Consumer complaint received 2020-04-02
Company: TD BANK US HOLDING COMPANY
State: CA
Product: Credit card or prepaid card
Sub-product: Store credit card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
Internal payment system malfunction and merchant wants to charge late fees to consumers and report inaccurate data to the credit reporting agencies. They are not notifying consumers of their errors and they are blaming banks that they received a notice of no account on file On XX/XX/XXXX ; I submitted a credit card payment to target. My financial/ checking account information is already on file and has been used for the past 5 years with no problems. The way I make my payments all the time is through the automated system with my stored information. I usually pay my entire amount in full and I am never more than 30 days late on my payments. I submitted a payment for the full owed amount of XXXX dollars and some change. I usually check my credit cards every month to make sure theres no payment due. On XX/XX/XXXX ; I was doing a random check on all my credit cards. I realized I had a late fee on my target credit card as well as the automated system saying Im late more than 30 days. I had no knowledge of me using my target credit card recently or any transactions. I called target and spoke to a customer service agent and she advised me that it was for a charge from XX/XX/XXXX. She confirmed there was a payment attempt on XX/XX/XXXX, but stayed my payment was not processed. I asked her why it was not processed and she said they received an error message of no account on file. I advised her I do not re enter my account information because its already in the system and thats how I been making my payments for the past 5 years with the same account number on file. I advised her, I never received any notification from target about the payment not going through, I never received anything by mail, any phone calls, any alert, text or email. I advised the lady if I wouldnt of checked my card randomly I wouldnt of noticed it wasnt paid ; since nobody notified me. She confirmed that nobody notified me because I had my account set as private or dont bother. Which I dont recall putting such alert. However if that was in my account ; I advised her a late payment or not going through ; such things must be notified by mail, statement, message, phone call. She had no explanation as to why and just kept telling me that I didnt have alerts to get a phone call. I made the payment. I also called my bank asking why they denied a payment and my name advised me no history of such payment was requested around that date. I later noticed a reporting on my credit report. I do everything possible to take care of my credit score and report. I own 12 credit  cards and i am very responsible on making my payments on time. On my credit report I do not have any late reporting or any missed transactions so my payment history speaks on my payment responsibility which I was 100 percent on time payments on my credit report. I called target again to file a complaint on their system and the rep advised me that they received an error message saying no account on file she said I must have entered an incorrect account number. I advised her theres no way I entered an incorrect account number because the system already has my account number. I advised her that every time I make a payment, I do not need to enter my account number but just confirm the payment amount ; since the system already has my account number. I advised her the same account has been on file for 5 years and my payments always get processed. She called my bank on three way and confirmed the account number target has with my bank. My bank confirmed that is the correct account number and my bank also confirmed with target rep that No payment got requested by target on XX/XX/XXXX or after. My bank advised target rep that there was no record of target ever requesting that payment or any history. The bank lady also advised me that the same thing happened to her in XXXX from target bank. I submitted a complaint with target credit card and requested to please correct my credit report. 
In XX/XX/XXXX, I received a letter from target regarding my complaint. The letter states, the reason for the payment not getting processed was NSF Insufficient funds. They have lied to me and I dont know how many other consumers they are lying to. I had XXXX XXXX dollars in my bank on XX/XX/XXXX. There is no evidence of NSF from my bank. I would have that showing on my bank statement and I would also have a fee from my bank and my bank wouldve confirmed that with target and me. I would like your help in this matter please so they can stop doing this. I can submit the letter they send me. Im sure their calls get recorded and you can hear both times how they told me they received an error message of account not on file also how my bank confirmed the account number to be accurate to what they have on file. I can also send a copy of my statements to show there was never a payment requested from target and how I had enough money to cover the payment. I feel they are taking advantage of consumers and hoping they can do random internal errors like this and charge late fees and do fraudulent reporting to the credit reporting agencies. I used to work for the bank as well and I am aware of how NSF works. There would be record of an NSF on my statement. My main complaint is for them to correct my credit report and not report fraudulent information again and for them to not do this again to consumers. Thank you.

Company response to consumer: Closed with non-monetary relief