Consumer complaint received 2022-03-21
Company: Lending Club Corp
State: WA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
This complaint concerns a business account with XXXX XXXX ( now Lending Club Bank ) in the name of XXXX XXXX a sole proprietorship that I own and operate. On XX/XX/XXXX, I had a backpack stolen from me on a XXXX city street while waiting for a ride. I reported the theft that day to the XXXX Police Department and indicated in the report that my wallet was inside my backpack and that financial information including my business debit card for XXXX XXXX was likely missing. My phone was taken during the incident too. 

I communicated all of this to various representatives at XXXX XXXX  in several calls and messages in the subsequent few days yet {$3300.00} in unauthorized charges were made using my XXXX XXXX business debit card draining my account to a balance of {$8.00}. I didn't fully become aware that my account was missing so much money until XX/XX/XXXX when I reviewed my monthly statement. My point of contact at the Bank was XXXX XXXX and he stumbled through the process to say the least. He promised to initiate the claims immediately based on the card being lost or stolen and that I would be credited the missing funds in 10 days. The claims were not filed. In fact, one week later XXXX admitted to me on the phone that he had forgotten and nothing had been done but promised to " send me everything '' that day. 72 hours later I received a claim form through docusign that did not include all of the transactions we had discussed or a correct factual timeline and his remarks that the card was lost not stolen. This clerical mess was eventually corrected. However, I was never credited the missing funds. Instead one week later I received a check for {$8.00} the balance of the account from the bank as they had closed my account. 
Over the next few weeks and months the Bank insisted that my funds were not protected since I had a business account and a debit card was used in the transactions. There would be no credit and it was hinted that the bank felt I was at fault despite me being a victim of a violent crime. I tried to appeal this decision but in XXXX of XXXX the Bank told me since the account number # XXXX is a business account we can not appeal the decisions on the disputes since business accounts are not protected by regulation E guidelines and when we do not have chargeback rights, we can not appeal the decision. We do apologize for any inconvenience this may have caused you and we appreciate your understanding. I believed the bank and I moved on feeling fortunate I had my health. 
However, last month a separate matter I had with Lending Club Bank was finally resolved with the CFPB 's help and in the process the bank 's pattern of deception and lies to me are clear. In the recent case, I filed a complaint against the bank six months after I had reported being overcharged {$2100.00} by a merchant on a repair bill. The bank filed a chargeback on my company 's behalf but then told me ( 47 times between XX/XX/XXXX and XX/XX/XXXX ) that my money wasn't protected since I had used a business debit card. After the CFPB reached out, the bank finally admitted that my dispute was covered and that they owed me protection for the missing funds under XXXX 's zero liability policy which I had argued all along covers my small business account. 
However, even with the return of money owed in that case their failure to understand XXXX 's policy and its application was front and center in a letter they sent to me on XX/XX/XXXX and it is this same letter that pulled back the covers on the Bank 's lies to me about the {$3300.00} that was taken from me well over a YEAR AGO in XX/XX/XXXX. In that letter 's 4th paragraph the Bank explains " a review of XXXX zero liability policy led to the conclusion that protection would only apply in cases of loss or theft of their debit card ''. The Bank had inadvertently told on themselves in the older matter that involved my stolen debit card in trying to excuse their delay in not telling me I was protected in the matter where I was overcharged.

Company response to consumer: Closed with explanation