Complaint Review: FirstUSA

On my July 1999 statement from FirstUSA I noticed a $12,000.00 balance transfer charged to my account. I had NOT requested nor authorized this balance transfer. I immediately called their customer service number and they said they would look into it. The representative said my monthly payment for the amount I was not disputing would be $350.00. I then wrote them a letter disputing the charge so I would preserve my rights.

On August 11, 1999 I received a letter from them confirming my inquiry and saying they were investigating the charge. They DID NOT reverse the $12,000.00 and charged me a late fee and over limit fee as well as interest on the entire balance. That was the last I heard from them until September 28, 1999 when I received a form letter asking me if I had forgotten to pay my bill because it was now past due (I continued to pay the $350.00 monthly as instructed.)

I then received a call from them asking me why I hadn't paid my minimum due which because of the $12,000.00 error was several thousand dollars. I explained to the representative my dispute and they said they would have someone look into it.

In March 2000, I got a call from someone in their collection department saying that it was a valid charge from a balance transfer to my First Card. I had my June 1999 First Card statement and it did NOT show any transfers in to the account. None of my statements from First Card since June 1999 showed a balance transfer. Since I didn't keep my statements from previous months I wrote to First USA (who had taken over First Card September 1999) and asked them to send copies of my 4/1999 and 5/1999 statements. I got a computer letter stating "The following months had a zero balance, therefore no statement (s) was generated.

In May of 2000 I got a call from First USA telling me again that my account was past due and I again explained the situation to the representative. She this time said she would look into it but in the meantime she would put me into an Assist Program because the interest rate they were charging was now above 25%. I told her to do whatever she felt was right but I still wanted proof that a balance transfer had been made.

In August of 2000 I got another very threatening phone call extremely early in the morning (before 6 am PDT) saying I owed First USA the $12,000.00 and that they had proof that I had requested and received a balance transfer. I told them to send me the proof knowing full well there was none since I HAD NOT requested nor authorized a balance transfer. The representative asked me if there would be someone at my billing address to accept a FED EX in the next few days. I insured him there would. No FED EX ever came.

I continued to send in the $350.00 and I continued to write disputing the charge and continued to get phone calls at all hours demanding payment.

Then in December 2001 I came across the FTC website and found out my rights so I sent another letter to First USA and cc it to the FTC.

On January 10, 2002 I received a letter stating that my account had been reviewed and that "a balance transfer was processed as you requested". It went on to say the balance transfer posted as a payment on my First Card on May 5, 1999 and the debit was applied to my First USA card on June 22, 1999. They included copies of statements (which I was told didn't exist in April 2000) showing a credit on May 5, 1999, almost TWO MONTHS BEFORE there was a debit.

I then sent a fax to the Office of the President demanding an explanation on what happened.

I received a letter dated January 28, 2002 from the Office of the President. First the letter apologized for taking so long in resolving my concerns. Then went on to say that ...On May 5, 1999 your First Card account received credit for $12,000.00. After careful review of your First Card account, we determined that the $12,000.00 payment WAS NOT YOUR PAYMENT, therefore we debited $12,000.00 from your First USA account on June 22, 1999. Our records indicate the first time you contacted our Customer Service Department was June 1999. The July 1999 statement inadvertently listed it as a balance transfer instead of a payment.

So first they make an error and credit $12,000.00 to one account for God knows what reason and then compounds that error by making an unauthorized charge against my First USA account without my knowledge or authorization. Then they take two and a half years to catch their mistake and notify me.

I am not sure where to turn at this point.