Consumer complaint received 2026-02-05 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: Credit Karma, LLC
State: MS

Complaint narrative:
CFPB COMPLAINT UNAUTHORIZED TRANSACTIONS, DISPUTE FAILURES, AND PROCEDURAL ERRORS Consumer : XXXX XXXX XXXX XXXX : Credit Karma Money ( XXXX XXXX XXXX XXXX  ) Product : Debit Card / Checking Account Total Disputed Amount : {$3400.00} ( {$350.00}, {$1800.00}, {$1300.00} pending ) QUICK KEY FACTS FOR CFPB REVIEWERS Disputes Dispute 1 {$350.00} Prudent Owl Unauthorized ; Denied {$350.00} Dispute XXXX {$1800.00} XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Unauthorized ; Partial credit {$560.00}, Denied {$450.00}, {$800.00} unaccounted Dispute 3 {$1300.00} pending Forge BT Unauthorized ; Pending full {$1300.00}; same merchant as approved transaction in Dispute 2 Key Facts IRS refund advance deposit ( {$4000.00} ) already received.

Remaining federal IRS refund portion is scheduled to be deposited to this account.

Louisiana state refund is scheduled to be deposited to this account.

42 unauthorized transactions occurred within 24 hours of the IRS refund advance deposit.

Unauthorized charges reported immediately while at school/work, including {$1300.00} pending transactions. 

XXXX XXXX failed to stop pending transactions, despite prior notice they were unauthorized. 

Partial credits inconsistent : XXXX XXXX approved {$560.00}, XXXX XXXX denied {$450.00} ; all from same XXXX XXXX platform. 

Risk-based account closure conflicts with final credit issuance of {$560.00} ; card replacement promised while account is being closed. 

Multiple representatives with limited English proficiency, creating barriers to resolution.

Evidence available : phone recordings, chat logs, screenshots, work logs, location verification.

Requested Actions Reverse and credit full {$3400.00}.

Provide written explanation of dispute handling and denials.

Confirm Regulation E compliance, including provisional credit.

Address failure to stop pending {$1300.00} transactions. 

Ensure all unauthorized transactions ( XXXX XXXX, XXXX XXXX, XXXX XXXX ) are credited. 
Provide clarity on handling of incoming IRS refunds ( remaining federal and Louisiana state ), account closure, and card replacement.

Legal Note Failure to comply with Regulation E would require full remediation, investigation documentation, and correction of procedural failures. Rights to further regulatory or legal recourse are reserved. 

DETAILED COMPLAINT Summary Unauthorized transactions posted within 24 hours of IRS refund advance deposit of {$4000.00} ( XX/XX/XXXX ). 

Remaining federal IRS refund portion and Louisiana state refund set to be deposited to this account. 

Reported all unauthorized charges, including {$1300.00} pending, within 24 hours under Regulation E. 

XXXX XXXX failed to stop pending transactions, despite assurances they would fall off. 

No verification, alerts, or fraud detection applied. 

Available balance {$93.00}, with {$1.00} transfer fee deducted during transfer to main bank account. 

XXXX XXXX has not appropriately credited my account, nor ensured Regulation E compliance. 

Card replacement was promised while the account is scheduled to close, creating discrepancies and risk to incoming IRS and state refunds. 


Background Long-time Credit Karma customer, over {$40000.00} historically deposited. 

Only prior dispute : {$32.00} on XX/XX/XXXX. 
Unauthorized activity occurred immediately after IRS refund deposit. 

Dispute Summary with Specific Amounts Dispute 1 {$350.00} Prudent Owl Unauthorized ; Denied {$350.00} Dispute 2 {$1800.00} XXXX XXXX/ Prudent Owl / FBO Starfish Unauthorized ; Partial credit {$560.00} ( XXXX XXXX ), Denied {$450.00} ( Prudent Owl ), {$800.00} unaccounted ( XXXX XXXX + Prudent Owl ) Dispute 3 {$1300.00} pending Forge BT Unauthorized ; Pending full {$1300.00}, same merchant as approved transaction in Dispute 2 Discovery of Fraud and Immediate Action Unauthorized activity discovered while attempting phone bill payment.

