Consumer complaint received 2023-09-07
Company: CITIBANK, N.A.
State: CO
Product: Credit card
Sub-product: Store credit card
Issue: Getting a credit card
Sub-issue: Card opened without my consent or knowledge

Complaint:
CREDIT CARD FRAUD
WAYFAIR AND CITIBANK - FRAUD, COMPLICITY AND NEGLIGENCE

OVERVIEW
On or about XXXX XXXX XXXX  Wayfair | Citi Cards | Citibank N.A. erroneously issued a credit card in my name to a person unknown to me who had apparently hacked an old Wayfair account and stolen personal information. At the same time, Wayfair allowed the fraudster to charge thousands of dollars in merchandise in three orders to be sent to various locations in California

I live in Colorado. I have never applied for a Wayfair credit card, not in XXXX  or ever. I have not purchased from Wayfair in several years; the account has been dormant since XXXX, and the associated email address closed. I received no notice about either the credit card issuance or the orders. 

The first bogus order was delivered sometime between XXXX XXXX XXXX XXXX XXXX. Wayfair apparently realized that something was wrong and cancelled the second and third orders. 

Although the items were delivered to California, the credit card statement, with XXXX XXXX XXXX  full amount charged, was mailed to my address in Colorado. Upon receipt around XXXX XXXX I contacted both Wayfair and Wayfair Credit Card (Citibank) to report the mistake, only then learning of the fraudulent card issued in my name and bogus charges. Both entities assured me that they were aware that fraud had occurred, that the credit card account was closed and all charges removed. I was told that no further action was required on my part.

Despite the many unequivocal assurances, I continued to receive statements for the charges, then harassing phone calls, and finally threats of sending the account to collections. 
Since that time, I have communicated by phone, email and online chats with no fewer than 35 people, at Wayfair and Citibank and/or Wayfair Credit Card, wasting well over 100 hours in a futile effort to get this remedied.
Over and over, I provide details and wait as agents review the situation. I describe the increasing seriousness of the matter and evolving damages, and plead for a supervisor, manager and/or the corporate office look into the situation. 

Ive been told consistently and apologetically, by multiple people in various departments, that errors were made and someone dropped the ball.  Each call or chat takes an average of one hour and, though the agents consistently promise that they or another department will follow up until the problem is satisfactorily fixed, and my time, inconvenience and ongoing stress compensated in some way, none of the promised follow-up and rectification has occurred. Worse, they either cannot or will not provide a means for me to reach them again forcing me, except in one brief instance, to start over with each new contact. 

The situation is further complicated by having to deal with two (and possibly three) entities who I cant force to communicate with each other. Im, as yet, unsure of the structure of Wayfair Credit Card and Citibank.
Wayfair representatives, when not saying variously that they will correct the errors or that they have already been corrected, advise me to contact MY credit card company (which I have only because Wayfair issued the card in error). Citibank, which confirmed back in XXXX XXXX that the card was cancelled and all charges removed, now states they can do nothing until they get word directly from Wayfair to delete the remaining charges. They will not contact any of the various reps and departments Ive talked to and provide no direction other than to call the number Ive already been calling. I have no way to make Wayfair communicate with Citibank, and the Wayfair reps refuse to provide me with anything written that I might forward. Ive many times requested that both entities open a formal investigation with me in the loop. Even when Im told they will, I hear nothing further except from collections agents who say they cant or wont process any information I give them. There is no continuity or accountability anywhere.

This nightmare has dragged on for almost eight months.

Despite the many promises and assurances, I continue to be harassed (now by letters rather than calls) by Wayfair/ Citibank for payment of now more than $2,000 (with late fees and finance charges). 

My credit has been severely damaged, dropping roughly XXXX  points from a lifelong high of over 800 to as low as XXXX, I have lost financial opportunities (advantageous phone plans, credit card applications delayed or denied, and favorable loans unavailable), and have spent well over a hundred hours writing and talking to dozens of people, and communicating with the credit bureaus and researching remedies. Heartbreakingly, Ive  delayed plans to purchase a new retirement home in XXXX XXXX, concerned about mortgage qualification and terms.

This has caused a tremendous amount of stress, uncertainty and disruption in my life. I no longer have any hope of resolution by working diligently and in good faith with either Wayfair or Citibank.

