Consumer complaint received 2020-01-07
Company: CAPITAL ONE FINANCIAL CORPORATION
State: VA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Cashing a check

Complaint:
On XX/XX/2019, I deposited a check of {$2800.00} to my checking account. The balance was available the next day ; therefore, I made payments using the deposited amount. 2 days later however, the check was reversed by the bank because it was a fraudulent check. I received no notice prior to the reversal or after from the bank until I personally noticed it and called about it myself. Due to this incident, I lost {$2600.00} and have filed a complaint through CFPB about the inconvenient and unfair way the bank dealt with the situation. The response I got from the bank after filing the complaint was that this information was all in their disclosure and they were simply acting by those rules. 

Having read their disclosure, I noticed that they are neglecting some of the most basic responsibilities as a financial service provider when it comes to consumer protection. Their disclosure indicates the following : " Accepting Items for Deposit [ : ] We will accept items for deposit, but act only as your agent for collection and assume no responsibility for these items, beyond the exercise of ordinary care '' " If you make the deposit in person to one of our employees, funds from the following deposits will be made available on the first business day after the day of your deposit '' " Funds you deposit by check may be delayed for a longer period under the following circumstances : We believe the check you are depositing will not be paid. '' " We may limit, refuse or return all or any part of a deposit without prior notice to you '' " Unless we have acted in bad faith, we will not be liable for special or consequential damages, including loss of profits or opportunity, or for attorneys fees incurred by you '' From 360 Account Disclosure and Rules Governing Deposit Accounts ( https : //www.capitalone.com/bank/rules-governing/disclosures/ ) When they indicate that the balance will be available the next business day and that the check may be delayed if they believe the depositing will not be paid, they imply that the bank will do their due diligence of making sure that the check is not fraudulent. Clearly from this incident, that was not the case. Likewise, they state that they will hold no responsibility " beyond the exercise of ordinary care ''. " Ordinary care '' as a financial service should include confirming that these checks are valid before making the balance available to customers and not the other way around. Moreover, asserting that they will not make any prior notice for refusing a deposit is simply neglecting their critical responsibility as a financial service provider to inform their customers. Lastly in response to the last rule, I believe that they have acted in bad faith because their rules are misleading and violate the basic responsibility of a financial company of protecting its consumers. 

In an age where devices to maintain cyber security and communication are established, the bank does little to none to offer their consumers the most basic protection. Therefore, I am filing this complaint to report that this bank is unfair and deceptive in their practices.

Company response to consumer: Closed with explanation