ComplaintsforLeader Bank

• Initial Complaint

  07/11/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  On July 5, 2022 I noticed three different withdrawals from my checking account from Venmo to a person I have no idea who he is. I contacted my bank and Venmo. Here was a stop payment made and a hold on my debit card. Because, my debit card is also a **** card, these transactions were again made on July 8, 2022. My account is now in arrears and the bank wont refund the amount it is in arrears. This is not my issue. Its a bank security issue. There was a hold placed on the account. Therefore, the card was not supposed to be used in any way shape or form. Wether it be debit or charge. There should have been no way the bank should have allowed these transactions to go through again.

  

  Business response

  07/22/2022

  RE:      Better Business Bureau Complaint No. ********
  
  Dear Sir/Madam: ********* write on behalf of Leader Bank, N.A. with respect to Complaint No. ******** (Complaint), as received from the Better Business Bureau (BBB) as submitted to the BBB by ***************** on July 11,2022.  The BBB then sent the Complaint to Leader Bank on July 12, 2022, and the Complaint was received on July 20, 2022.   We have immediately researched the concerns raised by ************** with respect to certain fraudulent charges made by Venmo to her checking account.  We pride ourselves on offering superior service to all customers and are disappointed that ************** was not satisfied by his experience.  Nevertheless, following our review of Ms. ****** claims, we have determined that the Bank acted properly with respect to her account and the Venmo charges, and ************** has been refunded all amounts owed to her for these fraudulent charges.  As such, no further moneys are owed or due to **************.

  
  To provide additional context regarding Ms. ****** claims, we can provide the following information.  ************** has until recently maintained a checking account and savings accounts in her own name at Leader Bank.  On or about July 6, 2022,************** contacted Leader Bank regarding three pending debits on her checking account made by Venmo which she claimed she did not authorize or approve.  Leader Bank immediately researched the matter and determined that Venmo had attempted these deductions as ACH transactions using Ms. ****** full checking account number.  As a result, ********************** was able to place a stop payment on these transactions and prevent the deductions.  During this process, Leader Banks representative discussed the transactions with ************** and specifically recommended that ************** cancel her existing Venmo account and shut down any further access as soon as possible.  It appears that despite these recommendations, ************** did not do so. ************** also did not request that a hold or freeze be placed on her debit card, and because the Venmo transactions were done as ACH transactions and not debit card transactions, Leader Bank had no reason to freeze or hold Ms. ****** debit card.

  
  Unfortunately, for reasons not known to the Bank, Venmo attempted three additional unauthorized withdrawal requests totaling $905.12, this time using Ms. ****** Leader Bank debit card that was linked to her Venmo account rather than as an ACH.  Because the method of deduction used was different than the previous fraudulent attempts, these withdrawals evaded the earlier stop payment imposed by the Bank and these funds were withdrawn from her Leader Bank checking account on July 11, 2022.  ************** was understandably upset by the fraudsters use of her Venmo account, but contrary to the implications made in her Complaint, Leader Bank did not in any way refuse to make her whole for these fraudulent transactions.  Indeed,************** filed this Complaint on the day the fraudulent transactions posted to her checking account (July 11, 2022) before Leader Bank could even have the opportunity to replace the funds in her account.  In fact, Leader Bank credited Ms. ****** checking account with the full amount of the authorized transactions - $905.12 three days later on July 14, 2022, prior to Leader Bank receiving notice of this Complaint.  Notably, this was well prior to the requirement in Regulation E, which would govern Ms. ****** claims, that Leader Bank credit her account for the fraudulent transactions within ten business days of receiving notice of the fraud.   Thus,since Leader Bank has fully made ************** fully whole for these wrongful transactions and thus the concerns in her Complaint should now be fully resolved.
  

  As Leader Bank acted in a good faith manner and refunded ************** for the three fraudulent transactions at issue, Leader Bank believes that it acted appropriately with respect to the claims made in the Complaint and thus no further action is required.   Although not mentioned in the Complaint itself, Leader Bank understands that ************** claims that the Bank should also refund her for certain funds she moved from her Leader Bank savings account to her Leader Bank checking account to address an overdraw balance caused by the fraudulent Venmo transactions.  However, the transfer made was not done at the request of Leader Bank or the fraudster and was not an unauthorized transfer.  By moving funds from her savings to her checking account, ************** still had fully access to those funds, and when Leader Bank credited her checking account for the fraudulent transactions, ************* was made whole.  As such, no further payment is warranted or required at this time. 
  

