Philadelphia Federal Credit Union
| Company type | Credit union |
|---|---|
| Industry | Financial services |
| Founded | April 16, 1951 in Philadelphia, Pennsylvania, United States |
| Headquarters | Philadelphia , United States |
Area served | Philadelphia metropolitan area and surrounding communities |
| Products | Checking accounts, savings accounts, consumer loans, home mortgages, credit cards, investment guidance, private student loans |
| Website | www |
Philadelphia Federal Credit Union (PFCU) is a financial cooperative based in Philadelphia, Pennsylvania. As of September 30, 2024, the credit union reported assets totaling $1.71 billion, making it the sixth-largest credit union in the Philadelphia metropolitan area and the ninth-largest within the state of Pennsylvania. PFCU maintains a network of 12 branch locations throughout Philadelphia and its surrounding communities.
The credit union has encountered several disputes, including class action lawsuits related to overdraft fee policies and vehicle repossession procedures, a significant financial loss stemming from a commercial hotel loan in Bucks County, and a security incident involving debit card information that impacted numerous members.
Controversies
In July 2019, PFCU acknowledged a security incident involving debit card data that affected approximately 400 account holders. In response, the credit union issued replacement cards and reimbursed those members whose accounts were compromised.
A class action lawsuit filed in October 2019 (*Dailey v. Philadelphia Federal Credit Union*) accused PFCU of imposing multiple non-sufficient funds (NSF) fees for a single transaction, which allegedly violated the terms outlined in member account agreements.
In 2020, PFCU reported financial setbacks linked to a $13 million commercial loan issued for the Wyndham Hotel located in Trevose, Pennsylvania. The hotel ceased operations after losing its liquor license and failing to pay taxes, employee wages, and utility bills. At the time of bankruptcy proceedings, PFCU was owed over $12 million. However, the hotel was auctioned for $7 million—far below its 2018 appraised value of $24.5 million—resulting in an estimated loss exceeding $5 million for the credit union.
Another class action suit was initiated in October 2023 (*Cook et al. v. Philadelphia Federal Credit Union*), alleging that PFCU’s repossession notices unlawfully exaggerated redemption amounts and misrepresented members’ rights under Pennsylvania state law.
In June 2025, PFCU pursued legal action by filing a breach-of-contract lawsuit (*Philadelphia Federal Credit Union v. McDaniels*) in Pennsylvania’s state court system; this case was officially docketed on June 27, 2025.
Political Activity
Philadelphia Federal Credit Union manages a Political Action Committee (PFCU-PAC), which raised approximately $125,800 and expended $69,628 during the 2023–2024 federal election cycle. By the end of this period, the PAC held $204,729 in cash reserves. Nearly 92% of these expenditures were directed toward supporting candidates and committees at the state and local levels; the remaining funds covered fundraising efforts 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 (treasurer) — $1,950
- Jimmy’s Time Out (fundraiser) — $1,783
- Dillion for Senate — $1,750
- Democratic City Committee — $1,500
Major Donors
The majority of contributions come from individuals and organizations affiliated with PFCU. Among donors who gave $1,000 or more during the 2023–2024 cycle are:
- 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 — two donations totaling $2,420
- Larry Meador — $1,200
- Gary DeVito — $1,000
Notably, Driscoll for Council appears both as a recipient and contributor to the PAC—a legally permissible but often scrutinized reciprocal transaction. Michael J. McAllister, Esq., an emeritus member of PFCU’s board of directors, ranks among the top donors.
This degree of PAC involvement is atypical for credit unions of comparable size and has prompted discussions concerning potential institutional influence within local political spheres.
Services
Philadelphia Federal Credit Union delivers a range of conventional credit union products, such as checking and savings accounts, consumer lending options, home mortgages, and credit cards issued in collaboration with Elan Financial Services.
Investment guidance is available through financial advisors connected to LPL Financial LLC, an independent broker-dealer associated with the credit union.
Additionally, PFCU offers private student loan options in alliance with Sallie Mae Bank and other financial institutions, earning referral fees for these loans while not acting as the direct lender.
Financials
As of September 30, 2024, Philadelphia Federal Credit Union reported total assets amounting to US$1.71 billion, equity of US$201 million, and a net income of US$9.39 million.
Financial trends
The net income figures have exhibited fluctuations over recent years:
| Year | Net income (US$ M) |
|---|---|
| 2018 | 15.4 
|
| 2019 | 17.8
|
| 2020 | 3.1 
|
| 2021 | 19.6
|
| 2022 | 16.7
|
| 2023 | 10.3
|
| 2024 | 9.4
|
Over the last six years, net income has fallen in four periods, with a notable recovery in 2021 attributed to the post-pandemic economic rebound and favorable low interest rates.
History
Established on April 16, 1951, Philadelphia Federal Credit Union initially served municipal employees of Philadelphia.
The credit union grew through mergers with Temple Employees FCU 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.
Throughout the 2000s, PFCU broadened its product lineup to include mortgage loans, credit card services via Elan Financial Services, investment referrals through LPL Financial, and private student loans offered in partnership with Sallie Mae.
By the year 2025, PFCU had expanded its membership to over 120,000 individuals across twelve branch locations and reported assets totaling $1.71 billion.