Consumer complaint received 2024-07-27
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: SOFI TECHNOLOGIES, INC. (CO)

On XX/XX/XXXX, I made a purchase totaling {$620.00} at XXXX XXXX, accompanied by XXXX refunds of {$330.00} and {$17.00}. During this visit, I believe I lost my card at the store. Subsequently, my card was used for XXXX unauthorized transactions at the same XXXX XXXX, amounting to {$1600.00}, {$1900.00}, {$210.00}, {$590.00}, and {$1000.00}, totaling {$5400.00}. 

I realized my card was missing on XX/XX/XXXX and immediately contacted SoFi to report the unauthorized transactions and request a replacement card. On XX/XX/XXXX, I filed the first dispute for the initial XXXX charges that had posted. I was informed that XXXX charge had not fully posted, so I waited until XX/XX/XXXX to dispute the final unauthorized charge. Both times, within XXXX business hours, I was notified that my requests had been denied. 

Upon calling for an explanation, I was told that my case would be escalated and that I would receive communication from the back office department within XXXX business days. However, after the XXXX period, I received no documentation regarding the denial of my disputes. I contacted SoFi again, and once more, they claimed to escalate the issue. Frustrated by the lack of response, I insisted on speaking with someone else and was advised to reply to the denial emails sent from XXXX and XXXX. My attempt to contact these emails resulted in automated responses indicating that the accounts were not monitored. 

Eventually, my case was directed to account XXXX XXXX XXXX, who initially offered assistance. However, when I requested the necessary documentation, he responded only by reiterating that my disputes were denied. After XXXX more rounds of further insistence, he finally provided the documents, citing reasons for denial such as my previous transactions at XXXX XXXX, my failure to report the card lost within XXXX days ( although I reported it immediately upon realization ), the timing of the transactions appearing as if XXXX fraudulent transaction occurred before my last authorized payment, and that there was no suspicious online activity. 

Upon further inquiry, I received a final report from SoFi trying to justify the denial of my disputes due to similar account activity and no declines for PIN entry or insufficient funds.

Violations of Law and Breach of Contract and Fiduciary Duties Identified : 1. Failure to Provide Timely Documentation : Regulation E ( Electronic Fund Transfer Act - EFTA ) : SoFi did not provide the required documentation within the legally mandated time frame, violating regulations that require timely responses to dispute inquiries.

2. Improper Handling of Disputes : Regulation E ( EFTA ) : The denial of my disputes without proper investigation and the failure to provide clear, legitimate reasons for the denial contravenes consumer protection laws under this regulation. The justification based on similar account activity, no declines for PIN entry or insufficient funds, and non suspicious login activity is insufficient and has no evidence that the transactions were authorized by me. 
Consumer Financial Protection Act ( CFPA ) : This act prohibits unfair, deceptive, or abusive acts or practices ( UDAAP ) by financial institutions. The improper handling of disputes and providing insufficient or misleading reasons for denial can be considered unfair or deceptive practices.

3. Failure to Monitor Customer Service Emails : Truth in Savings Act ( TISA ) : This act requires banks to provide clear and accessible communication channels for customers. Automated responses indicating that customer service emails are not monitored can be seen as a failure to maintain adequate customer support. 
UDAAP under CFPA : Failure to provide proper customer service and accessible communication channels can also be considered an unfair practice.

4. Breach of Contract : By failing to properly investigate and resolve my dispute in accordance with EFTA and providing inadequate reasons for the denial, SoFi has breached the contractual obligations they owe to me as a customer.

5. Breach of Fiduciary Duties : SoFis failure to properly handle my disputes, provide timely documentation, and maintain adequate customer service channels constitutes a failure to act in good faith and in my best interests as their customer.