Consumer complaint received 2025-07-22 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: Exto Inc.
State: WV

Complaint narrative:
I am filing a formal complaint against Atlas XXXX for deceptive and misleading business practices involving its secured credit card product. Specifically, Atlas is misrepresenting the terms of their cardholder agreement, applying inconsistent internal policies, and penalizing me for following the official terms as stated in their legally binding agreement. 
On or around XXXX XXXX, I experienced a situation in which my Available Credit ( Spend Power ) did not update accurately after I paid off my XXXX following all terms outlined in the Cardholder Agreement. 
I initially funded my card by transferring a small amount ( {$10.00} {$20.00} ) from my external bank account. 
I later transferred {$100.00} to my Spend Account, which increased my available credit to {$110.00}. 
A few days afterward, I transferred an additional {$100.00} to my Deposit Account ( which is separate from my Spend Account and was never used to establish collateral ). 
At the time of my {$96.00} card balance, I had {$13.00} available credit left. 
I used funds from my Deposit Account to pay the {$96.00} balance. 

After paying off my card, I expected my Available Credit to increasebut it remained at only {$13.00}, and eventually dropped to {$3.00}. This contradicts the policy outlined in the Cardholder Agreement, which states : When Atlas receives a payment and applies it to your Atlas Card Balance from a payment method other than a transfer from your Linked External Account, your Available Credit on your Atlas XXXX Account will increase in an amount equivalent to your payment. 

I paid using funds from my Deposit Account ( not my Linked External Account ), and yet my Available Credit was not restored, and my payment was treated as if it decreased my XXXX  XXXX no collateral agreement being established initially. 

Furthermore, I was never assigned a Credit Limit upon opening my account, despite the agreement stating : We will assign a credit limit ( Credit Limit ) to your Card Account Customer service insists that my Deposit Account balance acts as collateralbut this is not reflected in the Cardholder Agreement. There is no clause that explains how funds deposited after credit is extended retroactively become collateral. Nor is the Deposit Account clearly defined or described as collateral in any formal contract I was provided. 

Why This Is Concerning : Misrepresentation of Terms : Atlas staff repeatedly contradicted the written Cardholder Agreement, telling me that payments from my Deposit Account reduce my Spend Power. This is in direct conflict with the section on Effect of Payment on Available Credit.

Deceptive Practices : Their FAQ section and customer service responses appear to have been recently updatedconveniently aligned with the timeline of my disputewithout informing users of new or changing policies. 
XXXX & XXXX : Every time I asked for clarification on the contract language, customer service dismissed my questions and failed to address the clear contradictions I raised. Their responses were vague and evasive. 
Unjust Penalty : I followed the agreement exactly. Instead of being rewarded for making on-time payments, I was penalizedand my available credit dropped despite fulfilling all obligations. 

Desired Resolution : XXXX. Correction of My Account : I want my full Available Credit restored in alignment with the Cardholder Agreement, reflecting the {$96.00} payment I made using funds outside my Linked External Account. 
XXXX. Policy Transparency : Atlas should clearly and publicly clarify whether post-funding Deposit Account transfers are treated as collateral, and revise their agreement accordingly. 
XXXX. Accountability : If Atlas has been applying inconsistent or undocumented policies to other customers, this should be investigated as a broader pattern of deceptive conduct. 
XXXX. Monitoring : I request regulatory monitoring of Atlas to ensure all terms are applied fairly and as disclosed in the agreements. 

I am also exploring filing similar complaints with the Federal Trade Commission ( FTC ) and my state Attorney General due to the potential violation of consumer protection laws. 

Please let me know if you need any documentation to support this complaint. I have email correspondence, screenshots, and a copy of the Cardholder Agreement downloaded directly from the Atlas app.

Company response to consumer: Closed with explanation