Consumer complaint received 2024-05-26
Product: Checking or savings account — Savings account
Issue: Managing an account — Banking errors
Company: AXOS FINANCIAL, INC. (MA)

Complaint to CFPB Regarding Missing Disclosure of XXXX Verification Debits and the use of Implied Withdrawal Authorization concept Date : XX/XX/XXXX Financial Institution : UFB Direct Nature of Complaint : Missing Disclosures, Use of " Implied '' Authorization for Debits, and Unresponsive Customer Service Summary of Complaint XXXX UFB Direct lacks clear disclosure about debits associated with micro-deposit verification when linking external accounts. In XXXX, I experienced a {$0.00} debit during this process with my XXXXXXXX XXXX XXXX account. Despite reviewing UFB Direct 's disclosures ( terms and conditions, website messages ), I found no information outlining customer authorization for such debits. 
In XX/XX/XXXX, I received a {$10.00} credit on my UFB Direct account for the fee that was charged to me by XXXX XXXX XXXX  and thanked UFB Direct for that. However, since the {$0.00} debit in question was not authorized by me and caused a violation of my contractual obligations with XXXX XXXXXXXX XXXX, I informed UFB Direct that I have not received any letters from UFB Direct/Axos Bank , that I can present to XXXX XXXXXXXX XXXX in order to restore my reputation with them, indicating that the {$0.00} withdrawal transaction in XX/XX/XXXX was not authorized by me. 
I had also requested UFB Direct " Is there a document, a disclosure of terms and conditions, or even a UFB Direct message displayed on its website that says that by initiating a micro-deposit verification process when adding an external account a customer authorizes a debit from the external account that UFB can perform without providing a notice to the customer? '' In its responses UFB Directs representative XXXX : mentioned a final screen advising of micro-deposits during the external account addition process ( That screen does not have a direct mention of debits or withdrawals ). 
provided a video from another bank about micro-deposits, not UFB Direct 's terms or conditions of the serivice. 
Argued that " it is implied '' that customers understand the debits because the micro-deposits aren't theirs and never responded to my request what is the meaning the term implied when it comes to withdrawal authorizations. 
While I understand the purpose of micro-deposits, I never authorized UFB Direct to withdraw funds from my external account without prior notice. I contacted UFB Direct customer service in XX/XX/XXXX, to inquire about any written documentation ( terms and conditions, website message ) outlining customer authorization for such debits. 
Despite several attempts to obtain clear disclosures about the withdrawals, including friendly reminders on XX/XX/XXXX and XXXX, XXXX, UFB Direct has not provided a clear answer. Their responses focused on the nature of micro-deposits and industry practices, but never addressed the existence of written customer authorization for the surprise debit. 
Expected Resolution : I believe that UFB Direct should provide me a letter that I can present to XXXXXXXX XXXX XXXX in order to restore my reputation with them, indicating that the {$0.00} withdrawal transaction in XX/XX/XXXX was not authorized by me. 
Attached Documents : Relevant portions of the conversation with UFB Direct customer service representative XXXX ( XX/XX/XXXX - XX/XX/XXXX ) Thank you for your time and attention to this matter.