Consumer complaint received 2024-11-08 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: TD BANK US HOLDING COMPANY
State: NJ

Complaint narrative:
To : Consumer Financial Protection Bureau ( CFPB ) Subject : Follow-up on TD Banks Mishandling of Settled Debt and Incorrect Reporting by XXXX XXXX XXXX Background of Complaint : I am following up on my initial complaint regarding TD Banks failure to correctly apply settlement payments made on credit card account # XXXX, resulting in an erroneous balance transferred to XXXX XXXX XXXX. This error has negatively impacted my credit, and TD Bank has repeatedly deflected responsibility, instructing me to communicate solely with XXXX XXXX XXXX ( see attachment, page XXXX ), despite clear evidence that the error originated with TD Banks misapplication of my settlement payment. 
In XX/XX/XXXX, I submitted a formal complaint to XXXX XXXX XXXX. XXXX XXXX Capitals response, including documentation from TD Bank, confirmed that TD Bank incorrectly applied my final settlement payment as a regular payment instead of as the settlement completion. Despite this, XXXX XXXX XXXX continues collection efforts, including reporting the debt to credit bureaus, and they failed to provide a record of the first payment processed on XX/XX/XXXX, which was intended as the first settlement payment, a clear supporting evidence of my claim. 
Details of the Issue : On XX/XX/XXXX, at XXXXXXXX XXXX, I agreed to a settlement with TD Bank Debt Collection XXXX, XXXX ( ID : XXXX ), after receiving a charge-off warning letter ( see attachment, page XXXX ). The settlement terms required XXXX payments of {$1300.00} each, scheduled for XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. 
The first payment was processed successfully on XX/XX/XXXX. When the second payment wasnt debited, I contacted TD Bank. On XX/XX/XXXX, a TD Bank Collection Department representative, XXXX, corrected the issue by processing the remaining {$2600.00} to cover the second and third payments, and assured me this would satisfy the settlement with a " XXXX '' balance ( see attachment, pages XXXX ). However, TD Bank mistakenly applied this {$2600.00} as a regular payment, leaving a balance on the account. TD Bank did not notify me of this error. I became aware of the balance only when XXXX XXXX XXXX contacted me in XX/XX/XXXX, claiming I owed {$5000.00}. 
TD Banks Failure to Investigate and Respond Appropriately : Since XX/XX/XXXX, I have made multiple attempts to address this error with TD Bank, including sending a formal dispute letter to their XXXX, GA office, supported by proof of the settlement. TD Bank has responded with generic notices stating that the account was sold to XXXX XXXX XXXX, without addressing the original error. They have ignored documentation proving that their incorrect application of my settlement payment caused the balance discrepancy. During the XX/XX/XXXX call with TD Bank agent XXXX, I was informed that the conversation, including my payment, was recorded. I request that TD Bank review this recording as further evidence of their error. 
The Impact on My Credit and Financial Stability : The erroneous collection account has severely damaged my credit score, resulting in a denied rental application and risking my access to housing, loans, and other essential financial services.

Request for CFPB Intervention and Resolution : I respectfully request that the CFPB investigate this matter and ensure that TD Bank takes the following corrective actions : 1. Conduct a thorough review of my account history by listening to recorded calls from XX/XX/XXXX, at XXXX XXXX  ( with XXXX XXXX and XX/XX/XXXX ( with XXXX XXXX, to confirm the misapplication of my XX/XX/XXXX, settlement payment. 
XXXX. Confirm completion of the settlement, update the balance to reflect a " XXXX '' status as of XX/XX/XXXX, and ensure the account reflects this correction. 
XXXX. Notify all three credit bureaus ( XXXX, XXXX, and XXXX ) that the account was settled, and remove the charged-off remark. 
XXXX. Notify XXXX XXXX XXXX to remove the incorrect balance and related collection accounts from all three credit bureaus ( XXXX, XXXX, and XXXX ). 
XXXX. Request XXXX XXXX XXXX to send me an official letter confirming a " XXXX '' balance and an end to further collection attempts. 
XXXX. Rectify the impact on my credit score by correcting the misinformation and ensuring the settlement is accurately reported. 
Thank you for your attention to this matter. TD Banks refusal to properly investigate their error and XXXX XXXX Capitals ongoing collection efforts have forced me to seek the CFPBs assistance. I hope these actions will restore my financial stability and prevent similar issues from affecting others.

Company response to consumer: Closed with non-monetary relief