Consumer complaint received 2025-08-22 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with rewards from credit card
Company: CAPITAL ONE FINANCIAL CORPORATION
State: TN

Complaint narrative:
In XX/XX/year>, I mistakenly initiated a {$500.00} payment from an external account not belonging to me. This mistake was not reckless it was only possible because of Capital Ones archaic system design. Unlike other banks, Capital One failed to perform the mandatory verification process ( e.g., two small test deposits ) before allowing me to link and use an external account. Instead, their app defaulted that external account to pay my Capital One credit card.

I take responsibility for unknowingly selecting the account presented to me as the top choice by Capital Ones app. But the bank must take responsibility for not putting in place the most basic consumer protections that every other major bank uses. In fact, I was shocked to learn that Capital One allowed money to be pulled from another persons account without proper verification. 
As soon as I discovered the mistake, I reimbursed the account holder in full from my Capital One 360 savings account. No one not Capital One, not the account holder suffered a loss.

Despite this, Capital One froze my Quicksilver and Savor accounts and is withholding {$1000.00} of my money : {$760.00} in merchant refunds already processed. 
{$210.00} in Quicksilver rewards cash I earned.

{$94.00} in Savor rewards cash I earned.

Capital One staff admit the only resolution is for me to provide proof that I had authority over the external account. I never had such authority. They know this condition is impossible to satisfy. Offering an impossible resolution to justify indefinite withholding is not only unfair, but willful misappropriation of consumer funds, which should be treated as criminal conduct.

This violates the Truth in Lending Act / Regulation Z ( refunds must be credited to cardholder accounts ) and is an unfair, deceptive, abusive act or practice ( UDAAP ) to withhold rewards I lawfully earned from my spending spending from which Capital One profited through interchange fees and
interest.

The consumer harm has been extreme. I have spent over 10 hours on the phone with Capital One, speaking to 56 different representatives and account managers, none of whom had authority to resolve my case. Managers refuse to take calls. Complaints are refused or absurdly routed back to the very people I was complaining about. Staff have been dismissive, unempathetic, and sometimes arrogant. For example, XXXX ( ID XXXX ) falsely promised a call within 5 days regarding my refunds and rewards ( which never happened ) and refused to explain how I could escalate my complaint. Another employee, XXXX, was equally dismissive.

Capital One does not even provide customers with a functioning complaint email or online escalation channel. One is forced into a cycle of repeated phone calls to poorly trained staff, which prolongs the harassment.

This experience has caused me not only financial harm, but also embarrassment, mental anguish, and distress all because Capital Ones outdated system allowed an error that should never have been possible, and then the company chose to punish me further by withholding my own refunds and rewards.

Company response to consumer: Closed with explanation