Consumer complaint received 2025-07-14 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: Mercury Financial Intermediate LLC
State: TX

Complaint narrative:
I am writing to formally file a complaint against XXXX XXXX XXXX XXXX, managed by Mercury Card, regarding fraudulent charges, unauthorized account access, and violations of the Military Lending Act ( MLA ), Electronic Fund Transfer Act ( EFTA ), Fair Credit Reporting Act ( FCRA ), Truth in Lending Act ( TILA ), Fair Debt Collection Practices Act ( FDCPA ), and applicable Texas state laws. 

The CFPB has clear jurisdiction over this matter under 12 U.S.C. 5517 ( a ), which grants the CFPB authority to enforce federal consumer financial laws, including the MLA ( 10 U.S.C. 987 ), EFTA ( 15 U.S.C. 1693 et seq. ), FCRA ( 15 U.S.C. 1681 et seq. ), TILA ( 15 U.S.C. 1601 et seq. ), and FDCPA ( 15 U.S.C. 1692 et seq. ). Additionally, the CFPB has supervisory and enforcement authority over financial institutions like XXXXXXXX XXXX XXXX XXXXXXXX and service providers like Mercury Card. 

Background On XX/XX/2022, I opened a {$1500.00} credit card account with XXXXXXXX XXXX XXXX XXXX managed by Mercury Card. I made all scheduled payments on time. However, Mercury Card began adding fraudulent charges to my account. As an XXXX XXXX XXXX member and a covered borrower under the Military Lending Act ( 10 U.S.C. 987 ), I notified Mercury Card of my status and requested compliance with the MLAs protections, including the 36 % Military Annual Percentage Rate ( MAPR ) cap, prohibitions against fraudulent practices, unauthorized charges, and the use of a covered borrowers bank account as a security interest.

Violations of the Military Lending Act ( MLA ) The Military Lending Act ( 10 U.S.C. 987 ( e ) ( 3 ) ) explicitly states : A creditor may not use a check, access to a financial account, or other security interest to secure the credit or advance. 

Mercury Cards unauthorized access to my bank account and repeated attempts to extract funds illegally violate this provision of the MLA. Additionally, the MLA prohibits creditors from engaging in fraudulent practices or imposing unauthorized charges on covered borrowers.

The Military Lending Act ( 10 U.S.C. 987 ( e ) ( 5 ) ) further mandates : Any violation of the MLA voids the promissory note in its inception, and the creditor must make restitution for all payments made under the voided account.

As Mercury Card violated the MLA, the promissory note underlying the credit card agreement is void, and XXXXXXXX XXXX XXXX XXXXXXXX must make restitution for all payments made under the voided account. 

Violation of the 36 % MAPR Cap Mercury Card is reporting a charge-off amount of {$2200.00} on the {$1500.00} credit limit account. This amount is {$700.00} over the credit limit, clearly demonstrating that the Military Annual Percentage Rate ( MAPR ) cap of 36 % has been violated. The MAPR includes a combination of interest, fees, and charges imposed by the creditor. This over-limit amount constitutes a clear violation of the MLAs 36 % MAPR cap. 

Mercury Cards fraudulent charges far exceed the 36 % MAPR cap, constituting a clear violation of this statute. Despite my repeated attempts to resolve the issue, Mercury Card failed to adhere to the MLA. As a result, I filed an FTC fraud report due to the fraudulent charges. Despite this, Mercury Card continued adding fraudulent charges and subsequently gained unauthorized access to my bank account, conducting multiple transactions to extract funds illegally.

Violations of Federal Laws Electronic Fund Transfer Act ( EFTA ) ViolationsThe EFTA ( 15 U.S.C. 1693 et seq. ) states : A consumer may not be held liable for unauthorized electronic fund transfers if the financial institution is notified within 60 days of the transaction appearing on the statement.Mercury Cards repeated unauthorized withdrawals constitute multiple violations of the EFTA.

Fair Credit Reporting Act ( FCRA ) ViolationsThe FCRA ( 15 U.S.C. 1681 et seq. ) requires : Consumer reporting agencies and furnishers to adopt reasonable procedures to ensure the maximum possible accuracy of consumer credit information.Reporting fraudulent charges as a charge-off is both inaccurate and damaging to my credit profile, further violating the FCRA.

Truth in Lending Act ( TILA ) ViolationsThe TILA ( 15 U.S.C. 1601 et seq. ) mandates : Creditors must clearly and accurately disclose terms and costs of credit to consumers, including billing error resolution procedures.Mercury Card failed to comply with TILAs disclosure and billing error resolution requirements, further compounding their violations. 



Fair Debt Collection Practices Act ( FDCPA ) ViolationsThe FDCPA ( 15 U.S.C. 1692 et seq. ) prohibits : The use of unfair or unconscionable means to collect or attempt to collect any debt.Mercury Cards repeated attempts to extract funds through fraudulent and unauthorized means constitute clear violations of the FDCPA.

Violations Under Texas State Law In addition to federal violations, Mercury Cards actions violate Texas Finance Code 392.301 et seq., which prohibits deceptive trade practices and unfair billing practices. Specifically : Texas Finance Code 392.304 ( a ) ( 8 ) prohibits creditors from engaging in false, misleading, or deceptive acts in connection with consumer credit transactions.

Texas Finance Code 392.304 ( a ) ( 12 ) prohibits the use of unfair billing practices that result in unauthorized charges.

Furthermore, Texas Business and Commerce Code 17.46 ( b ) under the Texas Deceptive Trade Practices-Consumer Protection Act ( DTPA ) provides remedies for consumers subjected to fraudulent, deceptive, or unconscionable actions by creditors. Mercury Cards fraudulent charges and unauthorized account access clearly fall under these prohibited practices.

Company response to consumer: Closed with explanation