Consumer complaint received 2022-01-23
Company: MUFG AMERICAS HOLDINGS CORPORATION
State: CA
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:
I received a credit card from Union Bank XXXX  years ago when I opened up a savings account with the bank. I have never used the card ; it has remained in my file cabinet since I originally received it. I have also never authorized anyone else to use this card or the credit card number. 

Right after the New Year, I received a letter from Union Bank, saying that I was in arrears on my account and that I owed {$3100.00} for charges and late fees incurred during the previous month. I immediately called Union Bank 's credit card division and was automatically put through to the collections department. When I asked what the charges were for, they explained to me that someone had used the card to make purchases in late XXXX and early XXXX at a clothing store based in XXXX. I do not know if the charges were made in person or online. I live in California and haven't traveled out of the state for the last XXXX years. 

Union Bank collections department did not appear interested in acknowledging there was fraud. It took me multiple attempts to reach the right person at Union Bank who could help me file a fraud complaint. Union Bank, from what I learned, has a third-party service provider that operates its fraud detection system. When I spoke to several people there I was told that did not even have access to my account information, since there are an independent outside service entity. 

Finally I called the next day ( XX/XX/2022 ) and spoke to XXXX in Customer Service, who agreed to send a fraud complaint to the appropriate department, promising me I would hear back within 30 days about the resolution of the complaint. She also told me that the records showed that the XXXX XXXX division had tried to contact me on on my mobile phone on XX/XX/XXXX and XX/XX/XXXX to alert me to a possible fraud. I never received such a call and no message was ever left there. Even though they never reached me, they went ahead and allowed the suspicious charges to be made to my account. 

I find this process to be highly inadequate and unfair to consumers and believe that Union Bank should change its system. Union Bank 's fraud detection operation places consumers at financial and security risk, and fails to follow more effective procedures I have experienced with XXXX XXXX  XXXX and XXXX XXXX, for example. 

I have not heard back yet from Union Bank about the status of my fraud complaint. However, I just received another letter from the bank, dated XX/XX/2022, demanding payment and warning me that " not making payments due may result in adverse reporting to credit reporting agencies. '' I ask that the Bureau launch an inquiry into Union Bank 's handling of this matter, as well as a more comprehensive investigation into how it implements its consumer fraud service.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief