Consumer complaint received 2019-12-20
Company: BBVA FINANCIAL CORPORATION
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
Parties involved - XXXX 401k loan - Simple Finance - BBVA Compass ( partner bank of Simple ) - XXXX and XXXX XXXX My spouse ( XXXX XXXX ) had taken a loan in the amount of {$16000.00} from her XXXX 401k account on XX/XX/XXXX to be ACH deposited into a checking account with Simple Finance, an account under my name XXXX XXXX. This was recorded as " cleared '' on the XXXX of XXXX. 

Unknowingly ( by me until after the fact ) this Simple checking account was closed due to a charge off approximately two weeks prior to applying for the 401k loan for a negative balance. 

After recognizing this error, we had contacted XXXX on what would happen next. Per our understanding, XXXX had said, if the account no longer exists, Simple ( in this case ) would simply reject the transfer and alternative distribution would take place ( another checking account or physical check. ) We were told that a physical check was in fact coming and due to arrive no later than the XXXX of XXXX. This never happened. 

After days of phone calls with Simple support and XXXX to get the matter resolved, the issue was escalated to Simple 's Fraud and Disputes department for review. This is where I was asked for a 15 digit trace number because Simple was unable to locate the funds in their system. 
XXXX and Simple were unable to provide this information for me. 
So I called the BBVA Compass ACH Department ( the partner bank for Simple ) to request the 15 digit trace ID, where in fact the {$16000.00} did clear and was in their system. Due to the charge off status with BBVA, it appears that Simple either did not recognize or get the information from BBVA because of the account status. 
After presenting this trace number information to Simple per their request, they performed an investigation to which they said " We have confirmed that the funds have been received, but due to the charge off, it could take 2-3 weeks for us to issue a cashier 's check. However, if you would like to access the funds faster, we advise that you please reach out to XXXX to see if they can reverse the funds. '' After calling XXXX, they are unable to reverse the payment until BBVA/Simple reject it. In this case it seems Simple can not reject the payment either because they could not find it or something else. 

Then a follow up message later on " I wanted to follow up again. I'm not sure if there was a typo on your end, but the amount that we received from XXXX is {$16.00}, not {$16000.00}. I would suggest reaching out to XXXX for further information. '' This is categorically false. There was a pending transfer of {$16.00} that was initiated after the account was closed to cover the charge off amount of {$15.00} which is still pending. 

My wife and I are beyond frustrated with this and are exploring legal action for what should essnetially be a simple rejection or alternative we are unaware of. 
The BBVA ACH representative I have spoken with said, typically for charge off 's, its as simple as paying the balance due and receiving a cashiers check at a local bank. 

Simple offered this in the above quotes without any guidance whatsoever.

Company response to consumer: Closed with explanation