Consumer complaint received 2019-03-04
Company: TD BANK US HOLDING COMPANY
State: CA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I recently had a problem with my Nordstrom Credit Card, and I would like this situation duly noted and/or reversed in my credit file, as my FICO score has now taken a hit as a result of Nordstroms error. I remind you that under the Fair Credit Reporting Act and the Consumer Protection Act, you have an obligation to do so immediately.

I have been a Nordstrom Credit Card holder for more than 13 years, spending tens of thousands of dollars with them over the lifetime of my loyalty to them. During this time, I was also a Nordstrom Loyalty customer, and I regularly received reward certificates for my spending. 

In XXXX, in XXXX XXXX, I made a {$1200.00} purchase for a business trip to XXXX. I was traveling a lot for work and out of the country, so when I finally returned home, I received my XXXX statement in the mail, and I realized I was two days late in paying my bill, so I used the automated phone service Nordstrom has to pay a bill online ( this is a 24/7 bill pay phone number at XXXX ). 

I paid the amount in full on XX/XX/XXXX, and I immediately received an automated billing confirmation number and payment proof was also received in writing when reflected on my next Nordstrom statement ( SEE ATTACHMENT # 1 and # 2 indicating payment on XX/XX/XXXX while a late fee for {$37.00} was assessed and charged on the same day payment was due - redacted for this version ). 

When I received my following months statement, 2 statements later, not only did the payment show as adjusted and reversed, but I had received a collections notice, too, indicating that my account had gone to collections and was now reported to all credit agencies ( ATTACHMENTS # 3 and # 4 - redacted for this version ). 

When I contacted the collection agency, they did not understand the issue, so they had to patch in someone from customer service at Nordstrom, whose name was XXXX XXXX ( not her real name, Im sure ). A very terse and unhelpful Ms. XXXX said that their automated payment system had used an account for my bill from a bank account we no longer have open. This account at XXXX XXXXXXXX XXXX has been closed since XX/XX/XXXX! I buy at Nordstrom multiple times per year. How could they have on file, an account that has been closed for 7 years!? Ms. XXXX also indicated that they did not have an email or phone number on my account, which is not true. I regularly receive emails from Nordstrom - both promotional and billing related. I never received an email notice or phone call or letter ( other than my statements ) indicating that this account was late or not paid, and I never received notice that they were using a closed bank account that had not been open for 7 years.

Nordstrom has had several credit breaches. Most recently, a security breach in XXXX, XXXX. What has likely happened is that during one of their breaches, they had to restore their customer account systems, and they picked up an old and expired customer record for me, which included this closed/invalid account at XXXX XXXX XXXX. What I can not understand is how their automated payment system allows a payment to be accepted, go through and be verified as paid without having to confirm that its a valid and open account? Is this not the definition of wire fraud?! 

When I challenged Ms. XXXX, she admitted that I had made a payment online with good intent, and therefore, she agreed to dismiss any late fees ( for which I recently received a check for {$99.00} ). But, the damage is done. It was reported to credit agencies already. I asked her to report this situation to the Big 3 credit agencies, so that you can note this problem and provide an explanation in my records, but she refused to help me in any way.

And, for this reason, I asked her to close my Nordstrom account forever.

Company response to consumer: Closed with explanation