Consumer complaint received 2023-05-18
Company: VYSTAR CREDIT UNION
State: FL
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
I have been a member of VyStar Credit Union for over 30 years and am extremely disappointed in the lack of knowledge they have regarding consumer rights pertaining to Reg E disputes. On XX/XX/2023 I was a victim of an online scam that resulted in a total of {$2000.00} being taken out of my checking account via XXXX XXXX. On XX/XX/2023 I contacted VyStar 's member service team to close the account and report the fraud that took place. Upon calling the transaction for {$1000.00} was posted to the account while the other for {$1.00} was still pending. I advised the rep that I was a victim of an online scam and needed to dispute the posted transaction of {$1000.00} and place a hold on my checking account to prevent any more fraudulent withdrawals. I was advised the account was locked from having withdrawals but could still receive deposits and that BOTH transactions had been disputed. Knowing that one of them was still pending, I asked if she was sure she was able to dispute both of them and she confirmed she did. On XX/XX/2023 I went into a physical branch, opened a new checking account and obtained a new debit card. I was advised by the member service rep that there were no notes in the account regarding the phone call I made the day before. She also confirmed that the pending transaction for {$1000.00} was in fact NOT disputed because it wasn't posted to the account yet ( just as I had assumed ). On XX/XX/2023 once the transaction for {$1000.00} was posted, I called member services again to dispute it. The phone rep was persistent on entering the claim as if I received good or merchandise from the transaction in which I didn't. This was strictly a financial transaction. Although I questioned the accuracy of the claim, she proceeded and entered it anyway. Also, on XX/XX/2023, I emailed XXXX XXXX  who was handling the dispute, my written confirmation and proof this was a scam, well within the required 10 business day timeframe for BOTH disputes that were verbally initiated. On XX/XX/2023 I received a provisional credit in the amount of {$1000.00} for the first disputed transaction. I called Card Services to inquire as to why only received a provisional credit for one of the transactions, I was advised the claim was input incorrectly and there was nothing I could do other than to allow the investigation to take place until completed. On XX/XX/2023 I was mailed a letter for both disputes saying that they were denied due to the transaction being a P2P ( person to person ) and the provisional credit of {$1000.00} would be deducted from my account on XX/XX/2023 ( ONE day after physically receiving the mailed letter )! I know P2P transfers are covered under Reg E so I called XXXX XXXX to speak with someone about providing clarification if needed and also asked to speak with the supervisor XXXX who denied both claims. I was told by two different supervisors, XXXX and XXXX, that XXXX doesn't speak with members via transfer, can't call member back, and doesn't have an email to relay a request for a callback. I was also told that I wasn't able to appeal this decision. Since when?! A consumer ALWAYS has a right to appeal the dispute decision! XXXX XXXX then directed me to XXXX XXXX  where I spoke to Supervisor, XXXX, who also cared nothing about what I was claiming, didn't take into consideration at all that the disputes weren't correctly input when I made the verbal claim and prevented me from receiving both provisional credits, and acted too tired to look into my concerns. In the meantime I'm out of {$2000.00} due to an online Ponzi scheme and my credit union won't even protect me and my funds under my consumer rights.

Violations in the dispute process : - Initiated incorrectly via verbal claim w call center - Denied Provisional Credit even though a written confirmation was submitted within 10 business days - Claim denied based on being a " person to person transaction '', which IS covered by Reg E - Was not advised as required in 11 ( d ) ( 2 ) ( ii ), and upon the reversal of a provisional credit, that " the institution will honor checks, drafts, or similar instruments payable to third parties and preauthorized transfers from the consumer 's account ( without charge to the consumer as a result of an overdraft ) for five business days after the notification. The institution shall honor items as specified in the notice, but need honor only items that it would have paid if the provisionally credited funds had not been debited. '' - Denied the right to documents used to reach the resolution of their denial - Denied the right to appeal the decision made Based on the negligence to comply with the above requirements, I qualify for a reassertion of error and demand a full and permanent credit of the total disputed amount of {$2000.00}.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief