Consumer complaint received 2023-07-21
Company: Atlanticus Services Corporation
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
I hope this letter finds you well. I am writing to file a complaint against Fortiva regarding the assessment of excessive late fees on my credit card account. I believe these fees are unjustified and not in compliance with the Credit Card Accountability Responsibility and Disclosure Act of 2009 ( CARD Act ). 

In XXXX of this year, I encountered a banking error that prevented me from making the full payment on my credit card account. As a responsible and conscientious cardholder, I promptly contacted Fortiva to report the issue, ensuring they were aware of the situation and my genuine intention to fulfill my obligations. During my call, the representative assured me that my situation would be noted in my account and that the fees would be waived due to my previous good standing and communication with the company. 

However, to my disappointment, a {$30.00} late fee was still assessed on my account for that month. Distressed by this inconsistency, I immediately contacted Fortiva again to address the matter. On this second call, I was informed that the fee would be deducted from my balance. Nevertheless, this does not resolve the fundamental issue of unjustified fees being imposed upon me despite my efforts to act responsibly and communicate effectively. 

In XXXX, I was unfortunately late by less than 12 hours in making my payment, resulting in a staggering {$40.00} late fee being added to my account. Although I acknowledged my tardiness, I refrained from contacting Fortiva this time, assuming that my late payment automatically triggered the assessment of the fee. Nevertheless, this recurring pattern of excessive fees is deeply concerning and seems disproportionate to the minor timing oversight. 

Recently, my most recent payment was submitted on the payment date itself, only to receive an alarming text message the very next day, claiming that my payment was late. Baffled by this discrepancy, I immediately contacted Fortiva again, armed with an email confirmation and bank records showing that a payment had indeed been made on time. To my astonishment, I was then informed that the payment was considered late due to a specific cutoff time of XXXX XXXX Eastern time, while my payment was submitted at XXXX XXXX 

As a responsible consumer, I take these obligations seriously and expect transparency and fairness in return. The late fees assessed on my account appear excessive and do not seem to align with the principles outlined in the CARD Act. According to the Act, late fees must be " reasonable and proportional '' to the violation, and they should be directly related to the actual costs incurred by the credit card company due to the late payment. 
In light of these circumstances, I kindly request the following actions to be taken by Fortiva : 1. Immediate refund of all late fees assessed in XXXX  and XXXX, along with any interest accrued as a result of these fees.

2. Assurance that no late fee will be applied to my account for July.

3. Thorough review and adjustment of all fee ( s ) assessment processes to ensure adherence to the CARD Act 's principles of reasonability and proportionality.

I firmly believe that my request aligns with the guidelines outlined in the CARD Act and seeks to uphold fair practices in the credit card industry. I trust that Fortiva will promptly address these concerns and take appropriate measures to rectify the situation. 

I have attached relevant documents, including payment confirmations and communications with Fortiva, to support my claim. Please consider this information while investigating my complaint. 

Thank you for your attention to this matter. I look forward to a timely resolution of this issue and the restoration of fairness in my credit card account. 

Sincerely, XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation