Consumer complaint received 2026-02-04 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: Credit Karma, LLC
State: PA

Complaint narrative:
I have maintained a credit karma spend account for several years without prior issues. In or around XX/XX/XXXX, my account experienced 31 fraudulent transactions in the amounts of 10, 20, 40, 60 and 80 dollars resulting in almost 1,400 dollars being unauthorized from XXXX PA. 

I promptly notified credit karma and submitted disputes for these transactions. Despite the fraudulent nature of the charges, my disputes were denied. I was informed that the disputes were denied solely because I stated that I still had possession of my physical debit card, even though the transactions were not authorized by me and had they did a thorough investigation, which they told me would take up to XXXX days, they would see that the account holder who deposited these funds onto the online casino merchant did not match the name on the card. They resolved my dispute within 24 hours which was clearly misinformation that was given to me. 

I had contacted credit karma by phone several times ; XX/XX/XXXX at XXXX when funds were noticed to be missing that morning ; XX/XX/XXXX at XXXX ; XX/XX/XXXX at XXXX ; XX/XX/XXXX at XXXX ; XX/XX/XXXX at XXXX ; XX/XX/XXXX at XXXX ; XX/XX/XXXX at XXXX ; XX/XX/XXXX at XXXX ; XX/XX/XXXX at XXXX ; and lastly XX/XX/XXXX at XXXX. 

After the original dispute denial, I contacted credit karma and emphasized the importance of receiving my funds back, they escalated the issue and submitted an appeal towards the original denial. I had received an email XX/XX/XXXX at XXXX XXXX  reading " We are writing regarding your inquiry related to the dispute on your above referenced account. On XX/XX/XXXX, we sent you a letter advising that after conducting a thorough investigation, we determined that no error occurred for the transactions in question. In addition, the following information was reviewed to make our determination- Based on our research and a review of your account activity during the disputed timeline, we have determined that no fraudulent activity occurred. Our records indicate that you authorized the charges, and the information used to authorize these charges matches information we have on file '' Which in this case would have been a false verification, because again the name used on the online casino merchant does not match my name on the card, so that was false information given from this business. 

Following the escalation and investigation, credit karma had frozen my account and informed me that it is scheduled for closure within XXXX days. When I contacted credit karma to request information regarding the freeze and closure, I was not provided any specific reason, supporting documentation, or evidence explaining their decision. 

As a result of the account freeze, my IRS tax refund that was previously scheduled to be deposited into this account is now at risk. Credit Karma has not provided written clarification regarding how incoming ACH deposits will be handled during the freeze or closure period, or whether rejected deposits will be returned to the sender. 

I believe credit karma failed to properly investigate reported fraud, relied on insufficient justification to deny my disputes, and restricted my account without transparency, placing federally protected funds at risk.

Company response to consumer: Closed with explanation