Consumer complaint received 2024-08-16 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Closing an account — Funds not received from closed account
Company: FISERV FINXACT CORE
State: NY

Complaint narrative:
Dear Sir/Madam, I am writing to formally lodge a complaint against Clover, a merchant service provider, concerning the unjust freezing of our funds and the abrupt closure of our merchant account. 

We began our business, XXXX XXXX XXXX, on XX/XX/year>, offering IT consultancy services along with web development, software development, and web applications. We opened a business account with XXXX, through which we requested a Clover merchant account. All contracts were signed with XXXX, and they facilitated our Clover merchant account. 

After launching our business, we started processing payments through our Clover account ( XXXX : XXXX ). However, just one week later, we were contacted by Clovers Risk Management Department, which requested detailed information about our business and a few transaction verifications. We provided all the requested details and cooperated fully.

To our shock, only two weeks after starting our business, Clover abruptly stopped transferring daily settlements to our XXXX account without providing any reason or notification. Despite our repeated attempts to contact Clover via phone and email, we were eventually informed that our account had been closed by their Risk Management Department. They provided no specific reason for this closure, and they also froze {$18000.00} of our funds.

This situation has caused immense stress and financial hardship for us, as we were a new business operating on a tight budget. We had to halt our business operations, leaving us unable to pay our team members and other necessary expenses. Our business plan was completely disrupted, and we faced significant losses. 

Despite numerous attempts to resolve this matter with Clover, they have consistently refused to provide any further information or release the held funds. They initially promised to release the funds after 90 days, but after the period ended on XX/XX/year>, they informed us that the funds would remain held indefinitely without providing any reason. 

We also reached out to XXXX, with whom we signed the original contract and who provided the Clover merchant account services. However, XXXX directed us back to Clover, claiming they had no control over the funds. 

It has now been over eight months, and Clover has still not released our funds. This situation has caused severe financial damage to our small business, leading to its closure. We are under tremendous mental stress due to this unjust action, and we are urgently requesting your intervention to recover the {$18000.00} that Clover is holding.

I kindly ask the Consumer Financial Protection Bureau to investigate this matter and take the necessary action to ensure the release of our funds. We have already suffered significant losses, and the continued withholding of our funds is causing further distress. 

Thank you for your attention to this matter. We hope for a prompt resolution. 

Sincerely, XXXX XXXX XXXX XXXX XXXX.

Company response to consumer: Closed with explanation