Consumer complaint received 2025-10-27 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: Credit Karma, LLC
State: WA

Complaint narrative:
I am filing this formal complaint against Credit Karma Money and XXXX XXXX, Member FDIC, for systematically denying me access to my own funds following identity theft, retaliatory account termination after I exercised my legal right to record a customer service call, and a pattern of conduct that has left me unable to pay for basic living expenses for nearly two weeks. 
The central issue in this complaint is Credit Karmas systematic denial of my access to roughly XXXXXXXX XXXX in legitimate funds that belong to me. Any legitimate investigation that I am confident the cfpb will put for will show that for nearly two weeks Credit Karma has held my money XXXX through a series of broken promises, arbitrary barriers, and now their ultimately retaliatory account termination will leave me in a completely unstable financial position that Credit Karma portrays as being a company that wants to empower customers from being in the exact same predicament that they have placed me in due to their retaliatory banking practices. Let it not be lost on the average consumer that Credit Karma has just been the subject of a class action lawsuit for their shady consumer trapping and violating practices. I am not clairvoyant by any means but I can predict with all absolute certainty that Credit Karma and XXXX XXXX  will again be faced with defending their consistent consumer law violating banking practices in a courtroom in the near future. As a victim of identity theft who lost his physical debit card to criminals, I desperately needed replacement card access to pay rent, buy food, and cover transportation costs. Credit Karma explicitly promised to provide this access, then manufactured absolutely no coherent reason to deny it, leaving me in continued severe financial distress and now subsequently closing my account when I started recording my conversations with their customer service agents. 

Timeline of Events : I filed police report number XXXX on XX/XX/year> regarding the theft of my bank card and mobile access to my account the result in roughly XXXXXXXX XXXX of unauthorized transactions. 
On XX/XX/year>, after regaining access to my phone, I discovered the unauthorized transactions and immediately contacted Credit Karmas fraud department. I successfully verified my identity using my government-issued identification and filed a fraud dispute. The Credit Karma representative explicitly promised to issue me a replacement virtual debit card after identity verification was complete so I could access my remaining funds while the fraud investigation proceeded. I acknowledge that Credit Karma appropriately issued provisional credit of {$2500.00} for the fraudulent transactions. 
Beginning XX/XX/year>, Credit Karma began arbitrarily rejecting the same government-issued identification that had been accepted less than XXXX XXXX  earlier. Credit Karma never provided any explanation for why my identification was suddenly unacceptable or what steps I could take to resolve this issue and hamstringing my ability to add pertinent information in the dispute claim process. More importantly, Credit Karma never issued the promised virtual debit card, leaving me with no means to access my account.

