Consumer complaint received 2025-06-08 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: ROBINHOOD MARKETS INC.
State: OK

Complaint narrative:
XXXX XXXX XX/XX/XXXX To Whom It May Concern, I submitted a CFPB claim for fraudulent charges and the company provided a false response that they investigated the claim without providing any proof. I am confident that they failed to even file a chargeback or investigate the claim and believe I have sufficient evidence of their failure to comply with legal obligations. Therefore, since the case should be reopened due to their failure to investigate and provide details, I am resubmitting this formal complaint regarding Robinhood Credit Inc ( RCT ) s mishandling of unauthorized transactions on my credit account and what I believe to be subsequent retaliatory treatment. 

On XX/XX/XXXX, I submitted a dispute to Robinhood Credit Inc ( RCT ) regarding XXXX fraudulent transactions totaling {$5400.00} charged to my Robinhood Gold Credit Card account ending in XXXX. These transactions were made without my knowledge, authorization, or consent and occurred in foreign locations where I was not present and have never previously traveled to. The details are as follows : {$1100.00} XXXX XXXX XXXX : XX/XX/XXXX, at XXXX XXXX  Location : XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX, XXXX, XXXX XXXX  XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$1100.00} XXXX XXXX XXXX : XX/XX/XXXX, at XXXXXXXX XXXX Location : XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX, XXXX, XXXX Category XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX {$350.00} XXXX XXXX : XX/XX/XXXX, at XXXX XXXX  Location : XXXX, XXXX XXXX  : XXXX  XXXX Card XXXX XXXX XXXX XXXX XXXX XXXXXXXX {$55.00} XXXX XXXX XXXX XXXX : XX/XX/XXXX, at XXXX XXXX  Location : XXXX, XXXX Category : XXXX  XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXXXXXX {$2700.00} XXXX  XXXX  Date/Time : XX/XX/XXXX, XXXX Location : Unknown Category : XXXX XXXX XXXX XXXX XXXX XXXX  : XXXX XXXX XXXX XXXX XXXX I have no ties to these merchants or regions and received no goods or services from them. I acted promptly by reporting these as unauthorized merchant charges under the appropriate dispute resolution procedures provided by Robinhood Credit Inc.

However, Robinhood Credit Inc ( RCT ) denied my dispute via written communication ( Claim ID : XXXX ) after only XXXX exact business days, stating that they were unable to substantiate that the escalated transactions were fraudulent. According to their notice : Hello XXXX, Unfortunately, we were unable to substantiate that the escalated transactions were fraudulent. As a result of our investigation, you are held responsible for the charges in question. The following information was relied upon to come to this decision. 

Transaction history App activity Device data Delay between awareness of activity and reporting it unauthorized No attempted transactions after card was locked Suspicious account activity Please refer to the email you received from Robinhood titled Your Fraud Claim Has Been Denied for more information regarding your financial obligation. 

Best, The Robinhood Credit Team To address their vague reasons line by line : - There were no further attempted transactions after several were denied by the card issuer. Therefore, the card issuer, Robinhood Credit Inc ( RCT ), was suspicious of the charges. Once they began to be denied, the thief who was using it probably thought it had been turned off and discarded of the card information. 
- Device data will show I did not authorize any charges for these amounts by these merchants. 
- Device data shows I was in Oklahoma the entire time and never did I travel to any of the places where the charges were made. I never traveled to XXXX or XXXX. 
- One of the companies who placed a charge, XXXX XXXX XXXX, shows that it incorporated on XX/XX/XXXX, but it dissolved on XX/XX/XXXX. These charges were in XXXX meaning that a dissolved company placed a charge on my card. Despite the company being dissolved, Robinhood refuses to remove the charge or provide a detailed explanation of why they will not remove the fraudulent charge. 
- The delay between awareness and reporting it is due to the need to handle other matters that arise in life. I am assisting my father as he XXXX  XXXX XXXX  and only check my card statement periodically which is when I noticed the fraudulent charges. 
- The only suspicious activity was the foreign transactions that I did not make. 

A typical fraud claim takes 30 to 45 days to be investigated ; however, Robinhood Credit Inc ( RCT ) only spent 2 days on their investigation. A thorough investigation would have taken longer than two business days as evident by the industry standard of 30 to 45 days. I am confident that the charges are fraudulent, and that Robinhood Credit Inc ( RCT ) came to a false conclusion due to their lack of investigation. Therefore, upon receiving the denial, I promptly asked Robinhood Credit Inc ( RCT ) to clarify their vague reasoning by providing specific information on why the fraud claim was denied. However, instead of providing clarification, they provided circular explanation which did not help resolve any of the confusion. Specifically, they referred me to an email titled Your Fraud Claim Has Been Denied, which reads : Hello XXXX, Thank you for sharing your concerns and providing feedback. We appreciate your perspective and have carefully considered your points. However, after a thorough review, we stand by our decision regarding your dispute. 

We understand that this may not be the resolution you were hoping for, and we regret any inconvenience this may have caused. Our aim is to provide the best possible service, and we appreciate your understanding. 

With this in mind, we now consider this matter closed. If you have any further questions or concerns unrelated to this matter, please feel free to reach out, and we will do our best to assist you. 

Thank you for your understanding and cooperation. 

Best, The Robinhood Credit Team Clearly this is further vague language that does not help clarify the situation. Instead, Robinhood Credit Inc ( RCT ) provided circular definitions that further confused the situation. Despite this vague language, Robinhood Credit Inc ( RCT ) failed to provide any documentation, merchant evidence, or proof that I authorized the transactions. To my knowledge, no chargeback was ever initiated, and no effort was made to contact the merchants to verify the legitimacy of these purchases. This is a clear violation of Regulation Z under the Truth in Lending Act, which outlines a creditors obligations to fully investigate billing errors and resolve disputes fairly. 

Additionally, after receiving the denial, I reached out to Robinhood Credit Inc ( RCT ) to request that the dispute be reasserted. They did not address my concern of reasserting the claim and told me to refer to the email Your Fraud Claim Has Been Denied email that they had sent ; again, sending me in a circular path that did not clarify the situation. However, as shown above, the email was vague and did not provide any evidence to proof that I made the transactions. They even said they can not share investigation details which further indicates Robinhood Credit Inc ( RCT ) s unwillingness to engage in a meaningful resolution of the issue, reinforcing the lack of transparency and accountability in their dispute process. Following the denial of my claim, I experienced a sudden downgrade in service. My card was declined on numerous occasions despite the fact it was not locked. I reached out to support and they assured me it should work for in-store purchases despite the fact it was being denied saying : Thanks for letting us know and apologies for any confusion caused. Rest assured that your card is currently available for in-store use.

This issue only occurred only after I exercised my consumer rights, and this constitutes retaliatory behavior and potentially violates UDAAP standards ( Unfair, Deceptive, or Abusive Acts or Practices ). Furthermore, when I told Robinhood that I wanted my dispute reasserted because I disagreed with their findings due their failure to properly investigate ; they ignored my request to reassert the dispute, and instead threatened me by saying that they would report my disagreement with them to XXXX credit-bureaus which is further proof of retaliation. Their threat to report the disagreement to the credit bureaus has been attached to this letter in the appendix. This is not an isolated incident. Robinhood has faced previous scrutiny and regulatory enforcement actions, including a {$3.00} XXXX restitution order from FINRA, {$70.00} XXXX penalty, and class action lawsuits including a {$20.00} XXXX settlement. Additionally, there have been many CFPB cases filed against them including file number XXXX which mentions severe fraudulent activity on a consumer account that Robinhood was aware of but faults to take action to assist the consumer. Additionally, another complaint with file number XXXX indicates a client had to file multiple complaints to which Robinhood refused to resolve and that there is no phone support for Robinhood. These administrative proceedings indicate that Robinhood repeatedly fails to properly investigate claims forming a pattern of non-compliance. My experience appears consistent with a larger pattern of noncompliance, insufficient consumer protection, and mistreatment following valid disputes. This reinforces my belief that their actions towards medenying my rightful dispute, failing to investigate properly, and retaliating against meare part of a broader issue of discriminatory and unfair business practices that have affected not only me but potentially other customers as well. I respectfully request that the Consumer Financial Protection Bureau : Investigate Robinhoods handling of this dispute, including whether they followed Regulation Z procedures under the Truth in Lending Act ; Compel Robinhood to refund the full disputed amount of {$5400.00} ; Determine whether the declined in-person and online charges following the dispute constitutes retaliatory and discriminatory treatment in violation of consumer protection laws ; Examine Robinhoods broader practices in dispute resolution and customer service to prevent future harm to consumers. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation