topic Re: Need advice on PenFed and accurate reporting in Rebuilding Your Credit

Need advice on PenFed and accurate reporting

eaglebay77 — Thu, 18 Dec 2025 22:16:18 GMT

I went through some medical stuff and had two PenFed cards charged off in 2022. I got a HELOC in July from a credit union and part of the requirement of it was that I pay those cards off.

I paid one card off after it went to a debt collector, and the other I settled with PenFed for half the balance. I applied for an auto refinance with that credit union recently. I received a phone call from them last week that I had an issue with one of the PenFed accounts still reporting a balance and as an open charge off. I received a letter on Tuesday that I needed to cure the default within 10 days or my HELOC could be accelerated due to me being in default. I did submit a dispute in August when it was still reporting, and again in October. I have now spent two hours on the phone over yesterday and today, and PenFed is still insisting that it is reporting correctly and have informed me twice that they will not report the account as settled.

I have the documentation that it was paid as part of a settlement, the receipt, etc. My HELOC lender is insisting my credit report must reflect this. How do I get PenFed to take care of this immediately? I have filed CFPB complaints, emailed the CEO, spent multiple hours on the phone... I had to cancel an appointment yesterday to try to resolve this and my client went through a new construction community and now the builder won't let me represent them... this is starting to cause me some very real headaches.

Re: Need advice on PenFed and accurate reporting

FicoMike0 — Fri, 19 Dec 2025 02:07:12 GMT

Sorry to hear this, sux to be you!

First question, have you checked annualcreditreport.com to see with your own eyes what's being reported? If I'd start there.

Which account is being reported and how? Charge off? With or without balance?

The next step is to determine if the report is correct, these things can be tricky. Maybe we can get someone like @JoeRockhead to comment.

Hope it works out.

Re: Need advice on PenFed and accurate reporting

eaglebay77 — Fri, 19 Dec 2025 17:06:34 GMT

I pulled the report yesterday. The account reads as charged off on both Transunion and Equifax with no notations about any payments. They reported the decreased balance after I paid it, but it still shows half the balance. Both bureaus are updating monthly as charged off, as well. Experian reports as "Account legally paid in full for less than full balance" and the worst derogatory status as "charged off" and stops reporting as a charge off in June.

Re: Need advice on PenFed and accurate reporting

GZG — Fri, 19 Dec 2025 17:44:32 GMT

@eaglebay77 wrote:
I pulled the report yesterday. The account reads as charged off on both Transunion and Equifax with no notations about any payments. They reported the decreased balance after I paid it, but it still shows half the balance. Both bureaus are updating monthly as charged off, as well. Experian reports as "Account legally paid in full for less than full balance" and the worst derogatory status as "charged off" and stops reporting as a charge off in June.

file a NUCA complaint

explain why their reporting is incorrect

explain what the payment history and reporting should look like

provide documented proof of that