Consumer complaint received 2023-05-03
Company: CITIBANK, N.A.
State: DE
Product: Checking or savings account
Sub-product: Checking account
Issue: Closing an account
Sub-issue: Funds not received from closed account

Complaint:
I had filed a previous complaint against Citibank ( XXXX ) back in XXXX, XXXX. 

My complaint was that back in XXXX, Citibank claimed I committed fraud by receiving SBA grant into a personal account. Per their response to my complaint in XXXX, they were going to return the funds back to the SBA. Moreover, some of those were my paychecks paid into that account. 

A year and a half later, XX/XX/XXXX, I reached out to SBA again to enquire about the re-disbursement of my funds {$7300.00} that Citibank returned back in XXXX and was informed that Citibank never returned any funds to them. It turns out that from XX/XX/XXXX to XX/XX/XXXX, Citibank kept my funds. 

On XX/XX/XXXX, I reached out to Citibanks XXXX XXXX XXXX via email and phone. The representative on the phone said someone would contact me. He then called back in a couple of minutes and said his manager said I needed to email them a signed letter giving them permission to return the funds to the SBA. I did and have a copy. 

This option was never made available to me back in XXXX. My account was frozen for 3 months and then closed. I called customer service multiple times and spoke to people in XXXX who kept telling me that there was no one I could speak with and that the back office was handling the situation. 

I faxed over some of my contracts as an Independent Contractor on my own accord, but no one from the Fraud Department ever reached out to me to request more/ other/ or correct documents. I was just notified that my savings and checking accounts were closed. 

My concern is that, Citibank thought I acquired the funds fraudulently and decided to keep it. 
It makes no sense that a bank would require my permission to return funds that they claim was ill gotten. When a fraudulent check is deposited into an account, the bank will return it without the customers consent. I think Citibank was trying to do damage control because they kept the funds. Why will you need my consent to return grants that you claim didnt belong to me. 

As an independent XXXX, I really didnt understand how the process worked. I did contracts using my social security number. I applied to the SBA using by social security number and got approved after my tax documents were verified. I didnt claim to own a business and therefore didnt have a business account. I thought it was okay to receive my funds in my personal account. 

Now SBA is saying they are no longer processing these grants. Citibank owes me that {$7300.00}. Had they returned it back in XXXX, I would have gotten it back from the SBA. 

Why wasnt my accounts closed when I received the PPP EIDL loan? I also applied as an Independent XXXX and not a business. Got approved twice and the funds were deposited in personal Citibank savings account. That was 6 months before I received that grant that made you close my account. So its okay to receive SBA funds in personal savings, but not checking?

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation