PENFED CLOSED MY ACCOUNT

girlonmission · ‎02-03-2017

So PO right now. I just logged into Penfed and found out they had closed my personal loan account last week. Reasons:

Dear xxxxx,
In accordance with the authority contained in our agreement, a recent review of your PenFed credit line(s) of credit requires that it be closed to future access. Any PenFed line(s) of credit in your possession are now invalid.

This decision was based on prior delinquency with PenFed and/or another creditor. Additionally, we were unable to keep the account open for the following reason(s):
ACCOUNTS LAST REPORTED IN DELINQUENCY STATUS

Our credit decision was based in whole or in part on information obtained in a report from the consumer reporting agency listed below.

There was a collection filed on my equifax in september and I came to know about in November. Since then I had been fighight in equifax to take it off. The account was not mine, it belonged to another member of my family with the same name. I called equifax and I had filed dispute after dispute and each day after each dispute account came back verified. I called the collection agency and asked them to provide me with a letter saying they don't have an account with my social. the collection agency said they could not because they don't have an account. So finally this early this week and move fights with equifax they had removed the account.

Anyway can they do that? I know when they pulled the account they saw it was in dispute. Any thoughts? I am sure now it's going to show the account closed by creditor. Isn't that a bad marking? and it's going to drop my available credit. Also since opening the account back last summer, I never used it. So deliquency.

rmduhon · ‎02-03-2017

Closed by grantor isn't necessarily a bad thing, assuming it isn't charged off.

girlonmission · ‎02-03-2017

no charge off or anything. never even used the account, not one time. i have a checking and saving with penfed and was approved the line of credit when i open the checking and saving. i have auto deposit into checking weekly to avoid the monthly maintenance fee. I have no negative with PenFed or any other creditors beside the two collections I had which are now removed. my last baddy was 2015 for 2 student loans. I have come a long way and my credit and finance are of the priorities inmy life.

I called PenFed they put in a request to committee to see if they can get it reinstated. I guess we'll see. I just want it open because my uti is high right now on other cards, if that account is closed it will affect my revolving account limits and my score.

RobertEG · ‎02-03-2017

It is unclear to me what they mean by having closed your loan.

It is common to close revolving accounts, thus preventing the consumer from increasing the debt, and thus the risk to the creditor.

However, your debt is identified as an installment loan, which already has a clear and specified amount of credit provided to you.

You cannot unilateraly increase your indebetness, and you are still obligated under your account agreement to make the monthly installment payments.

Thus, it is unclear as to how it is "closed to future access."

Your account agreement will normally permit them to demand full repayment of a delinquent loan, but they have not done that.

I would call them and ask what they mean by having closed your account to access when you still owe them agreed payments.

girlonmission · ‎02-03-2017

Crisis adverted! yay!

Penfed just called me back. They said there is some glitch on their systems and my account should have not been flagged. I did ask how that is even possible since I have never even use the account since I had opened. They said they are looking into it. The good news is they have reopened the account. I asked them about what date is it going to show as open whether it is a today date or april last year. They said April's date. If they had said today's I will be like no thanks keep it closed. So I am gonna keep on eye on that too for the next month.

i am still shaking my head.

girlonmission · ‎02-03-2017

OK, just logged on to Penfed and the account is now showing. whew!

girlonmission · ‎02-04-2017

Wth!!!!! Just got an alert from Equifax. pPenfed pulled my credit. So not cool. I didn't not authorize this.

Anonymous · ‎02-04-2017

@girlonmission wrote:
Wth!!!!! Just got an alert from Equifax. pPenfed pulled my credit. So not cool. I didn't not authorize this.

They have a permisssable purpose for pulling your credit so they do not need additional permission from you to pull a report. The account they closed was it a PLOC if so then that would answer RobertEG's question.

Anonymous · ‎02-04-2017

1) Unfortunately, within your credit agreement you agreed to it probably authorizes them to pull credit without your permission each time

2) I'd contact them and request, that they flip that HP to a SP since you did not initiate an app for any additional credit not a CLI or anything...
They de facto conducted an AR, which is fine...They can AR daily if they like but HPing isn't fair and is actually detrimental to your profile

IMO they would HAVE TO either delete that HP or at minimum change it to a SP and all would be forgiven and we'd be friends again ( Not really, I'd be looking at replacing them in my portfolio...No way would I feel comfortable with flippant regard and Who's on 1st routine...As to what's next, in a month or 6 months from now...) But needing/ wanting the account open for profile purposes to obtain suitable replacements would cause a play nice attitude, for the moment 😇

Anonymous · ‎02-04-2017

@girlonmission wrote:
So PO right now. I just logged into Penfed and found out they had closed my personal loan account last week. Reasons:

Dear xxxxx,
In accordance with the authority contained in our agreement, a recent review of your PenFed credit line(s) of credit requires that it be closed to future access. Any PenFed line(s) of credit in your possession are now invalid.

This decision was based on prior delinquency with PenFed and/or another creditor. Additionally, we were unable to keep the account open for the following reason(s):
ACCOUNTS LAST REPORTED IN DELINQUENCY STATUS

Our credit decision was based in whole or in part on information obtained in a report from the consumer reporting agency listed below.

There was a collection filed on my equifax in september and I came to know about in November. Since then I had been fighight in equifax to take it off. The account was not mine, it belonged to another member of my family with the same name. I called equifax and I had filed dispute after dispute and each day after each dispute account came back verified. I called the collection agency and asked them to provide me with a letter saying they don't have an account with my social. the collection agency said they could not because they don't have an account. So finally this early this week and move fights with equifax they had removed the account.

Anyway can they do that? I know when they pulled the account they saw it was in dispute. Any thoughts? I am sure now it's going to show the account closed by creditor. Isn't that a bad marking? and it's going to drop my available credit. Also since opening the account back last summer, I never used it. So deliquency.

I think it's the OP's Thrifty or a PLOC account.