Consumer complaint received 2022-07-18
Company: CITIBANK, N.A.
State: CO
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
Citibank widely promotes individuals to open banking accounts and fulfill requirements in exchange for cash bonuses. On XX/XX/XXXX, I opened such a checking account, subsequently maintaining {$50000.00} on deposit for sixty days with the expectation of receiving a {$700.00} bonus. Also on XX/XX/XXXX, I opened a Citibank savings account, subsequently maintaining a sixty-day {$10000.00} balance for which I expected to receive a {$100.00} bonus. 

Having satisfied requirements of savings and checking promotions, I initiated electronic withdrawal of {$58000.00} on XX/XX/XXXX. I intended to leave {$1500.00} on deposit to keep both accounts open and free of monthly service charges. Citibank immediately blocked the transfer, froze the accounts, and deactivated my online credentials. Upon realizing Citibanks actions, I placed numerous calls to customer service. I was advised that Citibanks Fraud Department had received an alert for which it would be conducting a review. Citibank representatives ( via account services and the fraud department ) refused to provide any detail surrounding the alleged fraud alert. Furthermore, they could not explain why I was not contacted about any suspicious activity on my accounts. I continued to call Citibank over the next few days only to be promised return calls from supervisors who never called. Representatives eventually started replying to inquiries by reading a prepared statement and then abruptly ending calls. That statement advised that Citibank had unilaterally closed my accounts and severed our banking relationship. The statement provided neither any reason for the action nor any explanation for not consulting with me. 

I called Citibank Headquarters on XX/XX/XXXX. I eventually spoke with a representative of Citibanks Litigation Support Department who referred me to Citibanks Executive Response Unit. I e-mailed my first complaint to that unit on XX/XX/XXXX. Upon request, I submitted bank records showing the source of the {$60000.00} that was frozen across my checking and savings accounts. 

On XX/XX/XXXX, an Executive Response Unit representative advised that Citibank had reversed its decision to close my accounts and access was restored to my {$60000.00}. At that same time, the representative advised that the {$700.00} bonus was credited to my checking account given my fulfillment of promotional requirements. However, the representative advised that I was ineligible for the savings account bonus, citing that concurrent promotions were disallowed. I subsequently submitted a copy of the savings account promotion to the Executive Response Unit. 

On XX/XX/XXXX, an Executive Response Unit representative reversed the assertion that concurrent promotions were not allowed. My savings account was therefore credited with the {$100.00} bonus. 

On XX/XX/XXXX, I requested that Citibank compensate me for the several hours I spent resolving problems not of my making. I also requested compensation for lost investment opportunities due to Citibank freezing my {$60000.00} without proper cause and notification. 

It should be noted that there was no legitimate reason for suspicion, no less a fraud alert, and much less closure of my Citibank accounts. My attempted withdrawal of funds on XX/XX/XXXX was bound for the same external account used to fund the accounts. That external account had already been vetted by Citibank. 

On XX/XX/XXXX, the Executive Response Unit denied my request for further compensation. In doing so, it cited, Upon review of your concerns, our Fraud Unit was engaged regarding what transpired. They advised that a review of the account was initiated and your account initially blocked on XX/XX/XXXX. The purpose of the review is to identify and prevent fraud related transactions form [ sic ] occurring on your account. The process and review, protects our customers as well as the bank from potentially fraudulent activity and financial loss. Our Fraud Unit verified the account activity and the block was removed on XX/XX/XXXX. 

It is noted that Citibanks response is not reflective of what actually occurred. Citibank froze my accounts on XX/XX/XXXX, as evidenced by the blocking of my withdrawal. By XX/XX/XXXX, Citibank had already decided to close my accounts. That fact is documented in a letter mailed to me by Citibank on XX/XX/XXXX. That letter featured the following statement : Based on a recent review of your Citi Accelerate Savings account, we found that you have violated the terms of your account per the client manual. As a result, your Citi Accelerate Savings account and any other Citi accounts you have will be closed within 60 days of this communication. 

On XX/XX/XXXX, I spoke with a representative of Citibanks Executive Response Unit. I asked for clarification of the terms of ( my ) account that I was accused of violating leading to closure of my accounts. In response, the representative asked whether I had read the Client Manual for Consumer Accounts. She then clarified that Citibank may close any account for any reason. I countered that such explanation was insufficient as I had been repeatedly accused ( in writing and via phone calls ) of having violated account terms. The representative was unable to provide any basis for the alleged violation. At that same time, I asked why Citibank did not contact me in the event of any concern about my accounts. The representative advised that the letter, dated XX/XX/XXXX, served as my notice. That answer was confounding as Citibank had already decided to close my accounts by its mailing. 

The following is a chronology of my beliefs as to Citibanks motives : - I believe Citibank introduced a fraud alert on my accounts to introduce rationale for closing them, thereby disqualifying me from meeting the final requirement ( accounts must remain open until bonuses are posted ) to receive promotional cash bonuses. 
- I believe Citibank was not proactive in contacting me because I could have readily resolved any allegation of suspicious activity on my accounts. 
- I believe Citibank closed my accounts in attempting to not pay cash bonuses. 
- I believe Citibanks Executive Response Unit attempted to lend credibility to a contrived fraud alert by requesting external banking records substantiating original funding of my accounts.

- I believe Citibanks Executive Response Unit reversed its decision to close my accounts only as a result of the hours I spent advocating on my own behalf.

- I believe Citibanks Executive Response Units reversal of its decision to close my accounts reflects the impropriety of Citibanks original action.

- I believe Citibanks Executive Response Unit purposely misrepresented terms of its savings promotion after acknowledging that I met requirements of its checking promotion. 
- I believe Citibanks Executive Response Unit conceded that I met requirements of the savings promotion only because I submitted indisputable proof of terms.

- I believe Citibanks Executive Response Units reversal of its decision to disqualify me from the savings bonus reflects the impropriety of its previous assertion. 
- I believe Citibanks Executive Response Units XX/XX/XXXX written response purposely misrepresented facts in attempting to explain the impropriety of Citibanks actions. Furthermore, that statement contradicted information communicated in a Citibank letter dated XX/XX/XXXX. 
- I believe Citibanks Executive Response Units inability to specify how I violated terms of my accounts ( as repeatedly alleged via letter and phone calls ) reflects impropriety in Citibanks justification for closing my accounts.

- I believe Citibanks Executive Response Unit resorting to the assertion that any account may be closed, for any reason, reflects the impropriety of Citibanks actions.

In conclusion, I believe that Citibanks token concessions, reversal of actions, misrepresentation of facts, scrambling for explanations, refusal to consult with accountholder, and invocation of contrived justifications all represent insincere dealings with customers such as myself. Search of the Consumer Financial Protection Bureau database indicates no lack of similar complaints filed against Citibank. I continue to monitor social media outlets that are also rife with such complaints. I am concerned that Citibank appears committed to a pattern of deceptive marketing and business practices surrounding its promotional savings/checking accounts. 

I am prepared with further testimony and physical evidence surrounding this complaint. For the time being, I am attaching the following documents : Citibank letter dated XX/XX/XXXX, e-mail sent to Citibank Executive Response Unit on XX/XX/XXXX, e-mail sent to Citibank Executive Response Unit on XX/XX/XXXX, e-mail sent to Citibank Executive Response Unit on XX/XX/XXXX, Citibank Executive Response Unit statement dated XX/XX/XXXX, e-mail sent to Citibank Executive Response Unit on XX/XX/XXXX, and Citibank Executive Response Unit statement dated XX/XX/XXXX.

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