The promise of a replacement virtual debit card was not a minor courtesy but a critical necessity. My physical debit card had been stolen by criminals. Without any debit card, physical or virtual, I had no way to access my own money as Credit Karma froze my account in a manner that kept me from even transferring money out of my account. Credit Karma acknowledged this need by promising the virtual card. When they failed to deliver on that promise, they effectively froze my ability to participate in the economy while holding {$1900.00} of my money. 
From XX/XX/XXXX through XX/XX/year>, I made approximately XXXX to XXXX phone calls to Credit Karmas customer service line at ( XXXX ) XXXX attempting to obtain access to my funds. My phone records document these calls. Each and every call failed to result in the assistance I needed. During this period, Credit Karma customer service representatives hung up on me at least three to four separate times when I attempted to request explanations, seek supervisor escalation, or inquire about accessing my money. In these calls credit karmas representatives prematurely terminating the calls with a level of nonchalance that gave me great indication that this is common practice and not happenstance occurrence. 
On or about XX/XX/year>, after a week of being denied access to my money, Credit Karma finally allowed me access to {$750.00} from my account by way of instant transfers. According to Credit Karmas own terms and agreements, customers are permitted to make instant transfers of {$750.00} per day yet I was denied the luxury of being treated like the average customer. Despite this stated policy, I was only allowed to make this transfer during the entire eleven-day period, leaving me unable to access the remaining {$1900.00} in my account for basic living expenses. I was told that I would not be given proper access to my account while they were investigating the disputed charges however credit karma issued a letter sent to my home address notifying me that they concluded their investigation on the XXXX of XXXX however my account privileges remained in this frozen state. 
On XX/XX/year>, at XXXX XXXX, I spoke with a Credit Karma Money supervisor during a call that lasted XXXX minutes according to my phone records. The supervisors behavior during this call became increasingly unprofessional and hostile. Due to the unprofessional conduct and my need to document the continued mistreatment I was experiencing for any future litigation, I informed the supervisor that I had begun recording our conversation for my records. Oregon is a one-party consent state where recording telephone conversations to which one is a party is entirely legal and within my legal rights. However, this was enough to push an already unprofessional representative over the edge and at this point yet another phone call ended premature to my banking services being restored. On XX/XX/year>, just roughly XXXX XXXX  after the recorded call, I received an email from Credit Karma Money and XXXX XXXX  informing me that they were terminating my banking relationship clearly as retaliation. The email stated that they were unable to serve my financial needs at this time and no further explanation was given however apparently to a company that has the reputation that credit karma has this is apparently enough of a explanation for them. They further notified me that my account would be closed within XXXX to XXXX business days. As credit karma was aware I was already put in a desperate financial situation and credit karma wanted to exacerbate that situation to much further extent. The email further stated that my account and debit card had been locked, that no further withdrawal requests would be honored. 
Credit Karmas retaliatory account termination has created yet another barrier to accessing my own money. According to their termination email, I must now wait seven to ten business days after another 7-10 business days to receive my funds via a mailed check. This means that even though my funds are sitting in Credit Karmas possession right now, they are forcing me to wait additional days or weeks before I can access money that rightfully belongs to me. This additional delay compounds the financial hardship I have already suffered exponentially leading me into debt that would not occur had I not have been denied access to my finances for nearly two weeks.

Had Credit Karma simply issued the virtual debit card they promised on XX/XX/year>, I would have had immediate access to my funds throughout this period. Instead, their broken promise, arbitrary barriers, and retaliatory account closure have created a situation where I may go three to four weeks without being able to access my own money for rent, food, and other necessities.

Credit Karmas conduct demonstrates a clear pattern of creating and maintaining barriers to my accessing my own funds. First, they promised a virtual debit card and then arbitrarily rejected my identification without explanation. Second, they limited my instant transfers to a single {$750.00} transaction despite their terms stating I could make such transfers daily. Third, they had representatives hang up on me repeatedly when I sought help through the entire process. Fourth, they terminated my account in apparent retaliation for recording a call. At every turn, Credit Karma has found new ways to prevent me from accessing funds that belong to me.

The harm I have suffered goes beyond mere inconvenience. For nearly two weeks, I have been unable to access {$1900.00} in my own funds needed for basic survival. I have struggled to pay rent, buy groceries, purchase gasoline for transportation, and cover other essential expenses. And the financial distress caused by Credit Karmas denial of access to my own money that has been severe and ongoing is to be even more ongoing and even more severe. 
The emotional toll has been equally significant. As a victim of identity theft, I had already experienced trauma from being victimized by criminals. When I turned to my financial institution for help, I expected assistance and support. Instead, I received broken promises, arbitrary denials, representatives hanging up on me, and ultimately retaliatory account termination. I have been victimized twice : first by criminals who stole my property and funds, and second by my own financial institution that has denied me access to my remaining money. 
Credit Karmas actions have caused me to lose trust in financial institutions and have created anxiety about my ability to meet basic financial obligations. The stress of not being able to access my own money for weeks has affected my health, my relationships, and my ability to function normally in daily life.

