Consumer complaint received 2025-12-18 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CAPITAL ONE FINANCIAL CORPORATION
State: IL

Complaint narrative:
Capital One 360 Checking Account # XXXX Amount in Dispute : {$150.00} ( plus resulting overdraft fees/charges ) I. NATURE OF COMPLAINT On XXXX XXXX XXXX, Capital One debited my XXXX Checking account for ACH return reversals initiated by XXXXXXXX XXXX XXXX XXXX. These reversals are improper for XXXX independent reasons : XXXX. Timing Violation : At least XXXX reversal ( the XX/XX/XXXX deposit of {$10.00}, reversed XX/XX/XXXX ) falls outside the XXXX Extended Return deadline mandated by NACHA Subsection 3.13.1 . This return is approximately XXXX days after the original settlement datewell beyond the permissible window. 

2. WSUD Violation : I never claimed any of these transactions were unauthorized, and I never signed or provided a Written Statement of Unauthorized Debit ( " WSUD '' ) as mandatorily required under NACHA Subsection 3.12.4 for R10 Extended Returns. 

Capital One, as the Originating Depository Financial Institution ( " ODFI '' ), has the right and responsibility under NACHA Rules to reject returns that violate the Rules ' timing requirements and to dishonor returns unsupported by proper documentation. By accepting these improper returns, Capital One has caused my account to become overdrawn ( current balance : - {$140.00} ) through no fault of my own. 

XXXX. FACTUAL BACKGROUND A. The Authorized Transactions I maintain a XXXX XXXX XXXX account held at XXXXXXXX XXXX ( account ending in XXXX ). Using this account, I made the following authorized ACH transfers to my Capital One 360 Checking account : XX/XX/XXXX : {$10.00} ( posted XX/XX/XXXX ) XX/XX/XXXX : {$9.00} ( posted XX/XX/XXXX ) XX/XX/XXXX : {$140.00} ( posted XX/XX/XXXX ) These transactions were properly authorized by me, processed through the XXXX network, and credited to my Capital One account. I have no dispute regarding these transactions. 

B. The Improper Reversals On XXXX XXXX XXXX, Capital One debited my account for the following reversals : XX/XX/XXXX : {$10.00} reversal ( of XX/XX/XXXX deposit ) XX/XX/XXXX : {$140.00} reversal ( of XX/XX/XXXX deposit ) These reversals describe themselves as " Preauthorized Deposit from XXXXXXXX XXXX  XXXX XXXX checking account XXXX Reversal. '' The reversals have caused my account to become overdrawn with a current balance of - {$140.00}. 

XXXX The True Reason for XXXX XXXX Actions There is a separate Vanguard account that went into overdraft in early XX/XX/XXXX due to unrelated transactions. Rather than pursuing proper collection remedies for the overdraft in that separate account, XXXX is abusing the XXXX return system to claw back funds from Capital Onefunds that were properly transferred and credited months ago. 

I never advised XXXX or any other party that these transactions were unauthorized. I never signed any Written Statement of Unauthorized Debit. XXXX has fabricated or misrepresented the basis for these returns. 

III. NACHA RULE VIOLATIONS A. Timing Violation ( Subsection 3.13.1 ) The NACHA Operating Rules impose a strict XXXX deadline for Extended Return Entries. Subsection 3.13.1 states that an RDFI may transmit an Extended Return Entry only if : " the RDFI Transmits the Extended Return Entry to its XXXX Operator by its deposit deadline for the Extended Return Entry to be made available to the ODFI no later than the opening of business on the Banking Day following the sixtieth calendar day following the Settlement Date of the original Entry. '' Calculation for the XX/XX/XXXX Transaction : Original Settlement Date : XX/XX/XXXX XXXX Deadline : XX/XX/XXXX Actual Return Date : XXXX XXXX XXXX  Days Past Deadline : Approximately 35 days late ( XXXX days total ) This return is facially invalid under the NACHA Rules. Capital One, as ODFI, should have rejected this return outright based on timing alone. Instead, Capital One accepted the return and debited my account. 

XXXX XXXX 's Breach of Warranty ( Subsection 3.13.2 ) Under the XXXX NACHA Operating Rules, an RDFI transmitting an R10 Extended Return Entry makes a specific warranty to the ODFI. Subsection 3.13.2 states : " An RDFI that Transmits an Extended Return Entry warrants to each ODFI, XXXX XXXX, and Gateway that, prior to initiating the Extended Return Entry, the RDFI obtained a Written Statement of Unauthorized Debit from the Receiver that conforms to the requirements of Subsection 3.12.4 ... '' XXXX has warranted to Capital One that it possesses a WSUD signed by me for each of these transactions. This warranty is false. I never signed any such document. XXXX can not produce a WSUD because none exists.

