Hello, I would like to know why you all are not working with Credit Karma to resolve the issue of them closing hundreds of accounts on 1/25/2024 for no reason.

[CatinaT1]

There was a bulk account closure on January 25th. They have since paused the bulk account closure process. 

Customers were notified ahead of time if their account was going to be closed, by email. They were closed if Credit Karma needed you to verify your banking information was accurate and you failed to do this by the deadline or if you had a negative balance and did not bring your account back into good standing prior to the deadline. 

If your account was closed either on the day you received the Refund Advance or right before you received it, then you will receive a check in the mail. 

If you have not filed yet, it's possible you can attempt to open a new account at Credit Karma then you should be able to apply for a Refund Advance. 

[EDMoore1993]

This is the excuse you all are stating - however, there are numerous threads on the internet currently where other people, like myself never got communication from Credit Karma that our accounts would be closed. I had just ordered a new debit card from them to my address a couple of weeks prior to filing my taxes.  Every ones account that got closed - were people who got the tax refund advance. So, the question everyone wants a answer to that you all seem to be avoiding is.... what happens once the IRS approves the refunds and sends the direct deposit to those Credit Karma accounts that were closed for no reason? 

[Emc41]

I never received an email saying my account was about to close so unfortunately in my case, what the expert is saying isn’t true.. Opened up a credit Karma spend account to get a refund advance which I didn’t qualify for…My account was frozen and then closed for  absolutely no reason. Customer service couldn’t tell me why this was happening nor could I contact the department responsible . 

[EDMoore1993]

Same. I attempted to correct the "expert" with no response. Every article/thread I have read regarding this issue, none of the customers received any information about their accounts being closed. We all legit logged into credit karma and the account was just gone. I find it very unprofessional from both companies that no one is taking responsibility. It is very clear per everything I have read that every one who got the refund advance once they filed had their account with Credit Karma closed on 1/25/2024. I still have yet to get a straight answer on what is going to happen to our money once the refund is approved by the IRS. Credit Karma reps have provided me with completely different answers each time. Some say that they will be mailing us a check 7-14 days after the refund is received, and other reps state they will be sending the money back to the IRS and the IRS will then issue a check and that that can take up to 10 weeks. I am 30 and I have been using TurboTax since I was 18. I have never had any issues with them until now and as a long term customer it is pretty disappointing that there is no real resolution or reason as to why all of our accounts were closed. Credit Karma also stated that because the auto system closed the accounts that they were unable to reopen them but I find that very hard to believe. I feel on both ends no one really seems to have any real answers nor does any rep I have spoke to seem to even care that this is a issue for thousands if not millions of people. 

[Silver-pen]

My account was closed the day after I received my advance. I was told to create a new account and they would transfer my funds into it. Didn’t happen. Then I was told by someone else that I would receive a paper check. A month later, nothing, expect me calling every other day and me constantly being told they will escalate my issue to their higher department (that I cannot speak to because apparently that higher department does not accept phone calls). Today I got a notification from my Credit Karma app that the remainder of my refund was deposited into the ‘closed’ account. After waiting on hold for an hour, I was told, yes, they had received the direct deposit into the ‘closed’ account and that I would receive a check for it. When I brought up that I had not received a check for the first amount, I was again told it would be escalated to this mysterious higher department that I again could not talk to.

[Kennadi33]

That's the thing, nobody was notified by email about accounts being closed. They keep saying they notified people by email, and that's there way of trying to cover their screw up. I went back through my emails up to 6 months in the past to try and find a notification about it and nothing. I was also told it was a system error. This should be illegal and credit karma should be sued for the financial problems and stress they have caused hundreds of people. And now my refund has somehow been deposited into a closed account. If the account is closed the refund should have been rejected, yet somehow all of these closed accounts that we can't access are being accessed by credit karma and able to have money deposited in them but not used by the people the money is actually for. This should be a crime and should be reported, and credit karma should be making this up to all customers who are affected. I sure hope turbo tax changes who they partner with for refunds next year otherwise they just lost 100s if not 1000s of customers due to credit karmas mistakes and dishonesty. This is messed up, it really is. No other banking institutions would close down bank accounts being actively used and with money in them like credit karma has. And they sure would not accept deposits into them when they are closed. This is starting to sound like theft. 

[Wisfam]

According to CK. They said banking regulations have to be followed and that everybody must verify their identity, I get CK is a prepaid and a prepaid bank, but not one bank I have ever dealt with prepaid or actual has ever said that is true, they never sent an email to my wife and all they can say is well open a new one and that it's to late to verify anything. No, we as customers have prove they never sent anything and the higher ups never ever are able to talk to anybody 

[GStephanie]

For the last couple of days I've been going through this as well, I did not file my taxes last year because I did not work, however I did not receive an email stating that my account was going to be closed. Furthermore, now that my account is closed, I am unable to open another account. According to them, it's because the system won't let me. That is the only answer they can get me. Very unimpressed and very dissatisfied.

[dezeray66]

1. they will not give me a reason why my account is closed and I cannot open another account and they have no reason so they say .. What's y'all's advice on what we should do???

[mr_daisy39]

Not to mention, I got my refund and had to pay to move it into my bank. So are we getting refunds for the money they made on withdrawals????

[MarilynG1]

If you choose the 5 Day Early option, you can get your refund up to 5 days early, into your own bank account.   

If you choose the Refund Advance Loan option, you need to have a Credit Karma account.

Here's more info on Difference Between Refund Advance and Refund Advance Loan.

Credit Karma has several ways to transfer your funds to another bank.  If you chose instant transfer, there is a fee for that. 

Here's a link to their site explaining that.  How can I withdraw funds from my Credit Karma Money Spend account?  

@mr_daisy39 

[cashelton]

I am writing to express my extreme dissatisfaction with the handling of my Credit Karma Money account and the ongoing difficulties I have experienced in accessing my funds.

As stated previously, I opened this account in connection with filing my taxes through TurboTax. Since my state tax refund was deposited, my account has been inexplicably marked for closure, and all funds have been frozen. This issue has persisted even after my federal refund was deposited.

I have made numerous attempts to resolve this matter through your customer service channels, but I have received inconsistent and unhelpful information. I am repeatedly told that I must wait 7-10 business days for my funds to be returned, yet this timeframe changes with each call. I have also been denied requests to speak with a manager or a department that can directly address my issue.

I formally requested that my funds be released and the account closed immediately on February 4th. It is unacceptable that I am still being told to wait with no resolution after 20 business days.

I believe that Credit Karma Money's actions in withholding my funds and refusing to provide a clear resolution are illegal and potentially fraudulent. I urge you to take immediate action to release my funds and close my account as requested.

I am deeply disappointed with the lack of customer service and transparency I have encountered. I will be taking further action if this matter is not resolved promptly.