Consumer complaint received 2025-02-24 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: FIFTH THIRD FINANCIAL CORPORATION
State: TN

Complaint narrative:
I am filing a formal complaint against Fifth Third Bank for an unjustified and potentially discriminatory credit limit reduction and against XXXX for the misclassification of my income. These actions have negatively impacted my creditworthiness and financial stability, and I request an official investigation into these matters. Furthermore, I am submitting additional details regarding my attempts to resolve the issue directly with Fifth Third Bank, which have only led to further concerns about their lack of transparency and potential unfair treatment of XXXX veterans. 

Complaint Against Fifth Third Bank On XX/XX/XXXX, Fifth Third Bank unilaterally reduced my credit limit from {$7500.00} to {$2900.00} despite my strong payment history, long-term banking relationship, and stable income. 

Background Information : Fifth Third Bank has been my primary financial institution, where I maintain multiple accounts, including a checking account, where my Veterans Affairs ( VA ) XXXX benefits are directly deposited each month. 
I have taken out four personal loans from Fifth Third Bank over the past four years, with two fully repaid before maturity and the remaining two in good standing.

I have actively used my Fifth Third Bank credit card since XX/XX/XXXX, with regular transactions and no missed payments. 
The account has never been dormant, is enrolled in automatic payments, and I frequently make additional payments between statements. 

Concerns Regarding Potential Discrimination : My primary source of income is VA XXXX benefits, which are permanent and total, guaranteed for life, and amount to {$4800.00} per month. 
I also receive {$1600.00} per month in child support and {$850.00} per month from my spouse for mortgage expenses, bringing my total monthly income to {$7300.00}. 
Fifth Third Bank is fully aware of these direct deposits, as they are made into my primary checking account. 
Despite this stable and verifiable income, my credit limit was drastically reduced, causing my credit score to drop from XXXX to XXXX ( XXXX XXXX XXXX ) and from XXXX to XXXX ( XXXX XXXX XXXX XXXX ). 
When I inquired about why my income could not be classified as XXXX Veteran or XXXX Person, bank employees stated that VA XXXX benefits default to retirement in their system due to a lack of an appropriate classification. 

In their letter dated XX/XX/XXXX, Fifth Third Bank stated : Our decision was based in whole or in part on information obtained in a report from the consumer reporting agency listed below. The consumer reporting agency played no part in our decision and can not provide specific reasons for our decision. 

This statement is contradictory and raises serious concerns : Fifth Third Bank can not claim the decision was based on my credit report while simultaneously stating that the credit bureau played no role in the decision. 
The bank previously approved two loans in the past year based on the same credit report data and continues to send me pre-approved loan offers. 
Rather than providing an opportunity to discuss concerns or remedy the situation, Fifth Third Bank immediately reduced my credit limit without warning, placing unnecessary financial strain on me. 

Complaint Against XXXX for Misclassification of Income Upon reviewing my XXXX credit report, I discovered that my employment status was incorrectly listed as Self-Employed, which is entirely false and requires immediate correction. 

Impact of Incorrect Employment Classification : I have never listed myself as self-employed on any loan or credit application. 
My sole income source is VA XXXX benefits, a permanent, tax-free pension I have received since XX/XX/XXXX. 
This misclassification may have influenced Fifth Third Banks decision, as it suggests financial instability that does not exist. 
I have already filed a dispute with XXXX requesting correction. 

Summary of Direct Contact with Fifth Third Bank On XX/XX/XXXXXXXX XXXX XXXX XXXX, I contacted Fifth Third Bank regarding this issue, and my experience raised further concerns about their transparency, accountability, and fairness.

1. Fifth Third Bank Refused to Provide Clear or Timely Explanations : Representatives refused to discuss the reasoning behind my credit limit reduction, stating only that I would receive a letter within 30 days. 
The original letter was dated XX/XX/XXXX, but I did not receive it until XX/XX/XXXX, XXXX XXXX delay that significantly hindered my ability to respond. 
Representatives transferred my call multiple times without identifying themselves or their roles. 

2. Fifth Third Bank Gave Contradictory and Inconsistent Justifications : A representative stated the bank relied solely on TransUnions credit report, contradicting their denial letter, which cites limited credit experience as the reason ; when this was mentioned to the second representative I spoke to, she adamantly denied any such language in the letter existed, even though I was reading directly from the physical copy sent from Fifth Third Bank.

I was told my payments were too low, despite making above-minimum payments and paying off two loans early. 
When I raised the issue of my misclassified income, the representative denied that my income played a role but then cited my debt-to-income ratio as a factordirectly contradicting themselves. She also refused to acknowledge my income being a fixed federal benefit, verifiable through their own bank records, which is not subjected to tax or fluctuation ; she repeatedly stated it was never a factor, only the " XXXX information gathered with the XXXX credit report '' which again was high contradictory. 
The second representative explicitly refused to review or reinstate my previous credit limit and stated that Fifth Third Bank reviews creditworthiness a few times a year and then decides to increase or decrease credit limits, indicating an automated process that does not provide a full investigation into the customers actual financial status. 
The representative also admitted that it was Fifth Third Banks own loansapproved less than six months ago from the date of the letter and final decision, XXXX XXXX contributed to my lack of creditworthiness, which feels like a predatory practice, as this was never disclosed during the loan approval process. It was also directly stated that they " can not, will not, and refuse to review their decisions in reducing my credit limit, and the decision was final '' Additionally, despite having already decided to lower my credit limit, Fifth Third Bank continued to send me additional pre-approved loan offers after the decision had been made, further raising concerns about deceptive lending practices.

Company response to consumer: Closed with explanation