Consumer complaint received 2025-01-23 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Trouble accessing funds in your mobile or digital wallet — 
Company: Credit Karma, LLC
State: CO

Complaint narrative:
Complaint for CFPB, XXXX, and Other Regulatory Agencies Subject : Urgent Complaint Regarding Mishandling of Credit Karma Money Account, Tax Refund Advance, and Restricted Access to Funds To Whom It May Concern, I am filing this formal complaint against Credit Karma Money and XXXX regarding their gross mishandling of my tax refund advance and the resulting financial and emotional hardship I have endured. Their actionsor lack thereofnot only demonstrate poor customer service but may also violate federal consumer protection laws. 



Background Details : XXXX. On XX/XX/XXXX, I filed my XXXX tax return through XXXX. I was approved for a {$1000.00} tax refund advance, which was contingent on opening a new Credit Karma Money account, as XXXX does not allow the advance to be deposited into an existing account. 

XXXX. On XX/XX/XXXX, the {$1000.00} advance was deposited into my new Credit Karma Money account. 

XXXX. I received an email from Credit Karma stating that my physical debit card would arrive within 1014 business days, but that I could access my funds immediately via a virtual debit card. but the app says this card has not been shipped, and the agent I last spoke to said I would receive an email confirming expedited shipping which has not happened, When I attempted to log in to access the virtual debit card, I discovered my account had been frozen without explanation. 



Difficult Process to Unfreeze My Account : Unfreezing my account was not easy and caused extreme stress. Over the course of several days, I : Repeatedly contacted Credit Karmas customer support phone line, but the system only routed me to an automated system with no option to speak with a live representative. 

Sent multiple emails to Credit Karmas support team, but their responses were generic and unhelpful, providing no clear explanation or resolution. 

Had to navigate through numerous email threads and chatbot interactions before finally reaching a live representative. 



When I finally connected with a live agent, they were able to unfreeze my account. However, this same agent then deactivated my virtual debit card, further restricting my access to the funds. I strongly believe this was an intentional act, as there was no reason provided for deactivating the card immediately after unfreezing the account. 



Current Issue : While my account is now unfrozen, I am still unable to access my {$1000.00} tax refund advance because the virtual debit card details are unavailable. Additionally, my federal and state tax refunds are set to be deposited into this account, raising concerns about whether I will have access to those funds when they arrive. 



Financial and Emotional Impact : The inability to access my funds has caused me severe financial hardship, including : XXXX. Utility disconnection risk : I have a utility bill due immediately to prevent disconnection. 

XXXX. Rent payment difficulties : My rent payment of {$2600.00} is at risk of being late, which could result in additional fees. 

XXXX. Professional license expiration : My real estate license expires on XX/XX/XXXX, and I can not afford the renewal fee without access to my funds, jeopardizing my career and livelihood. 



This has not only caused financial strain but has also led to emotional distress, as I have had to spend hours fighting for access to my own funds. 



Potential Violations of Federal Laws : 1. Truth in Lending Act ( TILA ) : Credit Karma and XXXX may have failed to adequately disclose the risks or barriers to accessing the tax refund advance, such as the freezing of accounts and deactivation of virtual debit cards. 

2. Electronic Fund Transfer Act ( EFTA ) : Withholding deposited funds and limiting access without clear justification violates federal requirements for timely access to electronic transfers. 

3. Unfair or Deceptive Acts or Practices ( UDAP ) : Freezing my account, followed by the deactivation of the virtual debit card, constitutes unfair and potentially deceptive practices. 

4. Fair Credit Reporting Act ( FCRA ) : If this issue is related to identity verification or credit-related concerns, I was not notified of the specific reason for the freeze, nor given an opportunity to resolve it in a timely manner. 



Resolution Sought : I respectfully request immediate action to : 1. Ensure I am provided with full access to my virtual debit card and funds.

2. Guarantee that the remaining funds from my federal and state tax refunds will be accessible without delay or additional barriers. 

XXXX. Investigate Credit Karma and XXXX for potential violations of TILA, EFTA, UDAP, and FCRA.

4. Hold Credit Karma and XXXX accountable for the financial and emotional hardship caused, including compensation for any resulting late fees or other damages. 



Conclusion : This situation has caused unnecessary financial stress and placed me at risk of losing basic services and my professional license. I trusted XXXX and Credit Karma with my finances, and their failure to provide transparent terms and proper customer support has left me in an untenable position. I urge the CFPB, XXXX, or any other appropriate regulatory body to intervene immediately and ensure these companies adhere to federal consumer protection laws. 



Thank you for your time and attention to this urgent matter. 



Sincerely, XXXX

Company response to consumer: Closed with explanation