Consumer complaint received 2024-12-26 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: CAPITAL ONE FINANCIAL CORPORATION
State: TX

Complaint narrative:
XX/XX/year> - XX/XX/year> : I was a victim of a pig butchering scam, where a third party scammer in the XXXX coerced me to 'invest ' money into a business, and other exploits, through XXXX XXXX I was then gaslighted and extorted further via a recovery scam to protect my already invested money ( for a total of {$60000.00} ). A full timeline of this scam ( XXXX XXXX XXXX XXXX XXXX XXXX  ), along with over 170 pieces of evidence ( numbered with corresponding IDs ), is included attached to this report. 

XXXX : I fully become aware I am being scammed, and immediately called XXXX to attempt a resolution, who in turn told me to contact Capital One, as they could only get my money back if approved by my bank. This is due to the fact that the scammer insisted I use the 'friends and family ' function. 

XX/XX/year> : I then filed a report with Capital One, opening a claim totaling the amount of money I lost to the scam ( {$60000.00} ). My claim was then filed incorrectly, as the agent placed it under the incorrect category. 

XX/XX/year>XXXX  : I began to search out legal counsel in both the US and XXXX with the possibility of helping this dispute. 

XX/XX/year>XXXX  : The second time my claim was refiled, it was split into two claims for some reason, and I had one of them ( {$6700.00} ) returned within two hours, which presumably notified the scammer as to my intent to get my money back - something I explicitly cautioned against multiple times, in fear the scammer might retaliate and delete online presences, running off with all my money. Capital One continued to mishandle my claim, refiling it continuously due to various errors on their end. That same day, it was refiled once again for the full amount of {$60000.00}. 

Multiple times over the phone, I was assured I was being scammed. An agent specifically told me that chat logs and contracts with the scammer would help towards the investigation, so I began to collect these pieces of information. 

XX/XX/year> : I went to a physical Capital One branch to send out a Written Statement of Unauthorized Debit, which Capital One later claimed they have never received ( despite me possessing physical confirmation of the fax receipt ) An agent told me there, at XXXX, to keep the {$6700.00} until I was able to settle the dispute for the full amount. No provisional credit was ever granted. 

XX/XX/year> : Not wanting to leave any more room for error, I sent a folder to the Capital One Investigation team containing over 170 pieces of evidence clearly proving I was a victim of a scam, including clear proof of the scammers falsified claims, fabricated government credentials, and many contracts that the scammer had consented to and had clearly broken. 

Capital One treated this case as if I had purchased a product or service, continuing to tell me that I should work with a vague merchant. Even when I explained the nature of the scam, Capital One consistently responded with this vague merchant line, even when talking to supervisors and explicitly telling them I was scammed and had purchased no product. 

XX/XX/year> : I updated the Capital One Investigations team with the fact the scammer continues to renege on all contractual duties and refuses to work towards a solution, instead sitting idle and doing nothing. Additionally, I offered a recap of every reason I believe I am a victim of a scam, which includes a total 33 suspicious actions the scammer consistently did over our communications, some of which ALONE would have constituted a scam. Evidently, this clear line of reasoning was ignored as my claim would soon be rejected for negligible reasons. 

XX/XX/year> : I was notified that my claim was denied, because the merchant ( I assume XXXX, in this case ) said I had authorized sending money to the scammer. The fact I had sent the money should be irrelevant, as this is literally how scams work ; all it proves was that I was a victim of the scam. This is something which I have explained to them many times, and the nonchalant response ( as well as the lack of any requests for further information ) proves Capital One did not even care to treat my claim seriously or review the evidence at all. 

XX/XX/year> : When I called with questions regarding my denial, Capital One said the claim was again filed incorrectly, that they were refiling it once more, and that I could continue to vaguely work with the merchant. I did not purchase anything from anyone, so I am unsure what merchant they are even referring to. And how am I intended to work with a scammer who has no intention of returning my money? 

Due to the mishandling of my claim, I was then accused over the phone of filing this claim 4-5 times, which is simply untrue. 

When asking about why my claim was denied, as it was established I had sent money to the scammer, I was simply told to fill out the provisional credit form once more, as if it was a fair replacement to a proper investigation. I was then told I was NOT scammed, and that my case was being refiled again. I was never notified of this refiling via email as per protocol, and needed to ask about the case twice to receive any useful information about it. A male supervisor who was quite standoffish also told me there was nothing Capital One could do about getting my money back at this moment, which is also untrue as they had already partially charged back the money I had lost. 

XX/XX/year> : I contacted CFPB and the State Attorney General over the phone, and was assured that scams like these should be classified as an unauthorized transaction. If this is indeed the case, why was my case rejected by Capital One, due to the fact it was 'authorized '? 

XX/XX/year> XXXX : At the advice of CFPB and other agencies, I contacted the XXXX Police Department and filed a police report regarding the incident. 

Throughout this process, Capital One failed to adhere to Regulation E guidelines : - Misclassification of Transactions : Ignored clear evidence and documentation, essentially citing my being a victim of a scam as the basis for denial. 
- Failure to Investigate Adequately : Relied on irrelevant evidence without reviewing submitted evidence of the scam, which more than proves I was a victim, which suggests a severe mishandling of the case. Aside from all the extortion and scams, the scammers clear breach of contract alone should result in restitution. 
- Improper Handling of Investigation : Mishandled and refiled the case multiple times with inconsistent results, while having no meaningful follow-up communication or investigation. Much of the given advice was contradictory, and I was not notified when my claim was refiled. 

Shifting responsibilities to work with a vague 'merchant ' is not appropriate, as the scammer has no intention to return any of my money. Capital One has the duty to protect the customer, and handle these claims in a prompt and thorough manner. 

As of XX/XX/year>, the scammer has still refused to return any money or deliver on any obligations, contractually bound or otherwise. I am being sent in circles by dispute resolution in spite of clear evidence, and Capital Ones repeated failures to follow proper procedure under Regulation E have left me financially burdened and without recourse. Additionally, Capital Ones actions have notified the scammer, now making it possible for the scammer to delete online presences and get away without consequences at any moment. Due to this unfairness, which has caused much financial injury and was not reasonably avoidable, I am filing this complaint under UDAAP.

Company response to consumer: Closed with explanation