Consumer complaint received 2024-01-23
Company: CITIBANK, N.A.
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Closing an account
Sub-issue: Funds not received from closed account

Complaint:
In XX/XX/XXXX, I created a Citibank checking account in order to try to take advantage of an opening bonus - you get a bonus if your account is a certain amount within 20 days of opening. I got married in XX/XX/XXXX and received many wedding gifts as checks so wanted to take advantage of this bonus. 

I deposited XXXX checks on the mobile app before realizing there was a limit. I added {$1000.00} from my XXXX account and {$25000.00} from my XXXX account to increase the funds in my new Citibank account. I deposited the remaining checks into the account at a branch, then shortly thereafter realized I could not access my account online. When I called, I was told the account was frozen under investigation for fraud and was transferred to the Fraud Dept ( XXXX, option XXXX ). I wanted to know if I was a victim of fraud or was suspected to be fraudulent- they did not tell me much except that the account was under investigation. After calling daily, they told me that the account was still frozen, but XXXX of the checks ( # XXXX ) had bounced due to insufficient funds, and they were trying to reach the issuer of XXXX of the other checks to verify it. I was able to reach the gifter- she was traveling internationally because a family member passed away recently. She then called Citibank to verify the check. 

Despite her verifying the check, I found out Citibank still decided to close my account. I was told it could take up to 60 days from official closure to receive my account balance in the mail. I went to a branch, as my husband and I just bought a house and were planning to move soon, and I was worried about the check getting lost in the mail. I was told they could not issue a check from the branch, nor could they guarantee I would receive my complete balance of {$36000.00}. Throughout this process, I was unable to access my account online, and only received XXXX notifications through the mail about what was going on - one notifying me of check deposits early on, and XXXX notifying me of closure. 

After waiting nervously, a month later I received a check dated XX/XX/XXXX in the mail from Citibank for my account balance, but the check was for {$29000.00} and was missing {$6700.00}. I went into the branch to ask amount the remaining amount and was told there were checks under investigation and suggested I call the Fraud Dept. I called the Citibank Fraud Dept and was told that I would need to call the issuing banks for the checks and ask the banks to call the Citibank Fraud Dept to verify the checks before they could release the amount to me. They were able to give me the check numbers under investigation ( XXXX in total, XXXX mobile deposit, XXXX deposited in the branch, totaling {$6700.00} ). Because most of the checks were deposited at the branch, I no longer had any info about the checks- so I went to the branch again and they printed out a copy of the checks deposited. I noticed XXXX of the checks was from the wedding guest who had called internationally previously to verify her check ( # XXXX ). I did not call the issuing banks because I honestly did not know what to tell them, and then I got busy with the holidays and our move. 

I called the Citibank Fraud Dept again today to check to see if any resolution had occurred from the investigation- the representative again told me I needed to call the issuing banks to have them verify the checks with the Fraud Dept by submitting a " harmless claim ''. I asked how I was supposed to obtain the phone number for all of these banks, and he said he could not help me. I noticed that the issuing bank of XXXX of the checks ( # XXXX ) was actually Citibank, so I asked if I could submit a harmless claim for that check, and -as if he changed his mind- he said that actually the maker of the check needed to call the Fraud Dept, not me. I asked if Citibank could contact the issuing bank directly to verify the checks, and he said no. 

Trying to wrap my head around what to tell my wedding guests who had gifted me these checks, I was curious if the issuing bank had released the money to Citibank, if the money had left my wedding guests ' accounts. They verified that, yes, the money was being held by Citibank and had already been issued by the check makers ' banks from their accounts. I asked what would have happened if I never called today, or if the issuing bank never calls them to submit a harmless claim for their clients ' checks -- the Citibank representative told me the money would continue to be held by Citibank indefinitely. I asked if Citibank was doing any investigation of their own to verify the checks and was told no.

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