Consumer complaint received 2025-05-29 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: Zip Co US Inc.
State: MI

Complaint narrative:
Subject : Final Demand for Account Adjustment and Refund Violation of Federal and State Consumer Laws To Whom It May Concern, This serves as a formal escalation related to ongoing account and billing issues stemming from transactions made via ZIP Pay.

Zip Pay has acted not in good faith, refusing to resolve billing disputes. My requested resolution has been met with dismissiveness, resistance, and inconsideration. 

Zip Pay responses misrepresents the facts and refuses to acknowledge the technological errors that created the problems. Furthermore, failure to address direct concerns, while continuing to send automated emails about freezing my account and reporting my account to collections, has only worsened the situation. 

Facts 1. Unauthorized Payment Caused by ZipPay System Error On XX/XX/year>, ZIPs platform processed a payment on an unintended card, after I attempted to update my payment method. Your system error led to this charge, and I contacted ZIP immediately to correct it. You acknowledged my attempt to update the payment method but refused to reverse the paymentdespite your internal failure being the cause.

2. Inappropriate Threats and Harassment Since this issue began, ZIP has sent me automated warnings via that my account is frozen or at risk of going to collectionseven while your team was actively reviewing my complaint. This harassment, in light of your negligence, is not only unprofessional but legally questionable. 

I have been a loyal customer for several years and have never previously defaulted on any payments. The only reason I fell behind is because your team failed to update my account in a timely manner and refused to reverse the consequences of your mistakes. 

After further reflection and review of all communications, we have found ZipPay to be in Violation of Consumer Protection Laws.

Zip Pays conduct constitutes violations of several federal and state consumer protection laws : 1. Fair Credit Billing Act ( FCBA ) Under 15 U.S. Code 1666, consumerd have the right to dispute billing errors and withhold payment on defective services without penalty while the creditor investigates. failed to properly investigate and resolve billing disputes in a timely manner, continuing to issue charges for services I could not use. 
XXXX  XXXX XXXX XXXX XXXX XXXX ( XXXX ) ( u ) It is unlawful to fail to promptly correct billing errors and to cause confusion or mislead consumers about their financial obligations or rights.

FTC Act Section 5 ZIPs refusal to resolve the issue, continued system errors, and lack of communication constitute deceptive and unfair practices likely to cause financial harm.

Dodd-Frank Act ( UDAAP ) Prohibits unfair, deceptive, or abusive acts. Your refusal to address billing errors, delays, and account restrictions falls under deceptive and abusive financial practices.

Electronic Fund Transfer Act ( EFTA ) Charging a card without my consent, and failing to correct this issue after notification, violates my right to authorize electronic payments and dispute errors. 
Michigan XXXX XXXX XXXX ( XXXX ) Your misrepresentation, failure to deliver services, and unfair billing practices violate my rights under state law.

Company response to consumer: Closed with explanation