Philadelphia Federal Credit Union
Philadelphia Federal Credit Union is a credit union headquartered in Philadelphia, Pennsylvania. As of September 30, 2024, it reported $1.71 billion in assets, making it the sixth-largest credit union in the Philadelphia region and the ninth-largest in Pennsylvania. PFCU operates 12 branches across the city and surrounding areas.
The institution has faced a series of controversies, including class action lawsuits over overdraft fees and repossession practices, a multimillion-dollar loss on a hotel loan in Bucks County, and a debit card security breach affecting hundreds of members.
Controversies
In July 2019, Philadelphia Federal Credit Union confirmed that a debit card security breach may have affected approximately 400 members. The credit union reissued cards and pledged reimbursement for affected accounts.In October 2019, a proposed class action lawsuit alleged that PFCU breached its account agreements by charging multiple non-sufficient funds fees for a single transaction.
In 2020, PFCU disclosed losses related to a $13 million commercial loan for the Wyndham Hotel in Trevose, Pennsylvania. The hotel lost its liquor license and was closed by the fire marshal amid unpaid taxes, wages, and utility bills. At the time of bankruptcy, PFCU reported being owed more than $12 million. The hotel, appraised at $24.5 million in 2018, sold at auction in 2020 for $7 million, leaving PFCU with an estimated loss of at least $5 million.
In October 2023, another class action was filed, alleging that the credit union’s repossession notices unlawfully inflated redemption amounts and misrepresented members’ rights under Pennsylvania law.
In June 2025, PFCU filed a breach-of-contract complaint in Pennsylvania state court. The case was entered on June 27, 2025.
Political Activity
Philadelphia Federal Credit Union maintains a connected Political Action Committee. In the 2023–2024 federal election cycle, it raised approximately $125,800, spent $69,628, and ended with $204,729 in cash on hand.The majority of expenditures were contributions to state and local political committees and candidates, with smaller amounts spent on fundraising and miscellaneous expenses.
Major Recipients
- Hasher for City Council — $21,000
- Friends of Brian O’Neill — $12,850
- Republican City Committee — $5,500
- Driscoll for Council — $4,250
- People for Parker — $2,900
- Friends of Pat Gallagher — $2,100
- Lisa Dahling — $1,950
- Jimmy’s Time Out — $1,783
- Dillion for Senate — $1,750
- Democratic City Committee — $1,500
Major Donors
PFCU-PAC’s funding comes largely from contributions by individuals and entities associated with the credit union. In the 2023–2024 cycle, the top 10 contributions of US$1,000 or more were:- Steve Sticco — $3,000
- Charles Zacney — $2,700
- Brian Rose — $2,150
- Driscoll for Council — $1,700
- William Levant — $1,500
- Raymond Longstreath — $1,450
- Michael McAllister — $1,300
- Larry Meador — $1,200
- Michael McAllister — $1,120
- Gary DeVito — $1,000
Michael J. McAllister, Esq., is listed as an emeritus member of PFCU’s Board of Directors—effectively a "board member for life."
This level of PAC activity is unusual for credit unions of comparable size, and transparency advocates have raised concerns about the potential for institutional influence in local politics.
Services
Philadelphia Federal Credit Union provides traditional credit union services including checking and savings accounts, consumer loans, mortgages, and credit cards. Credit cards are issued through Elan Financial Services, a third-party provider.The credit union also offers investment referrals through financial professionals affiliated with LPL Financial LLC, an independent broker-dealer.
PFCU promotes private student loans in partnership with Sallie Mae Bank and other lenders. Philadelphia Federal Credit Union is not the creditor for these loans but receives compensation from Sallie Mae for loan referrals.
Financials
As of September 30, 2024, PFCU reported US$1.71 billion in assets, US$201 million in equity, and net income of US$9.39 million.Financial trends
Recent net income figures show notable volatility:| Year | Net income |
| 2018 | 15.4 |
| 2019 | 17.8 |
| 2020 | 3.1 |
| 2021 | 19.6 |
| 2022 | 16.7 |
| 2023 | 10.3 |
| 2024 | 9.4 |
In total, net income fell in four of the past six years, with only a single large rebound in 2021, which was primarily attributed to post-COVID recovery and a low interest rate environment.
History
Philadelphia Federal Credit Union was founded on April 16, 1951, to serve Philadelphia municipal employees.During the late 20th century and early 2000s, PFCU expanded through a series of mergers, including with Temple Employees Federal Credit Union in 1983, Community Concern #13 FCU in 1989, Health & Human Service FCU in 1990, Afserco Staff FCU in 2004, and New Bethel AME FCU in 2012.
In the 2000s, PFCU broadened its services to include mortgages, credit cards, investment referrals, and private student loan partnerships with Sallie Mae.
By 2025, PFCU served over 120,000 members across 12 branches and reported $1.71 billion in assets.