Varo Bank review: Complaint against varo money - mishandling my dispute violating regulation e 1

I am writing to file a formal complaint against Varo Money regarding their mishandling of my unauthorized transaction dispute and their violation of Regulation E (12 CFR § 1005). I am a customer of Varo Money with account number ending in XXXX.

On November 6-7, 2024, unauthorized transactions occurred on my account after my phone was stolen. I promptly reported my card as compromised to Varo Money on November 8, 2024, well within the two-business-day requirement under Regulation E. Upon discovering the unauthorized activity, I took immediate action by changing all my account passwords, ordering new cards, and filing a police report. I provided Varo with documentation of my actual location, which proved I was not in the location where these transactions occurred, and explained that my phone had been taken.

Despite taking all these precautionary measures and following Varo's prescribed procedures, my claim was wrongfully denied. Varo Money provided me with what appears to be a generic, templated response – one that I have found is commonly used in their denials, as evidenced by similar complaints on the Better Business Bureau (BBB) website. This standardized approach suggests a lack of the thorough investigation required by Regulation E.

Under Regulation E (12 CFR § 1005.6(b)), my liability for unauthorized electronic fund transfers should be limited to $50 if reported within two business days. Moreover, Varo's own policy promises zero liability in cases where the card is reported lost or stolen, which I did promptly. Their denial of my claim directly violates both federal regulation and their own stated policies.

Varo Money has failed to properly consider the substantial evidence I provided, including the location discrepancy between my actual location and where the transactions occurred, the police report I filed, the prompt reporting of my stolen phone, and the immediate security measures I took to protect my account. Their investigation appears to fall well short of the standards required by federal regulations.

I have already filed complaints with the Better Business Bureau, the Office of the Comptroller of the Currency, and the Federal Trade Commission. I am pursuing all available channels to resolve this issue and recover my funds. I have maintained detailed records of all communications and am prepared to provide any additional documentation required to support my case.

I am requesting the following resolution:
1. Full reimbursement of all unauthorized transactions
2. A detailed, written explanation of their investigation methods
3. Acknowledgment and correction of their Regulation E violations
4. A review and reform of their dispute resolution practices

Under Regulation E, Varo Money is required to investigate and resolve this dispute within 10 business days (or up to 45 days if they provide provisional credit). Furthermore, I am formally requesting copies of all documents, records, and evidence used in determining the outcome of my dispute. This includes, but is not limited to, investigation notes, transaction logs, location data, and any third-party information that was considered in denying my claim. Under Regulation E, I am entitled to documentation explaining the results of your investigation.

If this matter cannot be resolved satisfactorily, I am fully prepared to pursue arbitration as outlined in Varo Money's account agreement. However, I trust that with proper regulatory oversight, we can resolve this matter without requiring arbitration proceedings.

I request your immediate attention to this matter and expect a thorough investigation of these Regulation E violations.