Consumer complaint received 2025-05-05 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: TD BANK US HOLDING COMPANY
State: MD

Complaint narrative:
I am currently going through financial difficulties so I reached out to TD Bank back in XXXX XXXX to inquire about available programs that I may be elgible for. I was initially put on a temporary 3 month payment program where I was to pay {$390.00} per month and at the end of the program, I would be brought current and the original credit terms would resume. 

However, there was a miscommunication between myself and the TD representative when setting up the program. It was from my understanding that TD Bank would automatically withdraw the funds from my bank account. So, when the first payment became due which was on a Saturday XX/XX/XXXX and I did not see a payment deducted from my account on the next business day ( Monday, XX/XX/XXXX ), I immediately reached out to TD Bank the following day ( XX/XX/XXXX ) and inquired about why had the payment not been processed. It was then that the TD rep explained that I am required to submit payments every month under the program. After the rep explained this to me, I apologized, and she took the first payment over the phone. 

I asked the rep if me not submitting the payment on XX/XX/XXXX would affect me being on the 3 month program and she said no and that I was fine and I made the payment in enough time for it not to affect me in any negative way. 

However, on XX/XX/XXXX, I received a credit report notification indicating that my TD Bank credit card account had been closed. So, I reached out to TD Bank on XX/XX/XXXX and inquired if they had closed my account because this is something that I had no knowledge of and was currently on a 3 month repayment program. It was then that the rep confirmed that in fact the account had been closed ( re-aged ) because the initial payment was not submitted on XX/XX/XXXX. I explained to the rep regarding the misunderstanding on my end in terms of how the payment should be submitted and that one of their reps took the payment over the phone and indicated that I was still under the plan. 

So, in a nutshell, they took the {$390.00} first payment but still closed the account but did not inform me that they removed me from the program. The rep indicated that I was elgible for another program which was a 5 year forbearance program. The terms were that I pay {$170.00} per month, XXXX interest for 5 years. First payment was due on XX/XX/XXXX and the last payment would be on XX/XX/XXXX and that the payments would have to be called in and paid before XXXX each month. Since being set up on the forbearance plan, I have been calling and making phone payments on the XXXX of each month with a TD Bank representative before the XXXX deadline. 

On XX/XX/XXXX, I called TD Bank to make the normal scheduled payment and it was at that time that I was informed that the account would be charged off. I was totally shocked because I did not understand why the account was being charged off if I was making the required monthly payments each month while under the plan. So, I asked to speak with a supervisor. The supervisor explained to me that although the plan was set up for the XXXX of every month, the original due date of my credit card payment was on the XXXX of each month and there was a {$800.00} past due balance on the account from before I was put on the plan and that I would have to pay that off to prevent the account from being charged off. That pretty much defeats the entire purpose of the plan. The forbearance plan was supposed to allow me some sort of relief due to the financial difficulties that I am experiencing. 

I informed the supervisor that I was very mislead when I was put on the program and that none of that was explained to me and that they set up the plan with a due date of the XXXX of every month for {$170.00}. Nowhere during our discussion, regarding the program, did the rep mention anything about the account being charged off if the monthly payment was submitted on time every month. The only time that charge off was mentioned was when the rep explained to me that if I missed the monthly payment of {$170.00} for which I never did. In fact, each time I made a monthly payment with a TD Bank rep, they never mentioned that my account was going to be charged off. So, as of XX/XX/XXXX, I informed the rep that I would not be making another payment under the program if they were going to charge the account off anyway. I informed the supervisor that I would like to submit a complaint. I also informed her that I would be making a complaint to outside entities as well. I think this entire situation was handled very poorly by TD Bank. 

From my understanding, a credit card charge off occurs when a lender writes off a debt as uncollectible due to a prolonged period of non payment. How is this debt uncollectible if I was making payments on the account every month, on time, since being in the forbearance program? I have been making monthly payments since XX/XX/XXXX. I feel like the details surrounding this potential charge off is being misrepresented by TD Bank. TD Bank was recouping the money every month. This is not a case of them not being able to collect payments.

Company response to consumer: Closed with non-monetary relief