Consumer complaint received 2019-01-23
Company: STATE FARM BANK, FSB
State: CA
Product: Checking or savings account
Sub-product: CD (Certificate of Deposit)
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
I have sent SF bank via email XX/XX/XXXX CD, with SF evidencing SF knows how to comply, how to provide proper Disclosure PRIOR to taking my {$100000.00}, and then harassing me with phone calls asking me is it one year or two year CD? Several calls SF XXXX said the Receipt we sent you is all you are going to get from us. Receipt contents are shown below. I can not tolerate any more XXXX harassing calls, refusals of Supervisor to contact me, and SF refusing over and over and over to comply with banking regulations OR GIVE ME ALL MY money back. XXXX XXXX promised to accomplish this, and I went to a real bank and got all the proper XXXX  & FDIC, and XXXX  Disclosures and Compliance documents in advance. SF now refuses to return my money unless I agree to {$1000.00} being withheld. But they took my XXXX and never issued a Certificate ( only Receipt ), and they have never asked me about giving me interest as I elect. I sent them XX/XX/XXXX CD, but SF has obviously fallen apart since Mr. XXXX CEO retired. I sent Certified Mail 7 days ago, and SF still insists they will keep my money, not abide by federal laws, and I can only retrieve this necessary support money by paying them {$1000.00} penalty when it is SF who violated the laws no me, a person living on Social Security. 

Attached is a copy of a XX/XX/XXXX SF Certificate of Deposit, which conforms to rules governing variable options, Disclosures, and signature acknowledging Disclosures prior to issuance. 
Note well " 1. General Terms. Words or phrases preceded by a [ ] is applicable only if the [ ] is marked. Phrases containing a blank space which is not filled in or completed with N/A are not applicable. '' SF advised me to switch my MM {$97000.00} to a CD by making appointment and doing it with my agent XXXX XXXX. I did this. I walked out one hour and 45 minutes later with only ONE sheet of paper given to me. It is a receipt acknowledging SF received & acknowledged receipt of my check for {$3300.00} XX/XX/XXXX XXXX PST. 

NOTHING, no other paper was handed to me -- no Disclosure, no copy of Interest Rate Disclosures prior to Receipt of {$100000.00}. Never has SF asked me to elect how my Interest payments were to be handled. 
Never has SF obtained my signature on any paper, form, or Disclosure -- because there was none. It was chaotic, and unprofessional, and not Compliant with Federal Regs. 

My SF XX/XX/XXXX CD does INCLUDE other notations which are signified with [ ]. 
On the BACK of Certificate are Items 8 - 12. 
9. " Early withdrawal Penalties. If SF Bank allows a withdrawal, either partial or total, each time it allows such a withdrawal, Depositor may be assessed an early withdrawal penalty as set forth above. '' My CD was never properly opened when SF acknowledged Receipt of my {$100000.00} funds XX/XX/XXXX, which was important to me to have CD opened in XX/XX/XXXX. XX/XX/XXXX, and other dates XX/XX/XXXX, XXXX, SF Recovery called to ask me if I wanted a One Year or Two Year  account. This proves there was NO meeting of minds, no SF Disclosure, no signing by me that I received a Disclosure, and that I was opening a CD with a 2.6 % annual percentage rate. 

It was XX/XX/XXXX, 17 days later, that I received a Receipt for Certificate of Time Deposit. Never has SF given me the variable terms, Notice of applicable Interest Rate, Term of CD. All I received was XX/XX/XXXX Receipt stating only these words : Initial Maturity Date XX/XX/XXXX. Issued Date XX/XX/XXXX. Term 12 months. Amount of Certificate {$100000.00}. Annual Interest Rate 1.98 %. APR 2.00 %. For terms & conditions, please reference your Disclosures & Customer Agreements brochure, and copy of your Signature Card. 

What Card? I have absolutely NO COPY of such a CARD! 
I never received Disclosure of variable terms ( not in your brochure ). 
How could I possibly AGREE and contract to SF conditions which I had never seen since the XX/XX/XXXX Certificate of Deposit? SF never verified whether it was fixed or variable-rate, and how Interest was to be treated. SF never even showed me the far-lower interest rate, which is ruinous, because I only opened CD with SF because I had calculated the Interest Payments which I would receive. 
This is NOT a State Farm PRODUCT as XXXX non-expert staff stated. This is a Regulated Banking Transaction and SF has violated them. 

2. SF never informed me of any of this printed Policy, nor Change of  Policy Notice on XX/XX/XXXX, nor any day thereafter. Claims that I signed a Disclosure Paper are false. 
I signed nothing. I entered Electronic Signature SOLELY to SHOW appearance of my Signature. I was not told I was doing anything other than a establishing what my signature looked like. 

I want this resolved because SF bank can not take {$100000.00} and pretend it is their product. It is my needed money. XXXX XXXX told me she'd have the entire {$100000.00} plus Interest accrued at 2.6 %, and costs ( incoming wire transaction fee {$25.00} ), wired to my checking account today. This is the appropriate resolution legally, because SF issued a Receipt proving SF received all Funds XX/XX/XXXX, and the accepted Rate was 2.6 %. Why would I accept 1.98 % when I can get 2.6 % in a real bank from real bankers in my town? I may take further actions as well for the abusive and non-legally acceptable treatment I received during harassing phone calls from XXXX, who I learned weeks later is XXXX XXXX in SF Recovery department. This is serious senior abuse. 

I sent SF information for their lawyers. This will be the first time SF has involved ( on their side ) a trained professional such as lawyer, banker, Compliance officer. They treat me like a homeless person in the check-out line of a big box discount store. 
https : //www.fdic.gov/regulations/laws/rules/6500-4100.html ( u ) Time account 2.Relation to Regulation D.Regulation D of the Board of Governors of the Federal Reserve System ( 12 CFR part 204 ) permits in limited circumstances the withdrawal of funds without penalty during the first six days after a " time deposit '' is opened. ( See 12 CFR 204.2 ( c ) ( 1 ) ( i ). ) But the fact that a consumer makes a withdrawal as permitted by Regulation D does not disqualify the account from being a time account for purposes of this part. 
( v ) Variable-rate account. 
1.General.A certificate of deposit permitting one or more rate adjustments prior to maturity at the consumer 's option is a variable-rate account. 
Section 1030.3 -- General Disclosure Requirements ( a ) Form. 
1.Design requirements.Disclosures must be presented in a format that allows consumers to readily understand the terms of their account. Institutions are not required to use a particular type size or typeface, nor are institutions required to state any term more conspicuously than any other term. Disclosures may be made : i.In any order. 
ii.In combination with other disclosures or account terms. 
iii.In combination with disclosures for other types of accounts, as long as it is clear to consumers which disclosures apply to their account. 
iv.On more than one page and on the front and reverse sides. 
v.By using inserts to a document or filling in blanks. 
vi.On more than one document, as long as the documents are provided at the same time. 
2.Consistent terminology.Institutions must use consistent terminology to describe terms or features required to be disclosed. For example, if an institution describes a monthly fee ( regardless of account activity ) as a  " monthly service fee '' in account-opening disclosures, the periodic statement and change-in-term notices must use the same terminology so that consumers can readily identify the fee. 
end of quote Yes, I agree to publishing this Complaint because " online bankers '' think they are NOT SUBJECT to federal banking laws .... and common decency, and federal deceptive practice laws. They could determine my age from my long affiliation with SF insurance products.

Company response to consumer: Closed with monetary relief