Consumer complaint received 2023-11-16
Company: Relay Financial (US), Corp.
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
This is the entire email conversation I've been able to have with Relay about my frozen accounts since I attempted to deposit a check from a client. 

The bank refused to deposit the check without a copy of a contract between my business and my client, something I am quite sure is not a legal requirement for such a small deposit. 

Additionally, Relay 's compliance team next decided to not only freeze that deposit, but to then freeze all transfers into and out of all of my business accounts. Deposits, payments, automatic ach draws, all failing left and right. This is beginning to affect my business credit rating as payments are missed to vendors, and it is definitely blocking my ability to do business. 

I need Relay financial to release the freeze so I can remove the funds from these accounts, transfer them to another business bank and so I can close my accounts with Relay Financial. 

The transcript of the emails follows from newest to oldest in order. 
**************************** XXXX, I have no access to my business account funds. Transfers of all funds into or out of accounts at Relay have been frozen. Deposits are failing, and payments to vendors are failing. Automatic charges are failing. 

Relay financial is causing significant harm to my business credit rating, my ability to do business, and soon automatic payments to the IRS and California State Franchise tax board will be coming up and the government will become involved. 

XXXX, I called customer service at Relay Financial and the support person told me that there is nobody who can fix this other than you specifically. 

I need this resolved. What is happening right now to resolve this? When can I expect to regain access to my funds? 

I have submitted an official legal and regulatory complaint with the company. My next step is to file a complaint against Relay Financial and Thread bank with the Consumer Financial Protection Bureau. 

XXXX XXXX XXXX # # - Please type your reply above this line - # # Your request ( XXXX ) has been updated. To add additional comments, reply to this email. 


XXXX XXXX ( Relay Financial ) XX/XX/2023, XXXX EST Hi [ redacted ], We apologize for any inconvenience this may cause. The compliance team regularly reviews transactions and is required to reach out to certain business owners depending on the nature of the transaction. We emphasize security for Relay account holders and our own organization and undertake this process to best ensure we can uphold this value. 

Again, we apologize for any inconvenience caused. 

Best, XXXX XXXX. 
Onboarding Specialist Relay Make sure youre getting the most out of Relay : https : //support.relayfi.com/hc/en-us [ signature ] XX/XX/2023, XXXX EST The money is already in my account, just leave it alone. Im taking steps of my own to close my accounts with Relay as a result of this interaction. 


XXXX XXXX ( Relay Financial ) XX/XX/2023, XXXX EST Hi [ redacted ], We sincerely apologize for any disruption caused due to the temporary account freeze. The occurrence was a result of an automatic verification process that couldn't be completed for the recent check deposit. In such cases, our compliance team steps in to ensure the security and integrity of all transactions. They make every effort to verify its details. 

Please rest assured that we have taken measures to prevent such instances from happening again, except when absolutely necessary to maintain security. 

I have reached out to our banking partner to put a stop to this payment, and I will have an update for you shortly. 

Thank you for your patience and understanding. 

Best, XXXX XXXX. 
Onboarding Specialist Relay Make sure youre getting the most out of Relay : https : //support.relayfi.com/hc/en-us [ signature ] XX/XX/2023, XXXX EST I will be closing my relay accounts today. This has been ridiculous. No bank operates like this. 

XXXX XXXX ( Relay Financial ) XX/XX/2023, XXXX EST Hi [ redacted ], We apologize for any inconvenience caused. However, once the check is under clearing status, the payment can only be stopped by the issuer or the issuer 's bank. We understand your frustration and we apologize for any misunderstanding. If you have any further questions or concerns, please let us know and we'll be happy to assist you. 

Best, XXXX XXXX. 
Onboarding Specialist Relay Make sure youre getting the most out of Relay : https : //support.relayfi.com/hc/en-us [ redacted ] XX/XX/2023, XXXX EST XXXX, I have asked the client to issue an ACH payment to my other business bank. Please void the check I uploaded from [ client ]. 

[ signature ] XX/XX/2023, XXXX EST This is ridiculous. I will not be wasting more time on this with Relay Financial. 

