Consumer complaint received 2025-11-19 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: COLUMBIA BANKING SYSTEM, INC.
State: OR

Complaint narrative:
On XX/XX/year>, an unauthorized electronic funds transfer was made from my debit card by a merchant called XXXX / XXXX. I did not authorize this transaction. The merchant later refunded the money, but a merchant refund is not a Regulation E investigation, nor does it eliminate the banks legal obligations under 12 CFR 1005.11. 

On XX/XX/year>, I notified my bank that this was an unauthorized electronic funds transfer and requested a Regulation E investigation. My bank refused to open a Reg E claim, stating that because the merchant refunded the money, they can not investigate. They also claimed that Reg E is only for refunds, which is incorrect. A refund does NOT remove the banks obligation to determine whether the transaction was authorized or how my payment information was obtained. 

The bank never requested or obtained any of the required Regulation E authorization data from the merchant, including : consent/authorization screen timestamp IP address device or browser information tokenization logs enrollment or signup records Without this information, no Regulation E investigation was performed. 

My bank also stated that XXXX refused the investigation because the merchant refunded the transaction. This is legally incorrect. XXXX is not the regulated financial institution under Regulation E. The bank that holds my account is responsible for compliance and can not outsource its legal duties to XXXX. 

Additionally, my bank refused to provide me with a written notice stating that they were denying my request for a Regulation E investigation. They instructed me to mail a general PO Box if I wanted written confirmation, instead of documenting their refusal themselves. Regulation E requires the bank to take my claim upon oral or written notice ; they can not impose additional procedural barriers or refuse to document their denial. 

The banks employees and supervisors repeatedly stated : Their system can not open a Reg E claim because the transaction was refunded Reg E is only for cases where money is not refunded XXXX declined the investigation, so the bank can not proceed I must mail a PO Box to get a denial letter They will not put the denial in writing All of these statements misrepresent federal law. 

Regulation E ( 12 CFR 1005.11 ( b ) ( 1 ) ) requires the bank to investigate ANY unauthorized electronic fund transfer once I notify them, either orally or in writing. A merchant refund does not remove that obligation.

I am requesting the CFPBs assistance in compelling my bank to : 1. Open a proper Regulation E unauthorized transfer investigation 2. Request the merchants authorization and enrollment logs 3. Provide the federally required written investigation results 4. Correct their misrepresentations of federal law 5. Document their actions or refusals as required I simply want to know how my debit card information was obtained and used by a merchant without my authorization. My bank has refused to perform the legally required investigation and has refused to document their denial in writing. 

Date of complaint : XX/XX/year> XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation