Consumer complaint received 2020-09-18
Company: CITIBANK, N.A.
State: NC
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: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
On XX/XX/2020, I purchased a {$200.00} virtual visa gift card via XXXX XXXX using my Citi credit card ending in XXXX. On XX/XX/2020, I tried to use this gift card for the full amount of {$200.00} but the transaction was declined, the transaction DID NOT go through. However, when I checked the gift card balance, I found that it has XXXX balance. The transaction was pre-authorized, this pre-authorization always falls off in 2-3 business days ( Since the transaction was declined ) and funds go back to the visa gift card. In my case, this didn't happen. The {$200.00} was never re-deposited back into the visa gift card by XXXX XXXX. 

I followed the instructions listed on XXXX XXXX to resolve this issue and filed a dispute with the XX/XX/XXXX ( The bank that issues XXXX XXXX gift cards ) on XX/XX/2020, I mailed in my dispute documents to XXXX XXXX XXXX XXXX XXXX XXXX, FL XXXX XXXX, USPS tracking number : XXXX, delivered on XX/XX/2020. On XX/XX/2020, I calledXX/XX/XXXX at ( XXXX ) XXXX at XXXX XXXX  ET on a recorded line to inquire about the status of my dispute, the agent wasnt able to find my dispute documents and he got a supervisor involved. The agent advised me to dispute what I paid for this gift card directly with my credit card Bank ( Citi Bank ) as their dispute process takes 100 days to resolve. 

I contacted XXXX team by email on XX/XX/2020, XX/XX/2020,XX/XX/XXXX,  and XX/XX/2020 to resolve this dispute. The only response I ever get back from them is : Our team is still looking into this and we will be reaching out to you soon with the best solution. Its been 6 weeks and not only I didn't hear back from XXXX, but theyve deactivated my account and I lost access to all the virtual gift cards I purchased through Fluz app. I have exhausted all my efforts with XXXX to resolve this dispute without any success. I filed a complaint against XXXX and XX/XX/XXXXwith the XX/XX/XXXX, CFPB, and Attorneys General Office, they didnt respond to any of these institutions. 

On XX/XX/2020, I opened a billing dispute with Citi Bank over the phone. Case ID XXXX. On XX/XX/2020, I sent a letter to XXXX explaining in details what happened and why I am disputing this transaction, I also provided Citi Bank with a copy of all my email communications with XXXX showing how XXXX has not been cooperating with me to resolve my complaint. 

On XX/XX/2020, I received a letter from Citi Bank via email saying that the Merchant has responded to them, and based on that response they  decided to close the case in Merchants favor. Upon reviewing the documents provided to me by Citi Bank I found the following : 1- Citi Bank used the wrong dispute reason code ; XXXX Non-Receipt of Service/Merchandise. 

The correct dispute code for this case must be : XXXX - Cardholder Dispute - Goods or Services Were Either not as Described or Defective. The gift card was delivered to me but it was defective. When I tried to use it, it was declined and the {$200.00} was seized by XXXX Bank and was never re-deposited back to the visa gift card. That {$200.00} is not in my possession. 

2- XX/XX/XXXXresponse to Citi Bank doesnt contradict my claim and doesnt address it either. XXXX stated that the gift card was delivered to me and that it has insufficient funds which is true because that money was seized by XXXX Bank. 

3- Citi Bank dispute department didnt read the details I provided to them, an issue Citi Bank is notoriously known for which led them to use the wrong dispute reason code and process this case accordingly.

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