Date Received: 2023-07-28
Issue: Problem with a purchase shown on your statement
Subissue: Credit card company isn't resolving a dispute about a purchase on your statement
Consumer Complaint: In XX/XX/XXXX of 2023, I purchased a pair of XXXX luxury sneakers from XXXX. The shoes were marketed as authentic pair of XXXX shoes priced at {$330.00} plus {$90.00} in extra fees, for a total of {$420.00}. The shoes were shipped on XX/XX/XXXX and arrived to me a few days later. The shoes arrived absent of a size tag, within the shoe and the size, label and necessary information was ripped from the box. I questioned the authenticity and called the XXXX manufacturer. The manufacturer exclaimed that the shoes should have a 'product code ' that proves authenticity AND also the size should be listed AND whether it is a women 's shoe. I contacted the merchant and through a series of about 8 emails and photos exclaimed that I was dissatisfied with the product due to the shoe being TWICE the size of a women 's size 10 AND also the authentication markers were missing as per the manufacturer. I exchanged about 7 emails with the merchant, as they requested evidence that my claim was true. I detailed my dissatisfaction with the authenticity and also shared pictures of a women 's measured size US 10 as verification that this was not the item as described and I was unhappy with what was sent to me. The merchant finally sent an email WHILE I was away, they acknowledged fault and agreed to a refund under strict provisions that I pay more fees to return the item AND there was NO guarantee that I would receive a refund EVEN if I sent the merchandise back and had not followed a series of rules about the time frame AND also reporting a tracking number and emailing details to them. I was uncertain that I would receive a FULL refund for the counterfeit item without encountering addiitional FEES, so I involved my card company. The merchant agreed to the faulty merchandise, asked me to resend within 48 hours ( I was away ) and also mentioned NOT giving a refund had I not met their demands. I am happy to return WITH a guarantee of a refund. I called into NAVY FEDERAL to ask what should I do, I was told to try and settle the matter with the merchant. After so many emails, I decided to go into NAVY FEDERAL credit Union to dispute my claim and submit 8 pages of evidence. I was originally told i could not be seen by an employee EVEN while the telephonic process was ineffective. Later a manager called me to apologize for the fact that I had to return at a later date due to be denied service on a Friday. She exclaimed that they usually only service mortgages in the bank. I went in person ALSO because I was asked to upload the documents and the site didn't offer enough room for upload. Even after I visited the bank, submitted the paperwork through an associate the still failed to acknowledge receipt of my claim. They did NOT offer a temporary credit on the account and claimed they NEVER received the 8 page document of emails sent in my presence. Later I uploaded the documents and exclaimed my dissatisfaction with the product sent to me and how it had not met the standards described in the original agreement between self and merchant. Navy took two weeks, without further contact with me and closed the dispute with this reply " " We investigated your {$420.00} credit card claim against XXXX and didn't find an error based on : There was not enough supporting documentation or evidence to move forward in the dispute process. Please provide details regarding the return : shipping company used to return the merchandise and the return tracking number. '' As of the date of this notification, we closed your claim. '' I submitted documentation and pictures showing that this shoe was NOT a women 's size 10, the authentication labels had been removed from the shoebox, there was no size inside the shoe, and that the originally manufacturer stated that this shoe in order to check for counterfeit MUST have a product code for authentication purposes. After asking NAVY to investigate properly and consider the photos and merchants acceptance of wrong doing they closed my case without fully holding the merchant accountable for sending subpar goods that did not match the advertised product and failed to meet the standard set forth by the original manufacturer. The merchant did not prove that the item was otherwise counterfeit as it did not display the authenticity the product manufacturer described. I would like a full refund and I can return with the garneted that the merchant will not make picayune reasons why I am not entitled to a full refund for an item that is NOT a women 's sized 10 shoe as advertised. XXXX has a strict rule against counterfeit items purchased online and NAVY failed to investigate and rectify the matter fully and with diligence, simply dismissing my case without a full scope investigation
Company Response: Company believes it acted appropriately as authorized by contract or law
State: PA
Zip: 190XX
Submitted Via: Web
Date Sent: 2023-07-28
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-26
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: In accordance with the fair credit reporting act, this creditor ( navy federal credit union ) has violated my rights. Under 15 usc 1681section 602. States I have the right to privacy. 15 usc 1681 section 604A section 2 also states a consumer reporting agency can not furnish an account without my written instructions. Under 15 uscs 1666 b, a creditor may not treat a payment on a credit card account under an open and consumer credit plan as late for any purpose.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 33033
Submitted Via: Web
Date Sent: 2023-07-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-26
Issue: Money was not available when promised
Subissue:
Consumer Complaint: In XXXX, I sent XXXX to my contractor from my business account XXXX XXXX XXXX at XXXX XXXX XXXX to my contractor 's business account - XXXX XXXX XXXX at Navy Federal Credit Union. Owner of account is XXXX XXXX. Because she wasn't able to receive the funds, I did a wire recall with XXXX wire department. After months of waiting, I decided to do a XXXX report and XXXX was able to get the funds back, upon receipt, they said Navy requested the funds back, I called my contractor and she said she never did a recall to get it back. XXXX has sent my funds to navy and Navy is stating it was sent the wrong way so they are holding on to my funds- which is theft!!! I've been waiting for a few months for this to be resolved and it isn't so now I'm reporting Navy Federal for stealing my MONEY!! XX/XX/XXXX XXXX XXXX sent my funds back to Navy Federal, below is the info : IMAD # : XXXX TRN # : XXXX The original case # with XXXX is : XXXX I would like to know where my funds XXXX sent to Navy is and I want Navy to send them back to my Business XXXX account so XXXX can give me my funds!! This has caused me pain, suffering, and stress for my business. I am reporting Navy and XXXX for not resolving this matter. Thanks
Company Response: Company believes it acted appropriately as authorized by contract or law
State: NC
Zip: 28278
Submitted Via: Web
Date Sent: 2023-07-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-26
Issue: Managing an account
Subissue: Deposits and withdrawals
Consumer Complaint: At XXXX on XXXX XX/XX/2023, I received what appeared to be a fraud alert from Navy Federal Credit Union ( NFCU ). I have attached the screenshot of the text message I received. The text was fraud alert asking if I had attempted to transfer {$100.00}, {$500.00}, and {$200.00} through XXXX and to reply " yes '' if I authorized the charge and " no '' if I did not. I replied " no '' as I don't utilize XXXX and did not authorize those transactions. I received a reply that a representative would be giving me a call shortly. I looked up the phone number for NFCU fraud department ( XXXX ). I started to call the NFCU fraud department at XXXX but a customer had walked in where I worked. I assisted the customer at my work and started to call them again when I noticed that I was receiving a phone call from them ( see attached call log ). I received the phone call from a XXXX American gentleman who introduced himself as a NFCU representative from the fraud department. Note that they called me from the NFCU phone number ( call log attached ). The gentleman asked to speak with me and I stated that he was talking to me. He stated that there were some unusual transaction on my account and glad that he was able to catch those from me. He told me that he needed to send me a verification code and for me to read it off to him. I received the NFCU verification code via my XXXX e-mail address and read it off to him. He told me that he was going to place me on a brief hold while he looks at my account to see what was compromised. I was placed on hold with the waiting music. We became disconnected around XXXX. I was getting ready to call the fraud department back but the representative from NFCU called me right back at XXXX. He apologized for getting disconnected and stated he was still looking into my account. He asked me if I would like to remove the XXXX capability from my bank account. I replied that I did because I do not utilize XXXX and that is what compromised my account. He said he would gladly do that for me and sent me another verification code and I read it off to him. He then placed me on a brief hold while he takes care of that. He then came back off hold and told me that he had to reset my account because it was compromised and sent me another verification code. We became disconnected at XXXX. The NFCU representative called me back at XXXX and I read off the verification that I received and he placed me on hold again. He came back off hold and told me that he was still working on resetting my account and placed me on hold again. We became disconnected at XXXX. I started to call back the NFCU fraud department at XXXX and I noticed that the fraud department was calling me back at XXXX so I switched over to answer the phone call. He apologized for the disconnect again and told me that he was finishing resetting my account. He placed me on hold again and then came back on the line. We became disconnected again at XXXX. I waited about 5 minutes to see if they would call me back. I called the NFCU phone number at XXXX and that is when I found out that I had never spoke with a NFCU representative. It was a scammer that had that taken over my account, took out a {$8500.00} loan, set up ( 3 ) member-to-member transfers, had the loan deposited into my checking account, and transferred all of the loan money and what was in my checking account. NFCU froze me account and marked the loan as fraud and told me to call back the next day to start the fraud claims because the transactions need to post. I called NFCU the following day on Friday XXXX XX/XX/2023 at XXXX CST. The lady who answered the phone stated that I need to talk to the security department and they didn't get in until XXXX EST. I called NFCU back at XXXX to speak with the Security department at NFCU. A male representative from the Security department answered and started inferring that I should have known better and noticed that this was a scam. I felt really embarrassed by his comments and felt that it wasn't normal for a bank to be victim shaming. I also felt that if NFCU Security was better I wouldn't be in this position. Someone was able to take out a {$8500.00} loan without showing identification or providing any signatures ( this is what I learned from the fraud department lady the night before on XXXX XX/XX/2023 when I talked with her from XXXX. He walked me through how to install the latest security update on my apple i-phone. He also told me that the scammer had my full SSN and date of birth so I would need to take identity theft actions. He sent me an e-message with how to move forward with precautions with identity theft ( report to FTC, freeze/lock credit with all ( 3 ) credit bureaus, initial fraud alert with all ( 3 ) credit bureaus, etc. He then transferred me to the NFCU fraud department. The fraud department closed my savings and checking that the scammer stole all my money from and opened a new account. They told me that I could submit an affidavit for the fraudulent loan and either mail it in or turn it into a local branch and they can scan and upload it. They told me to call back the next day as the transactions from the transfer of money out of my checking and savings had not posted yet. I inquired if the the transactions show posted because I was able to login with new credentials to my new account and saw that the transfer transactions have posted. They placed me a hold to talk to my manager and stated that I would just have to call back tomorrow. I inquired if the transactions haven't posted why can't they just stop the transactions and they told me that they can't do that because the funds have already left the account and the system just needs to catch up. I inquired about provisional funding as I read that it may be possible to get provisional funding on the affidavit. They stated they can not give me provisional funding but gave me a {$50.00} credit to my new account to help out. I was on the phone for 1 hour and 46 minutes with NFCU. On XXXX XX/XX/2023 I turned in the affidavit for the loan into the NFCU XXXX, IL branch and the lady scanned and uploaded the affidavit into their system and printed me a new debit card for my new checking account. Also, on XXXX XX/XX/2023 I made a FTC report and was given a task checklist to work on for identity theft. On XXXX XX/XX/2023, I froze/locked all credit from all ( 3 ) credit bureaus and did an initial fraud alert for all ( 3 ) credit bureaus that will be good for 1 year. On the following day, XXXX XX/XX/2023 I called NFCU at XXXX CST and started the fraud claim for my checking and savings account. The lady I spoke with told me that she submitted the fraud claim and that it would take 6 months to complete and investigation and once the investigation was complete then I would receive a response on the claim. On XXXX XX/XX/2023, I submitted the FTC dispute letters to NFCU via their e-message portal. I sent one FTC dispute letter for the fraudulent loan and one FTC dispute letter along with the FTC Notice to Furnishers for both submissions. I called NFCU at XXXX on XXXX XX/XX/2023 to get an update on the fraud claims for the fraudulent loan and the fraud claim for the checking/saving accounts. The NFCU female representative stated that the claims have been submitted and it will take 6 months to go through the investigation and the claim completed. Once the claim is completed in 6 months I will received a letter with the finding. I inquired if I had additional evidence that I could provide such as the text message from the scammer, police