Consumer complaint received 2024-12-17 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: CAPITAL ONE FINANCIAL CORPORATION
State: FL

Complaint narrative:
Subject : Dispute Over Negative Balance, Overdraft Handling, Delayed Transactions & Denied Compensation For Overdraft. 

Current Balance : - {$33.00} Dispute Reason : I am disputing the negative balance of {$33.00} on my XXXX XXXX  account. I am currently enrolled in the Auto Decline overdraft setting, which is supposed to decline transactions that can not be covered by the available balance. Therefore any transaction that can not be covered by the available balance should have been declined, not being authorized to clear. The overdraft policy by capital one explicitly states that transactions I can not cover will be declined. Despite this setting, my account was allowed to go negative, violating your overdraft policy. As per the overdraft settings, transactions should not have been authorized if there were insufficient funds. I was aware my account did have sufficient funds, capital one & merchant transaction delays played a role into pushing account negative with sufficient funds in account. 

Additional Concern : I had sufficient funds in my account, but delays in transaction processing by Capital One and the merchant pushed my account into a negative balance. When I brought this issue to your attention, I was unfairly denied compensation for this overdraft, which occurred due to Capital Ones failure to enforce the Auto Decline policy and its failure to process transactions promptly. This is unacceptable, as your policies clearly state that transactions will be declined to prevent such situations. 

Legal Basis for My Dispute : XXXX. Regulation XXXX ( Electronic Fund Transfers Act ) : Under Regulation XXXX, financial institutions must obtain consent before charging overdraft fees for debit card and ATM transactions. By allowing my account to go negative without adhering to my Auto Decline consent, Capital One willfully violated federal law. As a result, I may be entitled to statutory damages of up to {$1000.00} per violation. 

XXXX. Unfair or Deceptive Acts and Practices ( UDAP ) : Capital One misrepresented its overdraft policies. The overdraft fee was unauthorized or illegal. This situation also reflects a violation of consumer protection laws under UDAP. Allowing transactions to push my account negative, despite my Auto Decline settings, is an unfair and deceptive practice.

Supporting Details : 1. My account is actively enrolled in Auto Decline, as displayed in the overdraft settings.

2. My overdraft settings clearly state Auto Decline to prevent transactions I can not cover.

3. Auto Decline states that transactions exceeding my balance will not be authorized. 
XXXX. A negative balance of - {$33.00} occurred despite the above settings. 
XXXX. My request for compensation of XXXX was denied, even though the overdraft occurred due to a failure of your system to enforce the policy. 

Despite this setting, my account showed a negative balance that I the consumer had to replenish, taking my account out of a negative standing in order to utilize the debit card with Capital one. 

Thank you for your attention to this matter. I look forward to a resolution.

Company response to consumer: Closed with explanation