DETAILS  DATES, THE ORDERS, PHONE CALLS, CORRESPONDENCE (CHATS NOT INCLUDED)

Credit card issued on or about XXXX XXXX XXXX  with account ending in XXXX.
Wayfair Credit Card (issued by Citibank, N.A.)
XXXX XXXX XXXX XXXX XXXX XXXX XXXX  
First statement sent XXXX XXXX XXXX  Most recent XXXX  statement is XXXX with fees and interest.

These are the three orders taken by Wayfair on or about XXXX XXXX XXXX (they are no longer accessible on the Wayfair website):
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  	CANCELLED BY WAYFAIR
XXXX XXXX XXXX XXXX XXXX		CANCELLED BY WAYFAIR
Addresses listed for delivery of the fraudulent orders (I do not know these people or their locations):
Email: XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I received a statement from Wayfair Credit Card for XXXX. Knowing Id placed no orders with Wayfair, I contacted both Wayfair and Wayfair|Citi Cards, to notify them of the error. Between XXXX XXXX XXXX XXXX XXXX, I spoke to several different people at both entities, including but not limited to XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Every Wayfair representative confirmed that the company was aware of the fraudulent activity, that all charges had been removed, and I did not need to do anything further. I requested an investigation into how the criminal might have gotten into my account and been approved for a credit card, then been allowed to immediately place orders. I was told a case would be opened.
For their part, Citibank confirmed also that the card had been cancelled and all charges removed. 
I received a letter from Wayfair Security Operations dated XXXX XXXX XXXX confirming that the account was closed and that they would investigate the charges. I was unaware then that, contrary to what I had been told, some of the charges would remain on the fraudulent account and I might be held responsible for them.
I didnt receive follow up from Wayfair and, still concerned about how the identity theft had occurred, I called Wayfair again on XXXX XXXX to gather more information. I talked to several reps for most of the afternoon. The first person, possibly XXXX, confirmed that Wayfair knew that the credit card application had been falsified and the three orders fraudulent, that the first order was delivered, and the other two cancelled.
I was transferred to XXXX  for a more in-depth review. XXXX  went over the status and details surrounding  the several orders, including contact information of the fraudster. XXXX  had previously been an investigator with a financial institution, and was helpful. She found that the first order had been delivered between XXXX XXXX XXXX XXXX XXXX, (I didnt record the exact day) at XXXX to an apartment building in XXXX XXXX She surmised that the person responsible had the items delivered outside the front door, with a truck of their own waiting for the pickup. The second and third orders were cancelled and never delivered. 
XXXX  sent me copies of the invoices and cancellation notices (see below), which Id not previously seen, and, consistent with other agents, confirmed that Wayfair knew that fraud had occurred in both the issuance of the credit card and online orders. I asked to be notified if any additional information became available. XXXX  said that while it was unlikely that Wayfair would take any further measures to find the scammer, I would not be responsible for any payments or further actions. 
Like XXXX, no one I talked to at Wayfair or Citibank expressed doubt that identity theft had occurred or suggest that I might be held responsible for their mistake. I especially did not know that upwards of XXXX  in interest and late fees would be charged to me, and that I would start getting collection calls even while the situation was being investigated.
The collection calls began in early XXXX  and mostly went to my voice mail. Those on the machine and the several phone calls I took, seemed suspicious especially as I wasnt expecting such contact.
As the number and frequency of contact increased, some daily, I called Wayfair again on XXXX XXXX I spoke with Wayfair rep XXXX XXXX, who stated absolutely that everything from their end had been resolved, that there were no outstanding charges, and that the collection calls most likely were the hacker or other scam. I began to suspect that something wasnt right and, after lengthy discussion, XXXX  discovered anomalies in the account(s), said he would have the situation reviewed, and would follow the case until it was resolved. He was the only person in seven months to give me follow-up contact information and with whom I was able to connect more than once. His phone number, however, did not reach him and his promises unfulfilled.
Later, XXXX  emailed me that he was unable to reach a person in the fraud department directly (and nor was I allowed to talk to them) and received only a boiler plate response that they would look into the matter and follow up within three months by XXXX XXXX XXXX XXXX  continued to assure me that he would follow the case until resolved. 
I apologize for all the hassles and inconvenience this has been to you and I want to assure you I am still watching your order and will let you know when the dispute has been worked. XXXX  I will continue to monitor this with you until it is resolved. XXXX XXXX XXXX  Our email correspondence is provided in an attached document.
Concerned about waiting, while I was receiving collection calls, I contacted Wayfair again on XXXX XXXX, and in another hour-plus phone call, this time with XXXX  who I understood was in the fraud department. XXXX confirmed the following facts and errors, as I later reported to XXXX  XXXX XXXX	Notes showed that I was correct that all charges were to have been removed in XXXX XXXX and the card cancelled. There was no mention of any review, according to XXXX, and apparently none started then.
2.	For some reason as yet unexplained, Citibank took the second two charges off but left on the first. This, XXXX  said was an error.
3.	XXXX  also said it was contrary to policy and proper procedure that I was being held accountable for the charges and, worse, getting collection calls; even if a review had been undertaken, the charges should have been on hold.

XXXX  told me, candidly, that someone had dropped the ball. She too was not in the right department, but committed to follow up to make sure Wayfair rectified the situation. Though she could not provide me with her contact information to enable direct follow-up, said she would report back to XXXX, who she said was on her team, and I could follow up with him. 
I reported this conversation to XXXX, requesting an update, but never heard from him again. Nor did not hear back from XXXX, a different XXXX, or any other department.
Despite all the assurances, mea culpas, and promises to make things right, I continued to get statements from Wayfair Credit Cards and further phone calls demanding payment, even after requests not to be harassed and that the situation be corrected. In early XXXX, I received a letter, again from Wayfair Security Operations, stating that The information reviewed as part of the investigation does not support your claim that this account was fraudulently opened using personal information and that I am responsible both for the account and charges in question. There was no explanation as to how they came to this erroneous conclusion(which contradicted all Id been told) and apparently no way to appeal.
Around this time, I discovered that not only had Wayfair or Citibank sent out the account for collection, but had been reporting delinquencies to the credit unions beginning a steep decline in my XXXX  score - a dip already of XXXX  points.
I continued to write XXXX XXXX, notifying him of the damages to my credit. I also attempted several online chats which, though extremely time-consuming, were unproductive. One rep advised me to write the corporate office at: ExecutiveResolution@Wayfair.com XXXX Chat with XXXX, Wayfair.) Henceforth, I sent emails to multiple departments: ExecutiveResolution and Service@Wayfair.com, as well as to XXXX XXXX (Emails are provided below.)
On XXXX XXXX  contrary to the denial letter I received in early XXXXXXXX XXXX XXXX confirmed in writing that all  the charges had been refunded: 
Hi XXXX,
I am sorry that you still did not receive any updates regarding the fraudulent orders made from your account. Upon checking, we already issued a full refund to your account. Please be advised to contact your bank directly to investigate.
However, XXXX, like the others at Wayfair, ignored my repeat communication that Citibank (which is their bank, not mine) would not accept my representation of this fact and will not remove the charges until they hear directly from Wayfair.
Then, from XXXX XXXX, I received the following email, again telling me that all charges were removed: 
Thank you for reporting to us the suspicious order in your account. The orders XXXX XXXX XXXX XXXX have been successfully canceled. Wayfair takes this type of situation very seriously. We have our specialized team who will investigate this further and make sure to prevent potential risks in your account.
No follow up happened and the statements keep coming. I have asked them to make sure communications are going to the right place but every message I get is from a different person and it seems that there is no continuity of information at Wayfair.
Late fees amounting to XXXX XXXX XXXX XXXX have been added to the total which was then XXXX  Delinquencies were reported to the credit unions. My XXXX  Score dropped from XXXX  to XXXX  and my credit rating likewise downgraded, with all associated damages.
Footnote: Today I made a last effort to communicate with the credit card services company; specifically to get access to the Citibank account associated with the card so I might download the statements since XXXX. I never received the card itself, so dont have the security code necessary to register an account.  At XXXX, I called the number located on my XXXX XXXX XXXX, and spoke to XXXX XXXX XXXX XXXX  After an extensive period of time verifying the account, XXXX  informed me that the account was in review, and so she could take no action and I would have to call back in a week. I said I only needed copies of the statements and/or assistance accessing the account. I also reminded her that Id been calling for seven months so what could I expect to happen in a week. She said the conversation was going nowhere and she would have to hang up. I agreed and asked to be put in contact with a supervisor and/or whomever was undertaking the review. She said the shift had ended at XXXX  and there was no one else I could talk to, nor could she tell me what the review entailed or how long it would take.

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 non-monetary relief