Consumer complaint received 2023-12-21 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Charged fees or interest you didn't expect — 
Company: Affirm Holdings, Inc
State: CA

Complaint narrative:
XX/XX/2023 : I asked for and received a virtual XXXX from Affirm to spend at XXXX XXXX, in the amount of {$270.00}. 

XX/XX/2023 : At XXXX, Pacific time, I received an email from Affirm notifying me that my request for a virtual credit card to use at XXXX was approved for {$270.00}. Affirm also made note that even though the loan for XXXX was approved, it would not be confirmed until XXXX starts to process my order, which could take up to 21 days. The email from Affirm continued, Well email you as soon as your loan is confirmed, and at that point, your payment plan will start. 
LOAN ID : XXXX XX/XX/2023 : I placed Order # XXXX with XXXX for three pairs of sneakers. My order was confirmed as received and in process by XXXX via email at XXXX, Pacific time. ( Email attached ) XX/XX/2023 : At XXXX, Pacific time, I received a second email from XXXX . This email was an Update to the first email and was sent to inform me that my order had been CANCELLED. 

XX/XX/2023 : I called Affirm and updated the Rep. about my order being cancelled. I informed the Affirm Rep that I no longer required or desired a loan in any amount from Affirm and I asked the Rep to cancel my loan immediately. The Customer Service Rep told me that my loan was not yet processed. Also, if my order was cancelled by the merchant, I would have to speak with them, not Affirm. This did not make sense -- XXXX is the merchant, not the lender. The Affirm CSR reminded me : " Don't worry, the virtual card expires in 24-hours anyway if you don't use it. '' I re-stated I am NOT USING ANY FUNDS and I want this loan closed -- or noted. " Don't worry, the calls are recorded. '' XXXX was closed for the day, they are in an earlier time zone than California, so I had to wait until the next day to make sure XXXX releases any holds against the virtual XXXX issued by Affirm. 

XX/XX/2023 : XXXX, Pacific Time. I called XXXX. I attempted to explain to this young man that I had placed an order, the order was cancelled the same day supposedly due to out of stock issues. I told this XXXX Rep that it was important that, since XXXX cancelled my entire order, they need to release any hold on the virtual XXXX I used to pay for the order. I explained what a virtual credit card is, and that, while it pays the merchant immediately, it is actually a loan for which I am responsible. Therefore, since I am not going to be doing business with XXXX, and not using the Virtual XXXX  issued to me to use at their store, XXXX needs to return the money/ release the hold, immediately so that the card issuer, Affirm, will not come to me for repayment of a non-existent loan. I repeated this multiple times : yet the young man failed to comprehend. I asked that my call be escalated to a supervisor or Manager. 
After waiting on hold, a woman who said her name was XXXX came on the line. I repeated everything thus far. This individual was exceedingly rude, loud, disruptive, and extremely unprofessional. 
I have never encountered such behavior by a customer service representative at XXXX. She also failed to understand that the payment method used was not a " traditional, '' physical credit card, it was a virtual credit card. 
I explained that only XXXX had the virtual credit card number and was the only merchant where I was authorized to use it, Affirm provided the card number directly to XXXX electronically. XXXX merely repeated herself, louder and ruder each time : Youve got to call your bank, the one that issued the card. We have a live website. Stuff sells out all the time, okay? -- XXXX never understood I was calling about the payment process, not to complain about the cancelled order. I asked to escalate the call further. XXXX responded, Theres nobody higher than me in this building! XXXX hung up. 

XX/XX/2023 : I posted a public complaint on XXXX XXXX page, hoping someone would see it and get in touch with me about this issue. 

XX/XX/2023 : XXXX : I sent XXXX Customer Service an email relaying the sequence of events thus far. The email was sent to XXXX Customer Service via a link on XXXX website. 

XX/XX/2023 : XXXX : I received an email response from an individual named XXXX who works at XXXX . XXXX apologized for the issues with Order Number : XXXX, and advised that the pending authorization of {$260.00} should drop off [ my ] card in 2-10 business days. 
XXXX INCIDENT # XXXX XX/XX/2023 : I checked XXXX XXXX page to see if anyone had responded to my public complaint. An unknown poster named XXXX posted that they were truly sorry this happened, and asked me to send them a private message with my order number and email address I used for the purchase. -- NOTE : This website does not have messaging/messenger activated. 

XX/XX/2023 : I replied to XXXX XXXX message to me saying I would be happy to cooperate, however, XXXX is not active on their account. Did they have some other idea in mind? 


Please keep in mind that while all this correspondence was going on back and forth with XXXX and myself, I checked my Affirm account daily. It always showed, Approved, still in Process by XXXX. 

XX/XX/2023 : I had a long telephone conversation with a representative named XXXX in Affirms Customer Care telephone center. XXXX carefully listened to the sequence of events thus far. She told me she noted my account. XXXX then directed me to Send all this information in writing to the Customer Care Centers email address for investigation. Include invoices, cancel notices and emails. 
Affirm Call Center email : XXXX XXXX XXXX, CASE # XXXX XX/XX/2023 : XXXX : I sent a detailed email to Affirms Customer Care Department per XXXX instructions. I included attachments of my order acknowledgement, order cancellation, and first email to and from XXXX regarding the payment process and their need to return or release the money/hold ASAP. 

I continued to check my Affirm account daily to monitor the progress. 

XX/XX/2023 : I received an email from Affirm dated XX/XX/2023. In bold letters the email header said, Lets try that again I was shocked as I read the email : It looks like you tried to use a {$270.00} Affirm virtual card for purchases totaling {$460.00} at XXXX. There werent enough funds on the card to complete your most recent {$230.00} transaction. Some merchants require a buffer of a few dollars when you pay with a card, and this may be why your transaction didnt go through. 

We recommend requesting a new virtual card thats about {$5.00} more than your purchase amount, and then trying this transaction again. Well refund any extra money you dont spend. 

We also noticed that the merchant did successfully process {$230.00} in transactions. This may be to ship some of your items separately. After all transactions have cleared, we will refund any extra money you didnt spend on that card as well. 

If you have any questions, visit the Affirm Help Center at affirm.com/help. 

XX/XX/2023, XXXX : I contacted Affirms Help Center immediately. I spoke with a very professional man named XXXX. He seemed to listen carefully to this entire issue from beginning to present. 

XXXX pointed out two things right away : 1 ) Affirms virtual credit cards are only valid for 24 hours and, 2 ) The virtual credit card is only valid at the merchant for which it was issued. In my case, this was XXXX. 
XXXX put me on hold while he researched my account activity. 

XXXX came back on the line to say that unfortunately, it looks like someone got ahold of the virtual card number and used it as though they believed it was an actual credit card. XXXX gave me an accounting of the transactions. 

First of all, I see very clearly that you were given a virtual card in the amount of {$270.00}. as you requested, to use at XXXX. I see the previous agents notes, your email and attachments. I see that XXXX sent in a reversal of the hold against the card on XX/XX/2023, in the amount of {$260.00}. 

XXXX continued, Unfortunately, we received this reversal around XXXX, and we are not open then. Charges started coming in the morning of XX/XX/2023. 

XXXX then proceeded with giving me the list of transactions : TRANSACTIONS : XX/XX/23 : XXXX XXXX XXXX {$100.00} XX/XX/23 : XXXX XXXX XXXX {$120.00} XX/XX/23 : XXXX XXXX {$230.00} ( could be XXXX ) XX/XX/23 : XXXX  XXXX XXXX XXXX {$140.00}XX/XX/23 : XXXX XXXX XXXX XXXX  XXXX {$86.00} XX/XX/23 : XXXX XXXX XXXX XXXX {$15.00} XX/XX/23 : XXXX XXXX XXXX XXXX  {$9.00} XX/XX/23 : XXXX XXXX XXXX XXXX XXXX {$24.00} XX/XX/23 : XXXX XXXX XXXX XXXX {$7.00}XX/XX/23 : XXXX XXXX {$21.00} XX/XX/23 : XXXX XXXX XXXX XXXX {$15.00} XX/XX/23 : XXXX XXXX XXXX XXXX {$9.00} XX/XX/23 : XXXX {$0.00} XXXX told me that Affirm will investigate how this happened when the card should not have worked anywhere but XXXX. THE NEW CASE NUMBER IS : XXXX XX/XX/2023, XXXX : I received an email from Affirm informing me that XXXX has processed your order! -- An order that was CANCELLED BY XXXX on XX/XX/2023 I received a letter from a CyberSecurity agency notifying me that there had been a security breech at several stores -- XXXX being one of them, and that " my '' card ending in XXXX -- the numbers match the virtual card issued to me by Affirm, was one of those stolen/impacted. 

I sent this information to Affirm as further proof that I did not make any charges to the loan I have asked for WEEKS to be cancelled, clearly, by not following their own policies, the card number was pirated. 

No matter what proof I provided or how many times I object to Affirm, they are holding me responsible for charges that they allowed to be incurred. 

I refused to pay them, they do not belong to me. Now, Affirm has sent me to collections and my credit is being negatively impacted. 

I should add : I have SEVERAL loans with Affirm. Every single one of them are in 100 % perfect status. I am an outstanding customer. However, I will not pay for debt I did not incur. 
It is not fair that MY credit gets tarnished because this company did not follow its own rules nor did it cancel the loan the minute I asked -- effectively FORCING me into a loan I have said all along I did not want. 

I have provided Affirm with all supporting documents and I still have them should you need them. 

Thank you.

Company response to consumer: Closed with explanation