[ signature ] On XX/XX/2023, at XXXX, XXXX XXXX ( Relay Financial ) XXXX wrote : XXXX XXXX ( Relay Financial ) XX/XX/2023, XXXX EST Hello [ redacted ], I understand your concerns about the request for a contract with your client. At Relay Financial, we aim to make banking as straightforward as possible for our customers. However, there are certain protocols we need to follow for some transactions. I'm very sorry if this has caused any inconvenience. 

Please note that these measures are in place to ensure all transactions ' security and comply with financial regulations. 

With that, our compliance team requires supporting documents to verify the details of this transaction. If you have any signed documents or any other form of evidence that can help us in this process, please provide them. I apologize for any inconvenience caused and appreciate your cooperation in this matter. 

If you have any further questions or need additional assistance, feel free to ask. We value your business and are here to help. 

Best, XXXX XXXX. 
Onboarding Specialist Relay Make sure youre getting the most out of Relay : https : //support.relayfi.com/hc/en-us [ signature ] XX/XX/2023, XXXX EST I cant provide the requested contracts because they dont exist because there is no contract between me and the client because the time and materials nature of the work is not contractually based. 

Was that not clear in my initial email to you? 

If this is going to continue to be a problem. I will simply stop using Relay bank for my business banking needs. 

[ signature ] On XX/XX/2023, at XXXX, XXXX XXXX ( Relay Financial ) XXXX wrote : XXXX XXXX ( Relay Financial ) XX/XX/2023, XXXX EST Hi [ redacted ], Thank you for your response. 

We sincerely apologize for any disruption caused due to the temporary account freeze. The occurrence was a result of an automatic verification process that couldn't be completed for the recent check deposit. In such cases, our compliance team steps in to ensure the security and integrity of all transactions. They make every effort to verify its details. 

We understand that this may be a new requirement for you, and we apologize for any inconvenience caused. However, we must maintain the highest level of security and compliance. 

By providing the requested documentation, you will help us expedite the verification process and ensure a smooth experience for future transactions as well. If you have any further questions or concerns, please feel free to let us know. We are here to assist you. 

Thank you for your continued trust in our services. Should you have any further questions or concerns, please don't hesitate to reach out to us. 

Best, XXXX XXXX. 
Onboarding Specialist Relay Make sure youre getting the most out of Relay : https : //support.relayfi.com/hc/en-us [ signature ] XX/XX/2023, XXXX EST XXXX, Ive never once in 23 years in business been asked by a bank to provide a contract with a client to make a deposit from that client. This is ridiculous. I do not have a contract with this client. The work is done on a time and materials basis. 

Please provide a detailed explanation for this over reach on the part of Relay bank. The check is good, there should be no other question. 

[ signature ] XXXX XXXX ( Relay Financial ) XX/XX/2023, XXXX EST Hi [ redacted ], Thank you for reaching out to us. I understand that you have a concern regarding a recent transaction. Our compliance team is currently working on verifying the details of this transaction. To expedite this process, it would be greatly appreciated if you could provide us with a signed contract with [ client ] that verifies the transaction details. 

If you have any further questions or need assistance with anything else, please let me know. I'm here to help! 

Best, XXXX XXXX. 
Onboarding Specialist Relay Make sure youre getting the most out of Relay : https : //support.relayfi.com/hc/en-us [ signature ] XX/XX/2023, XXXX EST XXXX XXXX ( Relay Financial ) XX/XX/2023, XXXX EST Hi [ redacted ], This is XXXX from Relay Financial 's Customer Operations Team . We are reaching out to you about a recent check deposit of {$2100.00}, about which our team has asked for some more information. Would you please provide a response to the question below before 4 business days from today so that we can ensure the funds are made available as normal : Would you please provide a signed contract for the goods or services paid for by the [ client ]? 

Until this information is received, we won't be able to process further transactions. Once a response is provided, we can ensure that this and all further account transactions can be processed as normal. We appreciate your understanding and look forward to your response! 

You can upload these documents as an attachment to this email thread. Please let us know once these have been uploaded so that we can ensure your account is reviewed for verification as soon as possible! 

P.S. Please ensure you do not send us a screenshot and provide us with a full copy of the documents requested. For any questions related to this please reply to this email for a quick response from Relay. 


Best, XXXX XXXX. 
Onboarding Specialist Relay Make sure youre getting the most out of Relay : https : //support.relayfi.com/hc/en-us This email is a service from Relay Financial. Delivered by XXXX  [ XXXX ]

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation