Consumer complaint received 2023-12-08
Company: CITIBANK, N.A.
State: MD
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
This complaint is directed to Citibank 's mishandling of customer 's funds without proper explanation and failing to provide a meaningful way of communication to resolve the issue. 

Citibank removed {$14000.00} from my checking account ending in XXXX on XX/XX/2023. The transaction was labeled as an adjustment. There was no prior communication or notification from Citibank regarding this transaction. Later, I received a letter ( attached herein ) from Citibank dated XX/XX/XXXX stating that the transaction was due to a prior error, without explaining the error itself or why I should be the one paying for the bank 's error. I called Citibank four times regarding this issue on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, but was not given a confirmed answer. People who answered the phones, including the supervisor, took guesses as to what was going on and referred to a " back office '' that handles the issue. However, I was not able to speak to anyone in this " back office. '' Thus, Citibank effectively refused to explain to me the reason for taking my money and shut the door to speaking to anyone that actually handles the matter. I am left with no choice but to complain hoping that someone would look into this matter and give my money back. 

Taking a step back, based on the information that I gathered during the XXXX calls, this transaction may be related to a prior check fraud claim that was closed more than 2 months ago. Citibank 's customer service essentially blamed me for not responding to their information request. However, as can be seen from below, this allegation is baseless and contradict the evidence presented here. I also personally found it offensive to be blamed in this manner. Below I lay out the facts and my observations of the check fraud claim in chronological order to show why such allegation is erroneous. 

On XX/XX/XXXX and XXXX, XXXX  : XXXX checks were cashed from my Citibank checking account ending in XXXX ( my " old account '' ) and a total fund of {$41000.00} was deducted from this account. The checks were deposited on either XX/XX/XXXX or XX/XX/XXXX. I did not issue, I did not recognize, and I do not benefit from these XXXX checks. 

On XX/XX/XXXX : I called Citibank and filed a check fraud claim against these XXXX checks. I also opened a new Citibank check account ending with XXXX ( " new account '' ) and moved all my remaining funds into the new account, as advised by Citibank. The above discussed transaction on XX/XX/2023 was on the new account. 

On XX/XX/2023 : My old account was reimbursed with the total fund of {$41000.00} with XXXX transactions, the description for all transactions is 'returned check '. 

On XX/XX/2023 : I received a letter from Citibank stating that the check fraud claim was denied because the checks were returned unpaid. The letter is attached here. 

On XX/XX/2023, XXXX transfer funds {$41000.00} from my old account to my new account. 

On XX/XX/2023, I closed my old account after moving all remaining balance from my old account to new account. Citibank has put a restrain on this old account, I can not use this account anymore thus I decided to close it. 

On XX/XX/2023 : {$14000.00} was removed from my new account by Citibank and the transaction was labeled as an adjustment. The amount is the same as XXXX of the XXXX fraudulent checks. 

On XX/XX/2023 : I called customer service to inquire about the transaction for the first time, once I discovered this transaction. The customer service said this transaction was handled by the fraud department and I can only call back after the XXXX holiday. On XX/XX/2023 I called the customer service again. My line was transferred XXXX times to different divisions. Finally, I was told that Citibank sent a letter to me on XX/XX/2023 to request a statement of unauthorized use form ( " form '' ). Because I did not send back the form, my check fraud claim was denied. And because the check fraud claim was denied due to my failure to respond, they removed {$14000.00} from my new account. 

This explanation provided on XX/XX/XXXX is problematic for at least XXXX reasons. First, the reason for denying my check fraud claim contradicts what the XX/XX/XXXX letter states. The XX/XX/XXXX letter states that the reason is that checks are returned unpaid. Thus, the check fraud claim was actually rendered moot because the money was returned, not that I failed to provide any requested information. Second, the claim was denied 2 days after the claim was filed. 2 days is not a reasonable time period for me ( or anyone ) to even receive a letter from Citibank, let alone return what was requested in the letter. Thus, even assuming that a letter was sent out on XX/XX/XXXX requesting the form, I wouldnt have received that letter by the time Citibank rejected my claim on XX/XX/XXXX. Third, I never received this XX/XX/XXXX letter requesting the form. In fact, I suspect that Citibank never sent this XX/XX/XXXX letter out because they were able to get the money back and close the case without conducting any investigation. But now, Citibank is using my nonresponse to their XX/XX/XXXX letter as an excuse to take my money from my new account. This is unacceptable in another sense that Citibank promised me that my old and new account are totally separate. Because my old account is comprised, I specifically confirmed with them whether any suspicious activities will carry over to my new account. 

Without acquiescing to the allegation that I failed to respond to the letter requesting the form and solely to expedite the process, I visited a Citi branch XXXX in XXXX XXXX XXXX, XXXX, MD XXXX and obtained a copy of the form on XX/XX/2023. I have sent the form over to Citibank. 

On XX/XX/2023 : I received a letter dated XX/XX/2023 ( attached ) from Citibank stating that my money was removed from my account because of a prior error. The letter does not explain what and whose error it was. I called the number on the letter. But once again, the person who answered the call refers to the " back office '' that may be handling the matter. I was not offered an opportunity to speak to anyone in this " back office '' and was told to wait without any specific information regarding what was going on or when I will be contacted. 

In summary, Citibank took my money with no prior notification, refused to provide a meaningful communication to inquire, and blamed me for their own mistake. The only communication method I was provided is waiting for their phone call. However, this is extremely inefficient. The only time they will call me is when I was unable to answer the phone call ( e.g., in middle of a work meeting ). XXXX time I picked up the phone and ask them call me back in XXXX minutes, but of course no one called back. Every time I reach out to the customer service, I need to explain the whole situation, waiting for my line to be transferred ( potentially multiple times ), never got useful results from these lengthy phone call. Moreover, I am at XXXX weeks pregnant at the moment of filling this complaint. Given my inconvenient situation, I have asked whether they can contact my husband instead with my authorization, or send me email. They refused saying they are not allowed to send emails to clients, and I have to be the one they talk with. I don't feel secure about depositing fund in Citibank as they can withdrawal it anytime without appropriate explanations. Though I have been banking with Citi for more than 10 years, I don't feel be treated fairly when unexpected frauds happen.

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 monetary relief