gone

Thomas_Thumb — Sat, 13 Dec 2025 22:46:14 GMT

@TrapLine wrote:
@crystal626

Get a sheet of 8 1/2 x 11 inch piece of paper and draw three different sized circles on it, tape it at head height to the wall, and start banging your head.

Life is to short to waste any more energy on PenFed. They are a waste of time.

@TrapLine

Just to clarify - Do the circles need to be concentric?

Re: Credit unions may not be safe once the CFPB funding is gone

TrapLine — Sun, 14 Dec 2025 02:10:32 GMT

@Thomas_Thumb

Just to clarify - Do the circles need to be concentric?

That was guud ...

Re: Credit unions may not be safe once the CFPB funding is gone

AndrewF — Mon, 16 Feb 2026 05:24:08 GMT

@crystal626 wrote:
I filed a complaint about PenFed to the NCUA about my credit card, expecting that the NCUA would act like the OCC does for many banks and handle my complaint. Instead, they forwarded it to the CFPB, saying that my complaint was outside of their regulatory purview. The CFPB is projected to run out of funding and effectively shut down at the end of the year. While people with banks can look up who to complain to on helpwithmybank.gov, the NCUA appears to have a very limited scope in their abilities to regulate credit unions, which means if you have a problem with your credit union, you may actually have no option to get a resolution. That's fun.

I don't like Credit Unions but I particularly don't like the ones that don't have "federal" in their name somewhere, because they can buy private insurance and then your money is backed by an insurance company regulated by Ohio or something, instead of the federal government.

My mom opened an account at one of these places, and if you want to see something even less regulated than an NCUA credit union, there you have it.