C. The Mandatory WSUD Requirement ( Subsection 3.12.4 ) The NACHA Rules are explicit that the WSUD is mandatory, not optional. Subsection 3.12.4 requires : " A Written Statement of Unauthorized Debit must be signed or similarly authenticated by the Receiver ... '' The WSUD must include : Receiver 's printed name and signature Receiver 's account number The identity of the party debiting the account The date the entry was posted The dollar amount of the entry The reason for the return An assertion from the Receiver that the WSUD is true and correct An assertion that the Receiver is an authorized signer Without a conforming WSUD, there is no evidence linking these returns to any customer action. The R10 code is merely an administrative tool for inter-bank communication ; it has no probative value regarding whether a customer actually authorized a return.

IV. CAPITAL ONE 'S FAILURES AS ODFI A. Failure to Reject Time-Barred Return Capital One accepted a return ( the XX/XX/XXXX transaction ) that was facially invalid under NACHA timing rules. The return was transmitted approximately 35 days after the XXXX deadline expired. Capital One 's systems should have automatically rejected this return, or Capital One 's XXXX operations personnel should have identified and rejected this non-compliant return. Instead, Capital One debited my account. 

B. Failure to Exercise Dishonor Rights ( Subsection 2.13.6 ) Even for returns within the timing window, Capital One had the right to dishonor these Extended Return Entries. Under NACHA Subsection 2.13.6.1 ( b ), an ODFI may dishonor a return when the RDFI has not complied with the requirements of the NACHA Rulesincluding the mandatory WSUD requirement.

C. Failure to Demand the WSUD ( Subsection 3.12.6 ) Capital One has an absolute and unconditional right to demand the WSUD from XXXX. Subsection 3.12.6 states : " An RDFI Transmitting an Extended Return Entry ... must provide to an ODFI a copy of the Written Statement of Unauthorized Debit obtained from the Receiver ... within XXXX Banking Days after receiving a written request from the ODFI ... '' If XXXX fails to provide a conforming WSUD upon Capital One 's written request, XXXX will be in breach of its warranty under Subsection 3.13.2, and Capital One may pursue a Late Dishonor or NACHA arbitration.

D. Resulting Harm to Customer Capital One 's acceptance of these improper returns has caused my account to become overdrawn with a balance of - {$140.00}. I am now subject to potential overdraft fees, negative credit reporting, and the inability to use my accountall due to Capital One 's failure to enforce the NACHA Rules that protect consumers from exactly this type of abuse. 

V. RELIEF REQUESTED I respectfully request that Capital One : 1. Immediately reverse the {$10.00} debit related to the XX/XX/XXXX transaction, which was returned outside the XXXX Extended Return deadline in clear violation of NACHA Subsection 3.13.1 ; 2. Issue a written request to XXXXXXXX XXXX under Subsection 3.12.6 demanding production of the WSUDs purportedly supporting all returns ; 3. Exercise its right to Dishonor all returns for which XXXX can not produce conforming WSUDs ; 4. If XXXX fails to produce conforming WSUDs, pursue all available remedies under NACHA Rules including Late Dishonor and arbitration ; 5. Restore my account to positive standing and waive any overdraft fees or charges resulting from these improper returns ; 6. Ensure that I am not held liable for these reversed amounts as a result of XXXX 's improper conduct and Capital One 's failure to enforce NACHA Rules.

VI. URGENCY My account is currently overdrawn due to these improper reversals. I am at risk of additional overdraft fees, account closure, and negative credit reporting. The NACHA Rules provide Capital One with only 5 banking days to exercise a Timely Dishonor for returns within the timing window. Immediate action is required to prevent further harm and to preserve Capital One 's remedies under the NACHA Rules. 

Respectfully submitted, XXXX XXXX XXXXXXXX Date : XX/XX/XXXX Attachments : Screenshot of Capital One 360 Checking account showing - {$140.00} balance Screenshots of original deposits ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ) Screenshots of reversals ( XXXX XXXX XXXX ) Relevant excerpts from XXXX NACHA Operating Rules ( Subsections 3.12.4, 3.12.6, 3.13.1, 3.13.2 )

Company response to consumer: Closed with explanation