Consumer complaint received 2023-02-09
Company: STATE BANK OF INDIA - NEW YORK BRANCH
State: IN
Product: Checking or savings account
Sub-product: CD (Certificate of Deposit)
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
On XX/XX/XXXX, State Bank of India ( hereinafter SBI or the Bank ) responded to a Complaint ( # XXXX ) with the following FALSE STATEMENT as published on the CFPB online portal : Please note the State Bank of India does not have, and did not have, a customer relationship in the United States with the person filing the complaint. ( Exhibit 1 - pg. 3 ). The Bank is further denying its fiscal and fiduciary duty to protect public trust by safeguarding XXXX XXXX assets. The Bank ( as a parent company ) is also obfuscating its obvious connection between sister branches. XXXX XXXX replies are as follows. 

SBI CHICAGO GAVE XXXX XXXX A LOAN. THIS CONSTITUTES A CUSTOMER RELATIONSHIP. 
By the Banks own written admission, XXXX XXXX was the signatory on a loan issued by the State Bank of India in Chicago. A loan is prima facie evidence of a customer relationship with the Bank. In the Banks letter addressed to XXXX XXXX, XXXX XXXX wrote : The loan was paid off in 1998. ( Exhibit 2 pg. 1 ) THE ACCOUNTS IN QUESTION ORIGINATED IN THE CHICAGO BRANCH. XXXX XXXX SUBMITTED SAID ACCOUNTS AS COLLATERAL FOR HIS LOAN FROM THE BANK. 
As collateral for the referenced loan relationship, XXXX XXXX submitted his own monetary assets to the Chicago Branch. Accordingly, the Bank placed a lien upon XXXX XXXX assets in Chicago. On the account receipt issued by the Bank, SBIs bank officer wrote Lien to SBI in CHICAGO. ( Exhibits 3a and 3b Account Receipts ). 

AFTER THE LOAN WAS PAID OFF, THE BANK NEGLIGENTLY MISPLACED XXXX XXXX REMAINING COLLATERAL. INTERNAL CORRESPONDENCE BETWEEN SISTER BRANCHES OF THE BANK DOCUMENTS THE BANKS NEGLIGENCE. 
In internal bank correspondence between SBI Chicago and SBI India, the Bank wrote instructions to remove liens from XXXX XXXX assets. SBI India acknowledged this written instruction from the Bank, and also admitted that they were unable to trace one of XXXX XXXX accounts. The removal of liens is prima facie evidence of XXXX XXXX relationship with the Bank. The Banks documented inability to locate XXXX XXXX accounts is prima facie evidence of the Banks negligence. ( Exhibit 4 Internal Bank Correspondence ). 

SBI CHICAGO IS A SISTER BRANCH TO SBI INDIA. COLLECTIVELY, THE STATE BANK OF INDIA ( as the parent bank ) IS RESPONSIBLE FOR NEGLIGENTLY MISPLACING XXXX XXXX ASSETS. 
************************************************************************** Previously Closed Complaint ( # XXXX ) My wife and I invested money ( via certain Certificates of Deposit ) at the State Bank of India in Chicago, IL ( hereinafter the Bank ) XXXX Officials of the Bank have indicated in writing that they lost our money, and that they can not trace our funds. Please see the detailed facts below. I am also uploading documents substantiating these claims. My wife, while employed as Deputy Manager at the Chicago Branch of the State Bank of India ( the Bank ) bought three certificates of deposit termed as XXXX of varying denominations ( hereinafter referred to as CDs ). We submitted the original documents substantiating the CDs to the Bank as collateral for a loan we took from the Bank in XXXX. In XXXX, or thereabout, we paid off the loan in full using SOME of the funds in the CDs. There was a remaining balance of at least {$10000.00} ( plus interest accrued ) left in the CDs after we paid the loan off. Also in XXXX, we authorized Chicago officials of the Bank to reinvest the remaining balance in updated CDs of the same type ( known as XXXX  ) in Chicago. In XXXX, we learned that, without our permission, the remaining funds were transferred by the Chicago branch to an affiliated branch of the Bank in XXXX, XXXX. Officials of the Bank in both Chicago and in XXXX are now stating that our funds are missing, and they are unable to trace our money. When I tried to follow up on the accounts in Chicago, the Chicago branch employees claimed that their policy compelled them to throw away documented proof of our accounts because the accounts are more than five years old. As a result, I had to travel to XXXX multiple times to follow up on the invested funds that we entrusted to the Chicago Branch of the Bank, to no avail. As you are aware, these CDs are legally binding contracts. Per the terms of the contract, the Bank is obligated to keep our savings safe, reinvest them automatically, and to return it on demand. Unfortunately, so far, all our inquiries about our funds have fallen on deaf ears. This money is a big part of my retirement and healthcare savings. Simply put, the State Bank of India in Chicago has a legal as well as moral obligation to return our money with interest. We have exhausted all other avenues of communication, and we are now requesting your help to hold the Bank accountable.

Company response to consumer: Closed with explanation