Called Credit Karma while at school/work to report : {$1300.00} pending transactions Other unauthorized posted transactions ( {$350.00} and {$1800.00} ) Informed that {$1300.00} would fall off, but it posted anyway.

Reported all unauthorized charges in Disputes 1 and 2.

Mishandling of Pending and Posted Transactions Failed to act on posted and pending unauthorized transactions.

No fraud alerts or temporary card restrictions applied.

42 abnormal transactions posted within 24 hours without detection. 

All disputed transactions ( XXXXXXXX XXXX XXXX XXXX XXXX XXXX ) came from the same XXXX ad/game download, indicating single point of compromise. 

Incoming IRS refund ( remaining portion ) and Louisiana state refund still scheduled for deposit, putting funds at risk due to account closure. 


Dispute Process Failures Conflicting statements : provisional credits approved, denied, promised post-account closure ( nonexistent XX/XX/XXXX cited ). 

Risk-based account closure conflicts with final credit ( {$560.00} ) issuance. 

Card replacement promised while account scheduled to close in 710 business days from XX/XX/XXXX. 

Written confirmation/documentation refused. 
Partial credits inconsistent : XXXX XXXX approved {$560.00}, XXXX XXXX denied {$450.00} ; same XXXX game platform. 

Improper Denial and Missing Funds Dispute 1 {$350.00} Prudent Owl Denied {$350.00} Dispute 2 {$1800.00} XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX credit {$560.00} ( XXXX XXXX ), Denied {$450.00} ( Prudent Owl ), {$800.00} unaccounted ( XXXX XXXX + Prudent Owl ) Dispute 3 {$1300.00} pending XXXX XXXX Pending {$1300.00}, same merchant as approved transactions in Dispute 2 Demonstrates : Contradictory treatment of same XXXX game across merchants Denial of clearly unauthorized funds, portions unaccounted Failure to stop pending transactions and failure to provisionally credit or reverse posted unauthorized transactions Failure to Provide Fraud Detection / Consumer Protection No alerts or detection for abnormal volume ( 42 transactions ).

Pending charges posted despite notification, violating Regulation E.

Barriers to Resolution Multiple customer service/dispute reps had limited English proficiency, impeding timely dispute resolution.

Delays in corrective action occurred.

Compromised Accounts / Identity Exposure Hacking / dark web exposure over 23 years.

Lockouts of financial accounts, email, social media ; password changes ; credential compromise. 

Legitimate ACH/debit withdrawal attempted, verified with XXXX XXXX, denied ; funds rerouted to XXXX. Shortly after, Prudent Owl unauthorized transactions occurred. 

All disputed transactions ( XXXX XXXX, Prudent Owl, XXXX XXXX ) came from same XXXX game platform, indicating third-party compromise. 

Account Information Errors Despite updating my account address, dispute decision correspondence and paperwork continue to show my old address, demonstrating a failure to maintain accurate account records and procedural oversight.

Requested Resolution Reverse and credit full {$3400.00}.

Provide explanation of dispute handling and denials.

Confirm Regulation E compliance, including provisional credit.

Address failure to stop pending {$1300.00} transactions. 

Ensure all unauthorized transactions credited ( XXXX XXXX, XXXX XXXX, XXXX XXXX ). 

Provide clarity on handling of incoming IRS refunds ( remaining federal portion and Louisiana XXXX ), account closure, and card replacement. 

Documentation available : phone recordings, chat logs, screenshots, work logs, location verification. 

Legal / Regulatory Context Regulation E ( 12 C.F.R. 1005.6 ) : Unauthorized electronic fund transfers reported within 24 hours limit liability to {$50.00}.

Banks must provisionally credit accounts promptly and stop unauthorized pending transactions once notified. 

XXXX XXXX failed to comply. 

Professional/ Legal Note If this were a client account, failure to comply with Regulation E would require full remediation, investigation documentation, and correction of procedural failures. Rights to pursue further regulatory or legal recourse are reserved.

Company response to consumer: Closed with monetary relief