Square Loan Denied in Error

[LHW170]

So I’ve been with Square now for nine years, had a least 8 to 10 loans through square with no problems. This time I was offered a loan which I accepted. However, in the process of waiting on the loan to be funded, square did a periodic review of my account and indicated that I was selling CBD which is against their policy, which I was not. I am an esthetic practice and perform CBD facials, less than 0.3% hemp being used which is perfectally legal within my scope of practice and state.  Square admitted that they made the error when they assumed that I was selling CBD and they did not actually look at my account to see “CBD Facial” costs listed.  However, since they put my account under review, my loan was denied for a supposed “Policy Violation” which I was not and cleared by Square due to their error. My loan application is now showing “Denied” and ineligible due to denied loan activity.  I have tried to reach out to SQuare about their error with no success, and no resolution what so ever and my business needs them to reevaluate. Any one else had this problem or have any suggestions? This is extremely frustrating especially since I have never had any issues with my loans before.

[TheRealChipA]

Hi @LHW170.  I’m sorry to hear about this frustration.  Question.  When you say you talked to Square, did you call the normal customer support line, or the dedicated Loan Support line, which is 855-897-1838?  I know it shouldn’t make a difference, but it can’t hurt to ask you all the same.  if you didn’t call the 855 number, I’d at least give that a shot and see if they can assist you further.  And, if you have already called this number, please accept my apologies for wasting your time.  Hopefully a Square rep can touch base with you here.

[LHW170]

I did call the dedicated Square Loan line three times this week. I also got transferred by customer service to the loan department and no one seem to know what thier during. Basically even though it was thier error, I just keep getting the run around about them not knowing when or if I can be reevaluated.  Also, I was told that they would have someone from underwriting reach out to me, via email only but that has never happened.

[TheRealChipA]

Understood.  Again, I’m sorry that you got caught up in this.  If Congress would just get their act together and pass legislation to recognize state laws here, this would all go away pretty quickly.  Unfortunately, right now anyone who even things the acronym CBD is going to get scrutiny.  No one (Square, Visa, MC, banks…..) wants to lose their federal banking privileges and sometimes crazy stuff like this happens, almost always to sellers because that is the way the world works.  I truly hope that you can find resolution sooner rather than later!

[LHW170]

Underwriting final sent me a standard canned email stating that I was denied due to their policy violation and they would not reverse their decision. That’s fine but they won’t even tell me when or if I can e Dr be reevaluated again. It’s been two months now and nothing. No loyalty to long term good customers seems to be thier motto. After seven years I am leaving square because I am just another keg in the wheel to them. So unfortunate! 

[jessential]

After a declined loan, there is no customer support to be found. They give you a generic answer with no basis and expect you to just move on an accept it.