Warren presses Bilt on payment disruptions during bank shift

Some consumers could not make payments on balances held at Wells Fargo or had balances transferred to new cards without authorization. Scrutiny increased as Bilt moved away from Wells Fargo, where a partnership that began issuing Bilt cards in 2022 was expected to run through 2029. Reports alleged Wells Fargo lost up to $10 million per month because many customers used the cards mainly for rent payments and rewards rather than carrying balances or making other purchases. Wells Fargo ended the relationship early and deactivated its Bilt cards in February, requiring customers to switch to Bilt Card 2.0 with new partners or to Wells Fargo’s Autograph card. The transition coincided with a 1,300% spike in complaints to the CFPB, including cases where rent or mortgage payments were withdrawn but not delivered, or were bounced or delayed. Bilt said it prioritized members, expanded customer service, and communicated with impacted members.

"Warren also noted that some consumers were unable to make payments on balances still held at Wells Fargo or had balances transferred to new cards without authorization. The letter outlines mounting scrutiny over Bilt's transition away from Wells Fargo, which began issuing Bilt's credit card in 2022 under a partnership that had originally been expected to last through 2029."

"Wells Fargo ended the relationship early and deactivated its version of Bilt cards in February. It forced customers either to transition to Bilt Card 2.0, operated under new partners Cardless and Column, or move to Wells Fargo's Autograph card. Warren said the transition coincided with a 1,300% spike in complaints submitted to the Consumer Financial Protection Bureau (CFPB) that month."

"Warren cited several examples of customers who were allegedly harmed during the transition, including one renter whose payment was withdrawn and processed but never delivered to a landlord. Another customer's mortgage payment reportedly failed to reach a servicer, while others experienced bounced or delayed rent payments."

"Our members have been our priority since day one. While the transition to the Bilt Card 2.0 in February represents an even more exciting future that offers our membership richer rewards and greater flexibility, the transition also attracted unexpectedly high demand, and some of our members experienced gaps in service that are simply unacceptable to us, the statement read. In response, we increased our customer service capabilities to address this and proactively communicated with any impacted members."

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