Consumer complaint received 2026-07-01 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: UNITED COMMUNITY BANK
State: SC

Complaint narrative:
CFPB Complaint RE : United Community Bank Product Select : Money Transfer / Virtual Currency XXXX XXXX : United Community Bank XXXX XXXX XXXX XXXX, XXXX XXXX, South Carolina XXXX Statement of Facts & Consumer Violation I am filing this formal complaint against United Community Bank for a total failure to seriously and thoroughly investigate a commercial merchant scam, violating its own published fraud policies, and engaging in retaliatory actions by cutting off my network access as if I were the perpetrator. On XX/XX/year>, I authorized a XXXX payment to a registered commercial entity operating under the business name XXXX, XXXX. This transfer was explicitly conditional upon a contract for physical repair services on my keyboard. The merchant engaged in explicit fraudulent inducement and consumer misrepresentation : they did not perform the repairs, returned the physical asset in a destroyed and unplayable state, and attempted to substitute the service by sending unsolicited, non-functional, untitled digital audio files. Failure to Investigate When I initially reported this merchant scam to United Community Bank, the bank failed to conduct a proper or meaningful investigation. They summarily denied my claim, ignoring the fact that the recipient is an enrolled business entity utilizing their payment network to execute merchant fraud. The bank completely disregarded its own consumer-facing corporate policy, which explicitly states : " Qualifying imposter scams may be eligible for reimbursement. '' By refusing to review the merchant 's contract breach and fraudulent misrepresentation, the bank failed to protect my consumer funds. Retaliatory Account Restriction & Deceptive Practices Furthermore, following my reporting of this fraud, United Community Bank abruptly deactivated and shut off my ability to use the XXXX XXXX entirely. Instead of investigating the fraudulent business entity ( XXXX, XXXX ), the bank penalized methe victim. Punishing a consumer for reporting a crime is an Unfair, Deceptive, or Abusive Act or Practice ( UDAAP ) under the Dodd-Frank Act. Deactivating my XXXX access without due process because I flagged an outbound fraud event is discriminatory, retaliatory, and serves to block me from utilizing standard banking services. It shows that the bank 's automated or internal risk systems are penalizing victims rather than targeting fraudulent commercial merchants. Desired Resolution To resolve this complaint, I demand that United Community Bank 's Compliance and Executive team execute the following actions : 1. Reopen the investigation regarding the commercial fraud perpetrated by the XXXX merchant XXXX, XXXX. 2. Issue a full reimbursement of the disputed amount ( {$600.00} ) under the bank 's specific " qualifying imposter scam '' policy. 3. File an Outbound Fraud Report XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX ) to flag the XXXX, XXXX business account to prevent further consumer victimization. 4. Immediately restore my full XXXX network access and remove any negative risk flags or restrictions mistakenly applied to my profile for reporting this incident. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation