Consumer complaint received 2023-09-25
Company: TD BANK US HOLDING COMPANY
State: MD
Product: Debt collection
Sub-product: Credit card debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
Re. Target Redcard/ XXXX XXXX XXXX XXXX XXXX  XXXX Hello XXXX due to being unemployed for several months and not receiving unemployment payments for the majority of that time, my credit card use increased and I was unable to pay the charges for several months. After finding employment, I contacted XXXX in XX/XX/XXXX to set up a debt management plan ( XXXX ) ; Creditor accepted the proposal on XX/XX/XXXX per XXXX. I also received a letter dated XX/XX/XXXX from Target/Creditor confirming the details of my " Consumer Credit Counseling Payment Plan '', detailing that I was " only required to pay your fixed monthly payment amount '' of " {$60.00} '', and " Your account may be charged off under the following scenarios : " If you fail to make payments as agreed and your account reaches 120 days delinquent '' and/or " If there is a balance on the account that remains after the agreed upon end date as a result of missed or incomplete payments. '' Under these stipulations, I believed that everything would be fine as long as I paid on time per the XXXX  with XXXX, which I have since paid the first payment installment on XX/XX/XXXX ( I have also learned that it takes XXXX several days to disperse the payments. Hence, Creditor receiving the first payment on XX/XX/XXXX ). I was under the impression that everything was going well, until I attempted to log in to my Target Redcard account to get a statement for XXXX  purposes and received a message to contact Target regarding the account. I spoke with Target Customer Service, who informed me that my account had been deleted because the debt had been charged off in XX/XX/XXXX, and they couldn't provide any statements after then as my account was deleted. I wasn't aware of the charge off and inquired as to why it was charged off when Creditor had received payment on time per the XXXX  and if they still held the debt, and if so, how were they receiving money but not able to provide statements. Customer Service said they weren't aware of the XXXX and reiterated that my account had been deleted but Target still owned the debt. 

I called XXXX the next day to inquire about the charge off, of which XXXX Customer Service didn't have any knowledge. Several days later, I followed up with XXXX, as someone was supposed to look into it, and the XXXX Representative called Creditor and confirmed that the account had been charged off, though the exact details were unclear, and the XXXX Representative didn't understand how the Creditor was accepting payments but unable to provide me statements. I called Target Customer Service again for further clarification and was told again that my account was deleted so they couldn't provide statements but could tell me my balance verbally over the phone. When I inquired again about the charge off and read the letter that Target sent me stated above, Customer Service again repeated that the account was charged off, saying that the letter terms were " theirs [ meaning XXXX 's ] '', even though I had stated this was a letter from Target, not XXXX. 

As such, I believe that this is an unethical charge off at best as I believe I met the conditions of the letter they sent to me regarding the XXXX, but they charged off my account after accepting XXXX 's XXXX  and receiving timely payments - of which I never missed one payment or paid late, even taking consideration that the previous payment date for Creditor ( before joining the XXXX  ) was the XXXX of each month ( and the first payment on the XXXX  was received before the XXXX [ of XXXX ] )- which has had a devastating effect to my credit. I attempted to resolve this matter with the Creditor or at least get some understanding on the difference of understanding regarding the terms Creditor accepted per XXXX 's XXXX and stated in the letter Creditor sent to me. However, Creditor just affirms that they charged off my account ( I saw on my credit report account was reported as 120 days delinquent in XXXX ) and hasn't yet clarified on what the terms meant that they stated in their XX/XX/XXXX letter sent to me as they now seem vague and confusing to me ( i.e., why did Creditor charge off my debt and delete my account if I met the conditions of repayment per the XXXX Creditor accepted ). 

*I will gladly provide the aforementioned letter if needed. However, as I'm unable to redact my personal information, I'm not sure if I should upload it as an attachment to this complaint.

Company response to consumer: Closed with explanation