Consumer complaint received 2025-11-25 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: Credit Karma, LLC
State: OH

Complaint narrative:
I am filing this complaint because Credit Karma ( through XXXX XXXX, Member FDIC ) failed to return {$5500.00} of my own funds following the involuntary closure of my Credit Karma  Money Spend and Save accounts, despite clear and documented instructions I provided to prevent this exact situation. Their actions resulted in the funds being transferred into a compromised XXXX XXXX account that was taken over during an identity theft incident. I was therefore unable to receive the money, and I remain unable to recover it. 

Timeline and details : 1. Identity theft and account compromise : In 2025, I became the victim of a serious identity theft incident. My email accounts were hacked, several of my financial accounts were accessed by an unauthorized individual, and new credit lines were opened fraudulently in my name. Multiple banks, including XXXX XXXX, confirmed suspicious activity and account compromise. I filed an FTC Identity Theft Report and began the process of freezing my credit and disputing unauthorized accounts, transactions, and charges across several institutions. 

2. My XXXX XXXX external account was compromised and inaccessible : As part of this identity theft incident, my XXXX XXXX checking account, the same account that XXXX XXXX had on file as my external linked account, was accessed by a fraudster. I lost access to the account because the unauthorized individual took control of the login credentials, changed contact information, drained the account, and interfered with the recovery process. I could not regain access, and XXXX XXXX initiated fraud processes on their end. The account was effectively closed or frozen for investigation. 

3. I notified XXXX XXXX in advance and gave explicit instructions not to send any funds via XXXX : Before Credit Karma processed any return of funds, I contacted their support team and reported that the external XXXX XXXX account was compromised, inaccessible, and fraudulent. During these calls, I specifically instructed XXXX XXXX NOT to transfer the remaining balance via XXXX to that account. I asked that any return of funds be issued only via paper check, mailed to my updated mailing address. Representatives verbally confirmed understanding of my instructions. 

4. Credit Karma ignored my instructions and transferred {$5500.00} to the compromised XXXX XXXX account anyway : On XX/XX/year>, Credit Karma closed my Spend/Save accounts and transferred the entire remaining balance of {$5500.00} via XXXX to the XXXX XXXX account I had clearly stated was compromised. The funds settled into that account on XX/XX/year>. I had no access to the account at that time. The individual who had committed identity theft had taken control of it. 

Because of this unauthorized transfer, I did not receive any of the {$5500.00}. 

5. XXXX XXXX confirmed they can not return the funds because XXXX XXXX sent them into the compromised account : I contacted XXXX XXXX with the trace number provided. XXXX XXXX confirmed the funds had settled into the account that was part of the fraud case and that they could not retrieve or reverse the transfer because XXXX XXXX initiated it despite my instructions. XXXX XXXX stated that responsibility for the transfer lies with XXXX XXXX since they used an account I explicitly reported as compromised. 

6. XXXX XXXX XXXX sent a separate {$93.00} replacement check but misrepresented it in their response : Several weeks later, on XX/XX/year>, XXXX XXXX XXXX a {$93.00} check for unrelated XXXX merchant credits that were deposited after my account closure. That check was originally mailed to an old address, then reissued correctly after I updated my address. 

In their CFPB response, XXXX XXXX incorrectly implied that I received the funds because I successfully deposited this {$93.00} check. This has no connection whatsoever to the missing {$5500.00} and is misleading in the context of the complaint. 

7. Credit Karmas first CFPB response contained factual inaccuracies and failed to address the core issue : In their XX/XX/year> response to my first CFPB complaint, Credit Karma asserted : that I notified them after the ACH transfer ( this is false ), that no error occurred ( despite the transfer contradicting my instructions ), that they can not reissue the funds because XXXX XXXX can not return them, and that a small {$93.00} check somehow shows I received the funds owed. 

Their response ignores the critical fact that XXXX XXXX sent the funds to a known compromised account against my instructions, which meets the definition of operational error and negligence. 

Because of this, I have been deprived of {$5500.00} of my own money through no fault of my own.

Company response to consumer: Closed with explanation