Consumer complaint received 2020-09-19
Company: CAPITAL ONE FINANCIAL CORPORATION
State: KS
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Card was charged for something you did not purchase with the card

Complaint:
Ive had my CapOne account for nearly 10 years without issue. Since XXXX of 2020, someone has been attempting to fraudulently use my card at XXXX XXXX with multiple transactions ranging between {$720.00} up to {$2600.00}. The transaction for {$720.00} posted to my account on or around XX/XX/XXXX. The remainder of the transactions were authorization attempts that did not post to my account. I have spoken to an agent on four different occasions ( the 1st time on XXXX XXXX, 2nd time on XXXX XXXX, 3rd time on XXXX XXXX, and 4th time on XX/XX/XXXX ). On XX/XX/XXXX, I was finally able to speak with XXXX in the fraud department regarding this issue. 

As a result of this issue, I have had to get my card replaced 3 times. Each time, the agents solution was for me to lock my card via the CapOne mobile app and unlock the card when I needed to use it for purchases and immediately lock it again. The agents told me that they were not able to conduct a fraud investigation, since the transactions were only attempted and did not hard post to my account. They explained that when a card is reissued for fraud, the old account is tied to the newly issued account through Mastercard ABU ( automated billing updater ) to prevent recurring charges from being declined. They explained that the attempted fraud charges were either on the old card or a result of the connection to the old card number by VCN ( virtual card number ). One agent also recommended that I leave my account unlocked to let the charge post, so that I could formally dispute it. Another proceeded to ask me if my sister or husband attempted to make the purchases and refused to accept my claim that the purchases were fraud. 

On the XX/XX/XXXX call, we had a tri-party call with CapOne and we spoke with XXXX at XXXX regarding the attempted fraud purchases. They only asked questions about my information XXXX name, billing address, and phone number ) in an effort to locate a purchase attempt. They also tried to look for the last 4 of my credit card number ( s ) and last 4 of SSN to locate the purchase attempt and were not able to locate the attempt. 
Each agent refused to start a fraud investigation for the {$720.00} or the other attempted transactions. It was not until I mentioned that I would file a CFPB complaint on the XXXX XXXX call that the agent agreed to accept my fraud claim. 

My concern is that the CapOne agents actions are a direct violation of 12 CFR 1026 and Section 5 ( a ) of the FTC Act ( prohibition of unfair or deceptive acts or practices - UDAAP ).

The agents refused to accept my verbal fraud claim on at least 4 different occasions ( 1026.12 ) and conduct a thorough investigation of such ( as specified under both 1026.12 and 1026.13 ). Further, the agents were apparently placing a barrier to access for me submitting my fraud claim by incessantly providing alternative recommendations to alleviate the situation which is an abusive and unfair practice. The agents should not place a barrier to customers submitting a verbal fraud claim. I note that this is not a billing dispute under 1026.13 as these are FRAUDULENT transactions.  Additionally, the agents suggestions to either keep my card locked and/or let the charge post are unfairly limiting my access to my credit account and another unfair and abusive practice. The ABU process in place with Mastercard is willfully permitting the attempted fraud charges to be tied to every new account number they have issued me. They should be able to break this connection on their system or with Mastercard to stop the fraud.

Company response to consumer: Closed with explanation