  With this response,Leader Bank believes it has fully responded to the Complaint and no further action is needed.  We understand that ************* has chosen to voluntarily close her checking and savings accounts at Leader Bank, and we wish her the best of luck in the future.  If there is any additional information that the Bank can provide to resolve this matter, please do not hesitate to contact Leader Bank's General Counsel, *******************, at ******************************.  A copy of this response has also been sent directly to ************** by US Mail today.

• Initial Complaint

  07/19/2021

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  In April 2021, I filled out an application for a second round *** loan from ************** which is a partner of Leader Bank. My applications were approved and accepted by Leader Bank. My loan received an SBA loan number from the **** I received emails about every 20 days saying my loan was being processed and that I was awaiting paperwork to be signed to close the loan. On the first of July 2021, the bank requested bank statements from me and I completed the request right away. I was told as of last week that my loan was in process and everything was fine. I was told I need to be patient that Leader Bank was backed up with the *** request. Today I found out that they canceled my loan and said they had incomplete applications, even though I have emails that say I was approved and the applications were complete. What is even more distributing is that my information was sold to third parties, because I have vendors calling me for business loans with the same info I provided Leader

  

  Business response

  08/02/2021

  I write on behalf ofLeader Bank, N.A. with respect to Complaint No. ******** (Complaint), as received from theBetter Business Bureau (BBB) on or about July 20, 2021 with respect to BrianHall, who had applied for a Paycheck Protection Program (PPP) loan as guaranteedby the ***************************** (***).  We understand that ************ had expressed concerns both about the delaysin his PPP loan funding as well as concerns that his personal information providedin connection with his PPP loan application had been sold to a thirdparty.  We pride ourselves on offeringsuperior service to all customers and appreciate the opportunity to respond to********* concerns.

  
  With respect to thefunding of his PPP loan, Leader Bank had engaged with ************ prior to ourreceipt of the Complaint regarding his funding.  Due to the volume of PPP applications received and concerns of potentialfraud or unauthenticated applicants, Leader Bank and its financial technology vendorhad ensured that all potential borrowers had undergone a thorough fraud andidentification review process. However, due to the deadlines imposed by the ***for funding of PPP loans following application, ********* application couldnot be validated by that deadline and so initially had been marked for cancellation.  After that, however, Leader Bank was able towork with ************ to resolve all outstanding issues, and ********* PPP loanwas funded following our receipt of the Complaint.  As the loan has been funded, no furtheraction by Leader Bank should be necessary at this time.

  
  With respect to *********concerns regarding the sale of his personal information, we can confirm thatneither Leader Bank nor our financial technology vendor as disclosed or sold********* information to any third party for marketing or sales purposes.  We understand that ************ has received salescalls from vendors and business lenders since applying for his PPP loan, butsuch calls were not due to any action taken by Leader Bank or our vendor.  Rather, due to the publicly availabledatabase maintained by the *** for PPP loan applications, it appears that Mr.Halls information was obtained by these third parties through that public disclosure.  Unfortunately, Leader Bank cannot controlthat public disclosure of information and so cannot assist ************ further asto his concerns, but we can confirm that we did not and will not sell or hispersonal information to third parties for their marketing purposes.

  
  Leader Bank believes thatthis response together fully addresses the Complaint and that no further actionis necessary.  If there is any additionalinformation that the Bank can provide to resolve this matter, please do nothesitate to contact me at ************.

• Initial Complaint

  07/18/2021

  Complaint Type:

  Order Issues

  Status:

  Answered

  More info

  Leader Bank is a flat-out joke!My second round PPP loan was being handled by this garbage banking institution. The loan was approved, all promissory documents signed and was in the final funding phase which dragged on for 6 weeks, then, received a denial.Their reasoning, which is complete horses s*it, APPLICATION NOT APPROVED DUE TO INDICATIONS OF INELIGIBILTY. My first round PPP loan WAS APPROVED AND FUNDED with a more reputable financial institution, with in three days, with the EXACT documents that were submitted to these inept morons. Leader Bank dropped the ball, never communicated their indications of ineligibility with meno call, no email to resolve this issue?, nothing! These funds were approved by the *** and this so-called bank dropped the ball, costing me $14,620!!! Im beyond furious with the unprofessionalism, lackadaisical attitude and quite frankly unethical way of conducting business. I now have no other option but to close shop, all due to ************

  

  Business response

  08/06/2021

  Dear ******************** write on behalf ofLeader Bank, N.A. with respect to Complaint No. ******** (Complaint), as received from theBetter Business Bureau (BBB) originally filed on July 18, 2021 by ChrisBabiana.  We apologize for the delay inresponse, as it appears that Leader Bank did not receive the first electronicnotice of the Complaint sent on July 19, 2021 and did not receive notice of theComplaint until August 5, 2021.  Upon receivingthe notice, Leader Bank immediately researched the concerns raised by ***************** with respect to his application for a Paycheck Protection Program(***) loan as guaranteed by the ***************************** (***).  We pride ourselves on offering superiorservice to all customers and are disappointed that ****************** was notsatisfied by his experience.  Nevertheless,following our review of ************ claims, we have determined that the Bankacted properly in denying his request for a *** loan due to lack of eligibilityunder *** rules for this program, and affirm that the Bank acted professionallyand ethically with respect to ************ application.

  To explain the ultimatedecision not to proceed with ************ *** loan request, we can provide thefollowing information.  ****************** for a second round *** loan in 2021 through ********, a financetechnology service provider who partnered with Leader Bank to accept andprocess *** loan applications at the end of the *** program in 2021.  ****************** applied for the loan in his ownname and provided certain tax forms to document his income.  ******** was able to obtain a guarantee fromthe *** for a certain *** loan amount, but the obtaining of this guarantee onlyensured the reservation of funds in the *** program and did not indicate thatMr. Babiana had fully demonstrated his eligibility for a *** loan application. Dueto the volume of *** applications received in the final months of the program andconcerns of potential fraud or unauthenticated applicants, Leader Bank and itsfinancial technology vendor had ensured that all potential borrowers hadundergone a thorough fraud and identification review process.  This process was necessary to ensure that loanfunds fully guaranteed and earmarked for forgiveness by the federal governmentsatisfied all *** requirements for this program, which was a particular concernof the *** following reports of significant fraud in the initial 2020 rolloutof the program at other institutions.
  As part of this review,Leader Bank and its financial technology partner determined that the taxreturns provided by ****************** in support of his request for a *** loan as asole proprietor instead indicated that his business income came from a separate*** named 508 Productions *** rather than a sole proprietorship.  This *** had a separate tax identification numberand thus was not a disregarded entity for ******************.  As a result, because the income claimed for purposesof a *** loan came from another entity, Leader Bank understood that ************** not personally eligible for a *** loan in his own name as a sole proprietor. 
  

  To help ****************** inhis request for funding, however, the Bank then turned to whether they could transferthe loan guarantee to the *** if ****************** was an owner in whole or in partof that entity. Leader Bank was able to confirm that ****************** did register508 Productions *** as a ************* limited liability corporation and wasthe sole officer of that entity in 2014.  However, a further review of state records revealed that *************** had subsequently been dissolved by the ************* Secretary of theCommonwealth in 2017 for failure to maintain annual reports and filings.  Moreover, another individual subsequentlyformed and registered an entity called ********************** 2019 followingthe dissolution of the original ***, indicating that ****************** was notproperly associated with this newly formed entity as an officer (and thus noteligible to apply for a loan on its behalf).  A copy of the records of the Secretary of the Commonwealth showing that ********************** *** was dissolved in 2017 and showing the newly created *** by a different party in 2019 are attached to this response for convenience.  A *** that has not maintained a status of good standing with the stateof its incorporation is not eligible for a *** loan, and ****************** could notcure the deficiencies for his version of 508 Productions *** with the Commonwealthdue to the presence of an *** with an identical name in *************.  As a result Leader Bank could not transferthe guarantee to keep ************ request alive.  

  Thus, the Bank had no option but to deny ************ *** loan request for indications of ineligher, ****************** could not cure the deficiencies for his version of508 Productions *** with the Commonwealth due to the presence of an *** ibilityas ****************** was not eligible to receive *** funding based on the taxdocuments provided in his own name as a sole proprietor and the alleged sourceof income no longer was an entity of good standing in *************.  We cannot speak to why the lender ***************** with for an earlier *** loan request moved forward with that loan, as weare not party to the documents provided to that lender nor the review conductedas part of the *** request, but Leader Bank has a responsibility to originateloans under the *** program in compliance with *** guidelines, and ************request did not meet those standards.   Accordingly, the Bank acted properly in decliningto proceed with this *** loan. 

  We understand ************frustration with the decision, but had the loan proceeded as requested, the ***would have grounds to refuse to forgive his loan due to this ineligibility, andMr. Babiana would have been required to repay any funds provided in full in additionto applicable interest as required under the terms of the *** program.  Leader Bank believes that this response fullyaddresses the Complaint and that no further action is necessary.  If there is any additional information thatthe Bank can provide to resolve this matter, please do not hesitate to contactme at ******************************.

  Very truly yours,
  
  *******************
  General Counsel& SVP of Compliance
  Leader Bank, N.A.

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