Consumer complaint received 2016-10-01
Company: TD BANK US HOLDING COMPANY
State: GA
Product: Credit card
Issue: Other

Complaint:
I was enrolled in a 12 Month Payment Option ( payment option ) plan ( Exhibit # XXXX ) that required a recurring payment schedule of pre-authorized debits which was automatically setup by Target Card Services in XXXX XXXX. The balance on the account was {$230.00} and the terms for the payment option with Target Card Services included a fixed monthly payment of {$10.00}, due on the XXXX of each month, no use of credit account while on plan and a reduced APR of 0 %. Therefore, under this payment plan, my credit was revoked and any pending payments scheduled through the Manage My REDcard website were cancelled. Per the payment option terms, the start date for the ACH debits began XXXX XXXX, XXXX in which {$10.00} was processed and the second ACH debit for {$10.00} was processed on XXXX XXXX, XXXX. 

I called Target Card Services on XXXX XXXX, XXXX and cancelled the payment option plan because I had filed Chapter XXXX on XXXX XXXX, XXXX. ( Exhibit # XXXX ) According to the Chapter XXXX plan, all debts must be paid through the Bankruptcy Court. I could not pick and choose which creditor to pay outside the Chapter XXXX plan. Therefore the payment option plan with Target Card Services had to be cancelled. 

On XXXX XXXX, XXXX, Target National Bank filed a Proof of Claim ( Exhibit # XXXX ) to the US Bankruptcy Court : claim totaled {$220.00} ( {$190.00} [ principal bal ] + {$30.00} [ fees ] ). According to Target 's 12 Month Payment Option plan, if payment option is cancelled, balance will include fees etc. It is evidenced in the Target National Bank Proof of Claim, account summary ( Exhibit # XXXX, XXXX ) that my account initial balance was reduced to {$220.00} after being enrolled in the payment option plan with Target Card Services. 

The Bankruptcy Notice to Creditors, dated XXXX XXXX, XXXX ( Exhibit # XXXX ) specifically states that creditors may not take certain actions to collect money etc. and the automatic stay immediately went into effect : Target Card Services did not cancel the payment option plan as I had requested on XXXX XXXX, XXXX. This was to STOP ALL ACH debits to my bank account. The third ACH debit for {$10.00} was processed on XXXX XXXX, XXXX and was unauthorized. My XXXX XXXX Bank Statement dated XXXX XXXX - XXXX XXXX, XXXX shows the unauthorized Target NAT'L Bank Bill Pay Transaction dated XXXX/XXXX/XXXX for {$10.00}. ( Exhibit # XXXX ) XXXX XXXX processed a Stop Payment Order against Target National Bank on XXXX XXXX, XXXX ( Exhibit # XXXX ) and XXXX XXXX XXXX XXXX. investigated and confirmed that it was an unauthorized charge. ( Exhibit # XXXX ) Target Card Services violated the bankruptcy automatic stay. 

XXXX XXXX of Target Card Services had written in a letter dated XXXX XXXX, XXXX that my account was sold to XXXX on XXXX XXXX, XXXX. The US Bankruptcy Court does not show that Target National Bank transferred their claim to XXXX. A " Transfer of Claim '' was filed on XXXX XXXX, XXXX by XXXX ( Ophrys ), XXXX, XXXX. Target National Bank is listed as the Transferor and had 21 days to object to the transfer. Target National Bank did not object and the US Bankruptcy court confirmed the transfer. ( Exhibit # XXXX ) The Dispute : Target Card Services, Target National Bank, TD Bank USA NA are inaccurately reporting in my XXXX XXXX XXXX that my account was 60 days late, they removed the initial reporting that account was included in Chapter XXXX Bankruptcy Wage Earner plan ( Exhibit # XXXX - initial reporting ) and they now report account as a " Charge off '' ( Exhibit # XXXX ) which is a violation of my rights under the Fair Credit Report Act. 

Target Card Services has indicated on XXXX XXXX, XXXX that account was sold to XXXX on XXXX XXXX, XXXX and that no Proof of Claim was filed in U.S. Bankruptcy Court. Target National Bank filed a Proof of Claim, which included the account summary, on XXXX XXXX, XXXX and their failure to give notice to the U.S. Bankruptcy Court of the sale to XXXX is a federal law violation

Company response to consumer: Closed with explanation