report, etc. how I would be able to get that over to them so that I can assist with the claim to go through. She instructed me to utilize the e-message system but it will still take 6 months. She also stated that within the next month I will need to start making payments on the fraudulent loan. I inquired why I had to pay for a loan that I didn't take out that was already marked as fraud. She replied that if I didn't make the payments on the fraudulent loan during this time they will report me to the credit bureaus and my credit will be ruined. She did state that if the claim comes back after it is completed they will pay me back everything I paid towards the loan. I asked her if it will truly take 6 months to complete the claims and investigation and she said yes. I asked if they are federally insured ( FDIC ) why I had to take the loss as a victim of fraud and not the bank take the loss. The female representative said that I have to be able to prove my innocence before I can receive any money back and that they can not gurantee that I receive all of my money back that I lost. Today, XXXX XX/XX/2023. I submitted additional evidence ( the text message that was a scam posed as a NFCU fraud alert that contained the phone number of the scammer ) for the claim and called NFCU to receive an update at XXXXCST. I inquired if I could receive an update on my fraud claims and the gentlemen stated that they are getting worked. I inquired how do I know they are actually working on my claim as I have been working tirelessly to provide all evidence I can for them and work through identity theft and trying to figure out what to do financially as all my money has been stolen from me. The gentlemen on the phone stated that if I sent the message its getting worked and I told him that this wasn't good enough and I needed an answer. I have ( 3 ) kids and I have bills to pay and mouths to feed and I have no money because that person stole everything. They told me that the fraud claims are a process and I just have to wait. I inquired if there was anything else I can do and they told me to just wait but they would mark my fraud claims as urgent so that maybe I will get it rectified before 6 months. After the phone call with NFCU I called the phone number that I received the scam text from off of my government cell phone and the same XXXX American male answered the phone. I had my government phone on mute and didn't interact because I don't want to ruin the investigation. Today I am filing this report, contacting the FBI fraud hotline, my security manager for my Command ( XXXX XXXX XXXX XXXX ) is reaching out to the NCIS fraud department, going to my local police department to complete my police report and start researching for a lawyer. I have opened a separate bank account because I no longer trust NFCU with anymore money. I have been victim shamed, told to wait 6 months, they denied provisional funding, and told me I have to prove my innocence when I'm already a victim. To be treated by my bank in this manner has been extremely stressful and has caused a lot of trauma to my family. I don't know how we are supposed to survive with no money until pay day ( in 2 weeks ), but I know that NFCU isn't willing to work with me.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: IL
Zip: 60046
Submitted Via: Web
Date Sent: 2023-07-26
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-26
Issue: Attempts to collect debt not owed
Subissue: Debt was result of identity theft
Consumer Complaint: I have been back and forth between Navy Federal, XXXX, and XXXX about this matter. This debt is still reporting on XXXX and I have received documentation from Original Creditor Navy federal stating that after an investigation done by them, they have found this debt as a result of identity theft. It has been well over 60 days but is still reporting under XXXX. I am still being denied my retirement home because of this and it has caused great distress because of it. They refuse to remove it off of XXXX and XXXX has not removed it either as of today XXXX. Please provide me with resources to file a suit against these companies for not removing it.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: GA
Zip: 30024
Submitted Via: Web
Date Sent: 2023-07-26
Company Response to Consumer: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-26
Issue: Improper use of your report
Subissue: Reporting company used your report improperly
Consumer Complaint: According to the Fair Credit Reporting Act 15 USC 1681 section 602 a states There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer 's right to privacy. '' XXXX, XXXX and XXXX are consumer reporting agencies and I am the Consumer. I have the right to make sure my private information isn't shared which is backed by 15 USC 6801 which states " It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of it's customers and to protect the security and confidentiality of those customers ' nonpublic personal information. " ( Furnisher of information to credit agencies ) is a financial institution by definition under that title. 15 USC 1681 section 604 a section 2 states that " In general Subject to subsection ( c ), any consumer reporting agency may furnish a consumer report under the following circumstances and no other : in accordance with the written instructions of the consumer to whom it relates. '' ( Furnisher of information to credit agencies ) the financial institution and the Consumer reporting agencies XXXX, XXXX and XXXX do not have my consent to furnish this information and they surely do not have my written consent. Any and all consent to XXXX, XXXX and XXXX, ( Furnisher of information to credit agencies ) whether it be verbal, non-verbal, written, implied or otherwise is revoked. 15 USC 6802 ( b ) ( c ) states that " A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless -- the consumer is given an explanation of how the consumer can exercise that nondisclosure option. '' ( Furnisher of information to credit agencies ) Never informed me of my right to exercise my nondisclosure option. Not only that 15 USC 1681C ( a ) ( 5 ) states " Except as authorized under subsection ( b ), no consumer reporting agency may make any consumer report containing any of the following items of information Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years. '' This account is an adverse item they are reporting again without my permission which is against the law. 15 U. S. Code subsection 1681 s-2 ( A ) ( 1 ) A states A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. 15 U.S.Code subsection 1681e states " Every consumer reporting agency shall maintain reasonable procedures designed to avoid violations of section 1681 c of this title and to limit the furnishing of consumer reports to the purposes listed under section 1681b of this title. '' XXXX, XXXX and XXXX are not maintaining reasonable procedures. Also 12 CFR subsection 1016.7 states that " A consumer may exercise the right to opt out at any time. '' I am opting out of your reporting services. ''
Company Response: Company believes it acted appropriately as authorized by contract or law
State: MO
Zip: 63366
Submitted Via: Web
Date Sent: 2023-07-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-26
Issue: Incorrect information on your report
Subissue: Account information incorrect
Consumer Complaint: Navy Federal is reporting inaccurate information on my credit reports. On XXXX, they are reporting that I owe {$150.00}, with a high balance of {$210.00}. On XXXX they are reporting a high balance of {$570.00} with a balance due of {$150.00}. On XXXX they report a high balance of {$0.00} and past due of {$150.00}. All the dates of activity and payment dates are also different on each credit report. I've disputed the account as inaccurate several times and have gotten nowhere. Navy Federal has been automatically withdrawing money from my bank account, so none of the information being reported is accurate. I'd like the information accurately reported or removed from my credit report.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: OH
Zip: XXXXX
Submitted Via: Web
Date Sent: 2023-07-26
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-25
Issue: Managing an account
Subissue: Problem using a debit or ATM card
Consumer Complaint: My wallet was lost and was use to purchase fraudulent items that was not done by me. This is a very frustrating moment. And would like a more thorough investigation to be conducted because my card was lost. There was XXXX XXXX transactions in the amounts of {$5100.00}
Company Response: Company believes it acted appropriately as authorized by contract or law
State: FL
Zip: 33127
Submitted Via: Web
Date Sent: 2023-07-25
Company Response to Consumer: Closed with monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-25
Issue: Trouble during payment process
Subissue:
Consumer Complaint: I received my Annual Escrow Analysis on XX/XX/2023. My lender, Navy Federal Credit Union advised the amount applied to escrow needed to increase to satisfy the anticipated escrow disbursements for the following year. The amount quoted was {$2000.00}. I was given the option to pay that figure in full or pay the amount over a 12 month period with an increased monthly mortgage payment. The new payment schedule was to begin on XX/XX/2023. On XX/XX/2023, I paid the full escrow " shortage '' of {$2000.00} in addition to my regular monthly payment of {$1500.00}. Navy Federal mailed a new monthly mortgage invoice on XX/XX/2023 acknowledging the additional escrow payment and my regular monthly payment but still noted I was due to make the increased monthly payment of {$1800.00} on XX/XX/2023. I called Navy Federal on XX/XX/2023 and requested explanation for the increased payment. If I have paid the escrow in full, there should not be an increase of my monthly payment. The representative could not provide any other explanation other than, there are other fees they account for that may need to be paid. I asked for examples and she provided only " if '' a special tax assessment is made. I explained those are sent to the homeowner and not the mortgage company. I also asked for the correct escrow amount as I did not want my payment to increase. She could not provide that amount but also did not offer to return the additional escrow payment. I requested a return call from a manager or supervisor. As of the date of this complaint, I have not received additional communication from Navy Federal.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: VA
