Consumer complaint received 2017-05-14
Company: TD BANK US HOLDING COMPANY
State: TX
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
This complaint is with Target Redcard. This involves fees levied after I experienced theft In my banking account, which forced me to change my billing bank account information associated with my Target XXXX. <P/>I 've been enrolled in XXXX auto-pay for several years, which has always deducted my statement account balance from my bank as an auto-payment. When I changed my bank account in XXXX, I did forget to update my target XXXX  auto-pay info. As a result, the XXXX XXXX payment went to my closed account, it was rejected and I was charged a {$27.00} fee plus another {$1.00} fee. Upon relalizing my mistake on XXXX XXXX, I logged onto my account, added my new bank account, and paid off my entire balance in full, leaving me at a XXXX balance. I noticed the auto-pay did n't seem to take or finalize, so I called XXXX customer service to make sure I was doing everything right, so there were no further issues. I was told it takes a few days for auto-pay updates to process, so I needed to log in again later to finalize. The operator also acknowledged that she saw I had paid my balance in full for XXXX so that gave me plenty of time to make sure things were correct before the XXXX billing cycle. The key here, is that this a credit card, not a debit card. Previous auto-pays processed for the previous months closing statement amount, never my current balance. So here, I had a XXXX  balance on XXXX XXXX. On XXXX XXXX I went to Target and made {$130.00} in purchases. On the same day, XXXX XXXX, XXXX drew {$130.00} from my old accont. Having made that XXXX purchase since I had payed my bill in full on XXXX XXXX, it reminded me to make sure the auto-pay was updated and correct for my next statement cycle, On XXXX XXXX I logged in to my account to find the {$130.00} purchase I made on XXXX XXXX was deducted immediately from my account that same day. ByXX/XX/XXXXI had incurred another {$27.00} charge because it went to the old account. Again, it 's a credit card, not a debit card, and payments were set up to draw off the current statement balance ( which was always from the previous month ). I 've spent over 6 hours on the phone with Target XXXX, and talked to over 10 different employees. At about hour 5 on the phone with XXXX staff and supervisors! XXXX finally informed me that when you pay off your account in full with a one time transaction, the next auto-pay will then default to take any active balance ( not just your statement balance ). XXXX said that by zeroing out my account on XXXX XXXX, that gave Target XXXX auto-pay permission to then take any active balance as part of the Auto-pay scheduled on XXXX XXXX. I asked why I was n't given this important information when I called in on XXXX XXXX. I was simply told it was my fault, not theirs. I talked to 5 supervisors XXXX, XXXX, XXXX, XXXX and XXXX. <P/>Very unpleasant experience. Was told this was my tough luck, and there was no escalation beyond them, but I could try writing a letter. I 've included a snapshot of my transaction statement. Remember this a credit card, not a debit card, but it shows my bank account was debited the same day I made the purchase. In fact, the bank draft posted 1 line item before the purchase posted. <P/>I 'm asking for the second {$27.00} fee to be waived. The first mistake was mine, but I paid off my complete balance in full, and called into customer service to make sure I was good, and would have no issues in the future. XXXX failed to inform me of their auto-pay practices. Even talking to a supervisor, it took the 4th supervisor to offer an any explanation as to why a credit card would withdraw your account for a purchase you made the same day. The whole experience screams of mismanagement and consumer fraud. Target XXXX turned my credit card into a same day billed debit card without adequately informing me. In lieu of the fee being waved, I also would take a target gift card worth {$27.00} and call it a day. <P/>XXXX XXXX Target Redcard Customer Phone number is XXXX

Company response to consumer: Closed with explanation