Product: Checking or savings account

Formal Complaint Against Square Payment Processor for Unjust Account Closure Description : I am writing to file a formal complaint against Square Up payment processor for arbitrarily and capriciously closing our account immediately after processing our first credit card transaction. This transaction was a valid, authorized charge made by a bona fide client of our licensed medical consulting business. 

The charge was for {$10000.00} for medical consulting services, made on or around XX/XX/year>, it was our first transation and there were no indications of fraudulent activity or any violations of Squares terms of service. We operate under all necessary licenses and follos all applicable laws and regulations. 

Despite this, Square closed our account without providing a valid reason or sufficient notice. This abrupt action has caused significant disruption to our business operations, financial loss, and damage to our reputation with our clients. 

Legal References : 1. Electronic Fund Transfer Act ( EFTA ) : The EFTA ( 15 U.S.C. 1693 et seq. ) governs electronic payments and protects consumers when they use electronic fund transfer services. Under the EFTA, Square has a duty to provide clear and accurate information about account terms and conditions, and to handle disputes in a fair and timely manner. 
2. Consumer Financial Protection Act ( CFPA ) : The CFPA ( 12 U.S.C. 5481 et seq. ) prohibits unfair, deceptive, or abusive acts or practices ( UDAAPs ) in connection with consumer financial products and services. The arbitrary closure of our account without valid reason or notice, and the failure to provide a process for rebuttal or reconsideration, XXXX constitute unfair and abusive practices under the CFPA. 
3. Due Process Violations : The lack of notice and the absence of a right to rebuttal or reconsideration constitute violations of due process. We were not given any opportunity to respond to or contest the closure of our account, which is a fundamental aspect of fair treatment under the law.

4. Truth in Lending Act ( TILA ) : The TILA ( 15 U.S.C. 1601 et seq. ) requires transparent and fair practices in lending and credit transactions. While primarily focused on credit, the principles of transparency and fairness are applicable to payment processing as well.

5. Fair Credit Reporting Act ( FCRA ) : If Square reported the account closure to credit reporting agencies, they XXXX be subject to the FCRA ( 15 U.S.C. 1681 et seq. ), which mandates accurate and fair credit reporting practices.

Actions Taken : 1. I attempted to contact Squares customer service immediately upon learning about the account closure. However, the responses did not provide a satisfactory explanation or resolution. 
2. I provided all necessary documentation to prove the legitimacy of the transaction and the authenticity of our business operations.

3. I requested the reinstatement of our account and the release of the funds from the processed transaction, but to no avail.

Resolution Sought : 1. Immediate reinstatement of our Square account.

2. Release of the funds from the processed transaction.

3. A clear and detailed explanation for the account closure.


4. Assurance that such arbitrary actions will not occur in the future.

5. Implementation of a clear process for notice and the right to rebuttal or reconsideration in case of account closures.

The actions taken by Square have caused undue stress and financial hardship on our business. We rely on reliable payment processing services to maintain smooth operations and serve our clients effectively. The lack of transparency and support from Square in this matter is unacceptable. 

I respectfully request that the CFPB investigates this matter and ensures that Square provides the necessary resolution and takes measures to prevent such occurrences from happening to other businesses. 

Thank you for your attention to this serious matter.