The Relief I am Requesting : I request that your agency investigate Credit Karma Money and XXXX XXXX  for the systematic denial of access to my funds and the other conduct described in this complaint. I request that Credit Karma be ordered to immediately transfer my full account balance of {$1900.00} to another financial institution of my choosing via same-day electronic transfer rather than forcing me to wait an additional seven to ten business days. I request that Credit Karma be required to provide a detailed written explanation for why they promised to issue a virtual debit card and then failed to do so, and why they limited my instant transfers to a single occurrence despite their terms allowing daily transfers. I request that appropriate regulatory action and penalties be taken against Credit Karma for systematically denying a fraud victim access to his own funds. I request that Credit Karma be required to implement policies ensuring that fraud victims have reasonable access to their accounts and that promises made to such victims are honored. And finally I would like credit karma to provide me with the transcripts from my conversations with their representatives and any internal communications regarding my account for the purpose of potential future litigation. 
Supporting Documentation Available : I can provide police report number XXXX filed XX/XX/year>. I can provide complete phone call logs from my mobile device showing approximately XXXX to XXXX calls to ( XXXX ) XXXX between XX/XX/XXXX and XX/XX/year>, including the XX/XX/year> call at XXXX XXXX lasting XXXX minutes. I can provide screenshots from the Credit Karma Money application showing account frozen warnings and the current balance of {$1900.00}. I can provide the complete account termination email from Credit Karma Money and XXXX XXXX  dated XX/XX/year>. I can provide documentation showing that Credit Karma only allowed me to make one {$750.00} instant transfer despite terms allowing daily transfers. I can provide any other documentation requested to support this investigation. 
This matter requires urgent attention to be investigated as Credit Karma has committed Potential Violations of Banking Laws, Regulations, and Guidelines : The conduct described in this complaint may constitute violations of the following federal banking laws, regulations, guidelines, and supervisory expectations : Unfair, Deceptive, or Abusive Acts or Practices under the Consumer Financial Protection Act ( 12 U.S.C. 5531 and 12 CFR 1002.3 ). Credit Karma made a material misrepresentation by promising to issue a virtual debit card to provide account access and then failing to deliver on that promise without explanation. Credit Karma took unreasonable advantage of my status as an identity theft victim who had lost his physical debit card by denying the promised replacement access while holding my funds. Credit Karma caused substantial injury by denying me access to {$1900.00} in my own funds for nearly two weeks, with no countervailing benefit to consumers or competition justifying this injury.

Violation of the Duty of Good Faith and Fair Dealing under common law principles applicable to banking relationships. Banks owe customers a duty to deal with them in good faith, which includes honesty in fact and observance of reasonable commercial standards of fair dealing. Making explicit promises to provide account access to a fraud victim and then denying that access through manufactured barriers violates this fundamental duty. 

Retaliatory Actions Against Consumers Exercising Legal Rights. The termination of my account one day after I exercised my legal right to record a telephone conversation in a one-party consent state constitutes retaliation designed to punish me for attempting to document poor service. Such retaliation has a chilling effect on consumer rights and undermines the entire consumer protection framework.

Breach of Account Terms and Conditions. Credit Karmas limitation of instant transfers to a single {$750.00} transaction despite account terms stating customers may make such transfers daily constitutes a failure to honor the terms of the banking relationship and may constitute a breach of contract.

Failure to Provide Reasonable Customer Service Standards expected of FDIC-insured institutions. The pattern of representatives hanging up on me at least three to four times while I was seeking legitimate assistance regarding access to my own funds demonstrates systematic failures in customer service that fall below the standards expected of regulated financial institutions. 

Failure to Meet Safety and Soundness Standards under 12 U.S.C. 1831p-1 and 12 CFR Part 364. The pattern of conduct suggests potential failures in compliance management systems, internal controls, and operational policies, particularly regarding fair treatment of fraud victims and consistent application of access procedures. 

XXXX XXXX on XXXX in an XXXX Banking XXXX. Financial institutions should have risk-based authentication procedures that are consistent, reasonable, and explainable. 

Accepting identification for fraud dispute purposes while simultaneously denying the same identification for card issuance purposes without explanation suggests inconsistent and potentially unreasonable application of authentication standards. 

Customer Identification Program requirements under 31 CFR 1020.220. Customer identification programs should have reasonable procedures for verifying customer identity. The acceptance and subsequent rejection of identical identification without explanation raises questions about whether the procedures are reasonable or consistently applied.

FDIC Consumer Compliance Examination Manual expectations regarding fair treatment of consumers. The FDIC expects banks to have effective compliance management systems that ensure fair treatment of consumers, particularly vulnerable consumers such as fraud victims. The systematic denial of access to my funds suggests potential deficiencies in compliance management and consumer protection practices

Company response to consumer: Closed with monetary relief