Consumer complaint received 2018-07-27
Company: TD BANK US HOLDING COMPANY
State: IL
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Getting a credit card
Sub-issue: Card opened as result of identity theft or fraud

Complaint:
On XX/XX/2018, I visited a XXXX XXXX store and shopped for several items. The customer sales representative while checking out my items, offered a special Nordstrom card to me. She said that this would allow me to accumulate points when I make purchases as well as provide me a {$40.00} coupon for signing up. I was wary of credit cards and especially the impact new credit can have on my credit score, so I asked the store representative to confirm whether the application for the Nordstrom card would require a hard inquiry of my credit score. I was specifically and repeatedly ( at least five times ) told that the inquiry would be soft and very soft. Based on this representation, I agreed. 

As the store representative was ringing up my items, she told me that they would process payment for the items purchased using the new Nordstrom card. I immediately objected. I told her that I had no intention of using the card for credit purchases and that my purpose instead was simply to get the {$40.00} coupon/points program. I was told that the coupon could only be given if I made the purchase. Accordingly, I told her to stop the purchase through the new card and use my existing credit card to complete the purchase. I also told her to immediately cancel the card and void the transaction, since I was never told that I had to actually use the stores credit. She complied and called the stores helpline for this purpose. While she was on the phone, I also requested to speak with the helpline representative ( XXXX ) to ensure that she had the correct details. I also asked XXXX ( helpline representative ) to confirm that the inquiry made on my credit report was indeed soft. To my shock and dismay, she said No. 
I immediately protested and told XXXX that I had been misrepresented. XXXX, regretfully, only apologized and told me to take the matter up with the stores customer experience manager. Accordingly, I requested to speak with her. 

XXXX, the stores customer experience manager, understood my problem and called the stores card helpline again to resolve it. After an extensive wait, I was told the following : 1. The hard inquiry on my credit card report will be removed. The company will communicate the error/unauthorized inquiry to the credit bureaus and they will also send a letter to me in relation to this.

2. All information regarding my account, if any, would be requested to be removed from the credit bureaus. 
3. I will receive a letter stating that my account has been cancelled ( perhaps this letter will also include my cancelled credit card ). 
4. I will receive a XXXX XXXX note/coupon in the mail. 
5. I could call XXXX in case I have any questions. 

The very next day ( XX/XX/2018 ), I called the number provided by XXXX, Nordstroms Customer Experience Manager. My credit report had already shown a hard inquiry from NORDSTROM/TD BANK USA and my credit score had fallen considerably ( by 35 points ). I wanted to relate this information and also provide my email address for receiving further communications. 

The helpline representative ( XXXX first, then XXXX ) confirmed XXXX account and said that my issue would be resolved. I was told that all information relating to this incident ( including the inquiry ) would be permanently removed from my records ( i.e. if the same had even been communicated - which should not be the case since the account was closed immediately ). The representative did mention that I would not receive the XXXX XXXX coupon. However, I made clear that at this stage I was not interested in the coupon, and simply wanted a return to my credit position prior to the inquiry/opening of account by Nordstrom. Since all my acts were in made reliance of Nordstroms false and material misrepresentations, Nordstrom was liable for complete restitution. We also agreed that all further communications would be sent to me via email and that I should expect written communications which reflected our discussion, especially in relation to the unauthorized hard inquiry by Nordstrom. 

The next day (XX/XX/XXXX ), I received an email from XXXX. This email included a letter as an attachment, which I have also attached with my complaint. As you will see, this letter only mentions that my account has been closed at my request and that the three major credit bureaus have been notified of this change. Even though I wanted to I could not reply and immediately dispute this email ( as this email could not receive replies ) ; however, the very same day I called the helpline and voiced my concerns. 

I told the Nordstrom card representative that this letter did not capture ( and was in fact against ) previous representations given to me by the Nordstroms management and representatives. Firstly, the opening and closing of the account should not have been communicated to the credit bureaus since the opening of the account was itself fraudulent. Also, the company had expressly undertaken to not communicate this information to the credit bureaus ( and if this communication was communicated, it should have been withdrawn ). Secondly, the letter did not mention any action ( or even the incident ) in relation to the unauthorized hard credit check. 

I requested a response in writing or a communication with someone senior in the management. This was the second time I had been misled by Nordstrom. I was admittedly quite frustrated. At every stage, I had tried to cooperate with them to resolve a matter which was entirely their fault. However, my complaint was not being dealt with seriously. I made clear that unless I received a satisfactory response in writing or an assurance from their management, I would file a formal complaint with the Consumer Financial Protection Bureau ( CFPB ). I was kept on hold for a few minutes, but the helpline representative was unable to get someone from the management. 

Despite my notice to file a formal complaint, I have so far not heard from the Nordstrom or received any communication from them. Their modus operandi appears to be one of misleading consumers and delaying resolution until they give up. Throughout this process their sales and helpline representatives were admittedly polite. But this is of itself not helpful quite the contrary. They give you the impression that they are interested in solving your problem, when, in fact, they are simply buying time. 

I have so far directly spent over five hours of my time trying to resolve this issue. I have also suffered direct harm due to the damage to my credit score ( 35 points till date ). All of this is due to the false and material misrepresentations by Nordstrom. Many others could be similarly placed. In fact, in my discussions since with other sales  representatives at Nordstrom, it appears that they both lack training and information, and are also provided adverse incentives to hard sell Nordstrom credit card products. Unwitting consumers are accordingly being deceived to take on credit card obligations without accurate information. It should be noted that even where a consumer has the sense to close his or her account, the impact of a hard inquiry can be sufficiently damaging. For instance, the AAAcreditguide notes that for consumers, on the cusp between poor and fair, 5-10 points might make all the difference in getting better loan terms.. .or access to a loan at all.

Company response to consumer: Closed with explanation