Consumer complaint received 2018-09-20
Company: WEBSTER BANK, NATIONAL ASSOCIATION
State: NY
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Opening an account
Sub-issue: Confusing or missing disclosures

Complaint:
I opened a health savings account at XXXX XXXX and contributed funds to it. Six months later, I discovered a letter dated 4 months after the supposed opening of my account, notifying me that the account opening was incomplete. I immediately asked for a full refund of my contributions. XXXX XXXX   then required me to call it to " close '' my account and notified me of a {$25.00} fee to close such account. Since then, the bank has failed to clarify whether the account is open or not yet open. This lack of transparency in XXXX XXXX XXXX dealings with me is what I believe the CFPB can help with. Here is a detailed history : In XX/XX/2018, I opened an XXXX account. I am a contract worker and paid for my own qualifying health insurance ( at nearly {$500.00} a month ) and made 3 transfers of monetary funds to my XXXX account -- which as far as I was aware, was an open account -- during the 3 months that I could afford the health insurance. These funds, which I successfully transferred to my XXXX account, came from my own checking account and not from any employer paycheck deduction. During those 3 months, I received medical care which I paid out of pocket for what my health insurance did not fully cover. I have not yet made any claims to XXXX XXXX for reimbursement from my XXXX account for these medical expenses. 

On XX/XX/XXXX, I discovered a letter from XXXX XXXX which was misfiled under my bank statements. I opened the envelope and read the letter. It was dated XX/XX/2018, and signed by XXXX XXXX, senior vice president, chief of operations officer. The letter informed me that because I used a PO box address for enrollment through XXXX for an XXXX account, the account could not be opened " and any payroll contributions you elected will not be deposited '' without a residential address, per the Bank Secrecy Act ( BSA ). Nor are the funds usable for any qualified expenses to date until the account is considered open, according to the letter. I was surprised to learn that the account opening was incomplete, but I understand the BSA regulatory requirement and do not dispute that a residential address is required to open a bank account. 

I immediately emailed XXXX XXXX on XX/XX/XXXX, as I prefer to have a written record of any potential disputes. I was alarmed that aside from a single letter, the bank made no other attempts by phone, email, or other means to notify me that the account had not successfully opened. Nor had XXXX XXXX   ever rejected any of my money contributions to the account. I also do not know what the reference to XXXX is, because I have never had XXXX health insurance. Therefore, I became concerned about the accuracy of XXXX XXXX XXXX  management process as well as its demonstrated lack of care or courtesy to me as a client. I requested that the full amount of my contribution immediately be refunded to me. XXXX   XXXX responded that it was sorry that I wanted to " close '' my account and that it would charge a fee of {$25.00} to do so if I called to make the request or, alternatively, I could spend down my account until only {$25.00} remained. I asked for clarification on whether the account was open or not yet open, because I did not understand how a non-existing account could be closed nor how I could spend down an XXXX account that was not valid. Meanwhile, XXXX XXXX has been charging {$2.00} monthly for maintenance. I do not believe the bank expended any management cost in handling my money, no investments were made by me or the bank of my XXXX funds, and I have made no medical claims that required XXXX XXXX to perform any work, task, or action to serve me. 

Through further emails on XX/XX/XXXX and XX/XX/XXXX, I continued to seek clarification on the contradictory information provided by XXXX XXXX. The bank 's only response has been to insist that I call to discuss the matter. As a contract worker, I have no private space during the work day to discuss such a personal matter. I also have been working 10 - to 12-hour days, often including Saturdays and Sundays. On XX/XX/XXXX, I attempted to call XXXX XXXX while standing on the street. Interestingly, the bank 's automated phone system required that I enter my zip code. I  entered the zip code for my P.O. box and it was not accepted as a recognized address of mine. I entered my residential address zip code and was able to proceed. I spent 25 minutes of my 30-minute unpaid break on hold, waiting for a live human at XXXX XXXX to answer my call. No one ever picked up, and I had to return to work. I have not since been able to attempt another call. 

I do not include attachments here of the XX/XX/XXXX letter, proof of the 3 bank transfers to XXXX XXXX, or the email correspondence, because the bank should have all these records already, and I do not understand these facts to be in dispute.

Company response to consumer: Closed with explanation