Zip: 23222
Submitted Via: Web
Date Sent: 2023-07-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Date Received: 2023-07-25
Issue: False statements or representation
Subissue: Attempted to collect wrong amount
Consumer Complaint: Navy Federal Credit Union terminated my consumer account with a balance of XXXX remaining that I have since requested payment for. Navy Federal keeps attempting to collect XXXX from me which is a violation of federal law. Navy Federal Credit Union and it's subsidiary were notified via registered mail that I would like to redeem my payment and securities. 12 CFR 1026.11 - Treatment of credit balances ; account termination. 1026.11 Treatment of credit balances ; account termination. ( a ) Credit balances. When a credit balance in excess of {$1.00} is created on a credit account ( through transmittal of funds to a creditor in excess of the total balance due on an account, through rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for the benefit of the consumer ), the creditor shall : ( 1 ) Credit the amount of the credit balance to the consumer 's account ; ( 2 ) Refund any part of the remaining credit balance within seven business days from receipt of a written request from the consumer ; ( 3 ) Make a good faith effort to refund to the consumer by cash, check, or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than six months. No further action is required if the consumer 's current location is not known to the creditor and can not be traced through the consumer 's last known address or telephone number. ( b ) Account termination. ( 1 ) A creditor shall not terminate an account prior to its expiration date solely because the consumer does not incur a finance charge. ( 2 ) Nothing in paragraph ( b ) ( 1 ) of this section prohibits a creditor from terminating an account that is inactive for three or more consecutive months. An account is inactive for purposes of this paragraph if no credit has been extended ( such as by purchase, cash advance or balance transfer ) and if the account has no outstanding balance. ( c ) Timely settlement of estate debts ( 1 ) General rule. ( i ) Reasonable policies and procedures required. For credit card accounts under an open-end ( not home-secured ) consumer credit plan, card issuers must adopt reasonable written policies and procedures designed to ensure that an administrator of an estate of a deceased accountholder can determine the amount of and pay any balance on the account in a timely manner. ( ii ) Application to joint accounts. Paragraph ( c ) of this section does not apply to the account of a deceased consumer if a joint accountholder remains on the account. ( 2 ) Timely statement of balance ( i ) Requirement. Upon request by the administrator of an estate, a card issuer must provide the administrator with the amount of the balance on a deceased consumer 's account in a timely manner. ( ii ) Safe harbor. For purposes of paragraph ( c ) ( 2 ) ( i ) of this section, providing the amount of the balance on the account within 30 days of receiving the request is deemed to be timely. ( 3 ) Limitations after receipt of request from administrator ( i ) Limitation on fees and increases in annual percentage rates. After receiving a request from the administrator of an estate for the amount of the balance on a deceased consumer 's account, a card issuer must not impose any fees on the account ( such as a late fee, annual fee, or over-the-limit fee ) or increase any annual percentage rate, except as provided by 1026.55 ( b ) ( 2 ). ( ii ) Limitation on trailing or residual interest. A card issuer must waive or rebate any additional finance charge due to a periodic interest rate if payment in full of the balance disclosed pursuant to paragraph ( c ) ( 2 ) of this section is received within 30 days after disclosure. 1026.11 Treatment of credit balances ; account termination. ( a ) Credit balances. When a credit balance in excess of {$1.00} is created on a credit account ( through transmittal of funds to a creditor in excess of the total balance due on an account, through rebates of unearned finance charges or insurance premiums, or through amounts otherwise owed to or held for the benefit of the consumer ), the creditor shall : ( 1 ) Credit the amount of the credit balance to the consumer 's account ; ( 2 ) Refund any part of the remaining credit balance within seven business days from receipt of a written request from the consumer ; ( 3 ) Make a good faith effort to refund to the consumer by cash, check, or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than six months. No further action is required if the consumer 's current location is not known to the creditor and can not be traced through the consumer 's last known address or telephone number. 1026.12 Special credit card provisions. ( a ) Issuance of credit cards. Regardless of the purpose for which a credit card is to be used, including business, commercial, or agricultural use, no credit card shall be issued to any person except : ( 1 ) In response to an oral or written request or application for the card; or ( 2 ) As a renewal of, or substitute for, an accepted credit card. ( b ) Liability of cardholder for unauthorized use ( 1 ) ( i ) Definition of unauthorized use. For purposes of this section, the term unauthorized use means the use of a credit card by a person, other than the cardholder, who does not have actual, implied, or apparent authority for such use, and from which the cardholder receives no benefit. ( ii ) Limitation on amount. The liability of a cardholder for unauthorized use of a credit card shall not exceed the lesser of {$50.00} or the amount of money, property, labor, or services obtained by the unauthorized use before notification to the card issuer under paragraph ( b ) ( 3 ) of this section. ( 2 ) Conditions of liability. A cardholder shall be liable for unauthorized use of a credit card only if : ( i ) The credit card is an accepted credit card ; ( ii ) The card issuer has provided adequate notice of the cardholder 's maximum potential liability and of means by which the card issuer may be notified of loss or theft of the card. The notice shall state that the cardholder 's liability shall not exceed {$50.00} ( or any lesser amount ) and that the cardholder may give oral or written notification, and shall describe a means of notification ( for example, a telephone number, an address, or both ) ; and ( iii ) The card issuer has provided a means to identify the cardholder on the account or the authorized user of the card. ( 3 ) Notification to card issuer. Notification to a card issuer is given when steps have been taken as may be reasonably required in the ordinary course of business to provide the card issuer with the pertinent information about the loss, theft, or possible unauthorized use of a credit card, regardless of whether any particular officer, employee, or agent of the card issuer does, in fact, receive the information. Notification may be given, at the option of the person giving it, in person, by telephone, or in writing. Notification in writing is considered given at the time of receipt or, whether or not received, at the expiration of the time ordinarily required for transmission, whichever is earlier. ( 4 ) Effect of other applicable law or agreement. If state law or an agreement between a cardholder and the card issuer imposes lesser liability than that provided in this paragraph, the lesser liability shall govern. ( 5 ) Business use of credit cards. If 10 or more credit cards are issued by one card issuer for use by the employees of an organization, this section does not prohibit the card issuer and the organization from agreeing to liability for unauthorized use without regard to this section. However, liability for unauthorized use may be imposed on an employee of the organization, by either the card issuer or the organization, only in accordance with this section. ( c ) Right of cardholder to assert claims or defenses against card issuer ( 1 ) General rule. When a person who honors a credit card fails to resolve satisfactorily a dispute as to property or services purchased with the credit card in a consumer credit transaction, the cardholder may assert against the card issuer all claims ( other than tort claims ) and defenses arising out of the transaction and relating to the failure to resolve the dispute. The cardholder may withhold payment up to the amount of credit outstanding for the property or services that gave rise to the dispute and any finance or other charges imposed on that amount. ( 2 ) Adverse credit reports prohibited. If, in accordance with paragraph ( c ) ( 1 ) of this section, the cardholder withholds payment of the amount of credit outstanding for the disputed transaction, the card issuer shall not report that amount as delinquent until the dispute is settled or judgment is rendered. ( 3 ) Limitations ( i ) General. The rights stated in paragraphs ( c ) ( 1 ) and ( c ) ( 2 ) of this section apply only if : ( A ) The cardholder has made a good faith attempt to resolve the dispute with the person honoring the credit card ; and ( B ) The amount of credit extended to obtain the property or services that result in the assertion of the claim or defense by the cardholder exceeds {$50.00}, and the disputed transaction occurred in the same state as the cardholder 's current designated address or, if not within the same state, within 100 miles from that address. ( ii ) Exclusion. The limitations stated in paragraph ( c ) ( 3 ) ( i ) ( B ) of this section shall not apply when the person honoring the credit card : ( A ) Is the same person as the card issuer ; ( B ) Is controlled by the card issuer directly or indirectly ; ( C ) Is under the direct or indirect control of a third person that also directly or indirectly controls the card issuer ; ( D ) Controls the card issuer directly or indirectly ; ( E ) Is a franchised dealer in the card issuer 's products or services ; or ( F ) Has obtained the order for the disputed transaction through a mail solicitation made or participated in by the card issuer. ( d ) Offsets by card issuer prohibited ( 1 ) General rule. A card issuer may not take any action, either before or after termination of credit card privileges, to offset a cardholder 's indebtedness arising from a consumer credit transaction under the relevant credit card plan against funds of the cardholder held on deposit with the card issuer. ( 2 ) Rights of the card issuer. This paragraph ( d ) does not alter or affect the right of a card issuer acting under state or Federal law to do any of the following with regard to funds of a cardholder held on deposit with the card issuer if the same procedure is constitutionally available to creditors generally : Obtain or enforce a consensual security interest in the funds ; attach or otherwise levy upon the funds ; or obtain or enforce a court order relating to the funds. ( 3 ) Periodic deductions. ( i ) This paragraph ( d ) does not prohibit a plan, if authorized in writing by the cardholder, under which the card issuer may periodically deduct all or part of the cardholder 's credit card debt from a deposit account held with the card issuer ( subject to the limitations in 1026.13 ( d ) ( 1 ) ). ( ii ) With respect to a covered separate credit feature accessible by a hybrid prepaid-credit card as defined in 1026.61, for purposes of this paragraph ( d ) ( 3 ), periodically means no more frequently than once per calendar month, such as on a monthly due date disclosed on the applicable periodic statement in accordance with the requirements of 1026.7 ( b ) ( 11 ) ( i ) ( A ) or on an earlier date in each calendar month in accordance with a written authorization signed by the consumer. ( e ) Prompt notification of returns and crediting of refunds. ( 1 ) When a creditor other than the card issuer accepts the return of property or forgives a debt for services that is to be reflected as a credit to the consumer 's credit card account, that creditor shall, within 7 business days from accepting the return or forgiving the debt, transmit a credit statement to the card issuer through the card issuer 's normal channels for credit statements. ( 2 ) The card issuer shall, within 3 business days from receipt of a credit statement, credit the consumer 's account with the amount of the refund. ( 3 ) If a creditor other than a card issuer routinely gives cash refunds to consumers paying in cash, the creditor shall also give credit or cash refunds to consumers using credit cards, unless it discloses at the time the transaction is consummated that credit or cash refunds for returns are not given. This section does not require refunds for returns nor does it prohibit refunds in kind. ( f ) Discounts ; tie-in arrangements. No card issuer may, by contract or otherwise : ( 1 ) Prohibit any person who honors a credit card from offering a discount to a consumer to induce the consumer to pay by cash, check, or similar means rather than by use of a credit card or its underlying account for the purchase of property or services; or ( 2 ) Require any person who honors the card issuer 's credit card to open or maintain any account or obtain any other service not essential to the operation of the credit card plan from the card issuer or any other person, as a condition of participation in a credit card plan. If maintenance of an account for clearing purposes is determined to be essential to the operation of the credit card plan, it may be required only if no service charges or minimum balance requirements are imposed. ( g ) Relation to Electronic Fund Transfer Act and Regulation E. For guidance on whether Regulation Z ( 12 CFR part 1026 ) or Regulation E ( 12 CFR part 1005 ) applies in instances involving both credit and electronic fund transfer aspects, refer to Regulation E, 12 CFR 1005.12 ( a ) regarding issuance and liability for unauthorized use. On matters other than issuance and liability, this section applies to the credit aspects of combined credit/electronic fund transfer transactions, as applicable.
Company Response: Company believes it acted appropriately as authorized by contract or law
State: TX
Zip: 77545
Submitted Via: Web
Date Sent: 2023-07-25
Company Response to Consumer: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A