Consumer complaint received 2017-03-31
Company: STATE FARM BANK, FSB
State: CA
Product: Credit card
Issue: Billing disputes

Complaint:
What Happened : State Farm Bank lost one of credit card payments, then fraudulently charged my Visa card, and refuses to remove the charge or work with me on a resolution. In XX/XX/XXXX, I made two {$540.00} online payments to State Farm Visa to pay for my XX/XX/XXXX and XX/XX/XXXX XXXX premiums, which consisted of ( at the time ) XXXX auto, XXXX life, and XXXX home policy. SFB processed one {$540.00} payment towards the XXXX payment plan, but STATE FARM BANK LOST THE OTHER {$540.00} PAYMENT. On XX/XX/XXXX, with XXXX Escalation Specialist XXXX on the phone with me, we explained the problem to SF Bank rep, XXXX ( XXXX ), who assured me she would " move the XX/XX/XXXX payment of {$540.00} to the Auto Plan. '' That would stop the late notices and threats of cancellation that I was being inundated with. She also confirmed that all I owed the following month was the statement balance of {$340.00} due XX/XX/XXXX, the premium for the XXXX life polices, since I cancelled the XXXX auto & XXXX home XX/XX/XXXX after being frustrated with this problem. On XX/XX/XXXX, I received a letter from SFB Collections that I had an outstanding bill of {$890.00}. I pay my credit card bills in full and on time each month. I did not have an outstanding balance with XXXX. How did the current balance of {$340.00} all of a sudden jump to {$890.00} and why was it in collections if the next payment is n't even due until XX/XX/XXXX? I immediately spoke with a SFB rep and learned that STATE FARM BANK ERRONEOUSLY CHARGED MY VISA {$540.00}. They then applied the funds to the payment plan where the money was used to issue me XXXX pro-rated refund checks for the auto and homeowner 's policies that I had cancelled. I disputed the Visa charge and have spent hours on the phone with countless bank reps who kept telling me I had requested a " payment reversal. '' This is False! And if this is a reversal of funds I gave SF Bank, why is this not a credit on my Visa but a debt that is now in collections? Why did SFB charge my card on XX/XX/XXXX when I made those funds available in XX/XX/XXXX? On XX/XX/XXXX, I explained the issue with SFB Supervisor XXXX ( XXXX ) who tried to trace this so-called refund or payment reversal, but neither my bank nor my local XXXX agents received it. She could not explain why the {$540.00} was charged to my Visa account, but was unable to remove it. Two hours on the phone and she could not remove it! Who can?? Only SF Bank Corporate can, yet XXXX, XXXX, and XXXX from Corporate were unwilling to do so and only referred me back to customer service. After complaining on social media, I was told my case would be sent to the Executive Team, the highest level of resolution which also reports to the Chairman. A few days later, XXXX from State Farm Payment Plan called, but when I explained that the problem involves a disputed charge on my Visa card, she assured me she would send this to State Farm Bank for review. It has been over a week and no one from the bank has followed-up. Meanwhile, the SFB Past Due Dept has no problems calling me every two weeks to seek payment and to ding my credit reports. My XXXX credit score has now dropped to XXXX. I have been trying to resolve this ordeal for the past six months, but I am being ignored and getting the runaround. State Farm Bank -- Please reply!

Company response to consumer: Closed with explanation