Consumer complaint received 2021-07-16
Company: N26 Inc.
State: SC
Product: Credit card or prepaid card
Sub-product: General-purpose prepaid card
Issue: Unexpected or other fees

Complaint:
I am an American based overseas during COVID-19 and have been in XXXX, XXXX, and XXXX since XX/XX/XXXX. I frequently travel during non-COVID-19 times between my home in XXXX XXXX and my villa in XXXX. My career is in XXXX XXXX in XXXX XXXX. 

I have been unable to get back into XXXX since XX/XX/XXXX due to their border being closed to non-residents, so I have opted to stay and work remotely from XXXX. 

XXXX is largely a cash-based country, so I have used my XXXX debit card as well as an online bank ( XXXX   ) called N26, which is based in XXXX and New York. 

Unexpectedly two weeks ago, many N26 customers including myself received an email notifying us that we would need to verify our identities via a driver 's license or U.S. Passport. It was to be completed using the N26 app by XX/XX/XXXX. I attempted to verify my identity 9x using the app ( and its internal camera function ) with no success. Repeatedly the app would lock up in the middle of the process, and during this time, you could not contact N26 or use the chat feature. In many cases, it would lock up the entire XXXX. 

I reached out to N26 numerous times via email, on XXXX, on XXXX and received no response. Then on XX/XX/XXXX, they notified customers again via email that they were extending the deadline for customer identity verification due to problems customers were experiencing. 

During this time, there was virtually no customer support via phone or chat. My N26 card also stopped working at ATM machines here in XXXX, although it would work for small swipe transactions at XXXX and XXXX XXXX locations. 

I finally got someone on the phone on XX/XX/XXXX who explained to me that the company was experiencing major problems with the verification process, but that she could see that I had a balance in my N26 account of almost {$1000.00}, which I had previously transferred using XXXX XXXX in early XXXX. Again, I could not go to the ATM to take money out, however, but had moved money from XXXX XXXX to N26 dozens of times with no issue prior to this point. N26 had also collected a significant amount from me in fees for these services. 

The N26 representative explained to me that the only way to verify my identity was to use the app and that they had no other way to validate documents. She reiterated that she could see nothing wrong with my account ; that she could see hundreds of transactions over the past few months both in-person at locations in XXXX, at the ATM, and online purchases. She encouraged me to try again at other ATMs, which I did. 

Finally, I was able to get part of my balance out of the ATM but was blocked from other ATM transactions. The representative encouraged me to keep trying because otherwise, my account was going to be closed for not verifying my identity by XX/XX/XXXX. 

AGAIN, I AM OVERSEAS DURING A GLOBAL PANDEMIC AND THE LAST THING I NEED IS TO BE LEFT WITH NO MONEY TO LIVE ON. 

I continued to try to verify my identity over the next 48 hours using my U.S. Passport and the process would still not complete and verify. I again called N26 and a different representative explained to me that N26 was arbitrarily closing accounts and that he had personally fielded dozens of calls from concerned customers, including many American N26 customers who were abroad. 

He could not provide me any additional information on how I could possibly verify my account or when the remaining funds would be mailed to my address on file. He legitimately sounded exasperated in his position of having to tell N26 customers that there was nothing he could do. 

Today, I tried one last time to contact N26 and was told that no one could help me because my account was now closed. I could not even make it through the automated prompts. 

I am aware of dozens, if not hundreds, of complaints posted online and on social media about N26 and the spontaneous closing of accounts thus the reason for this complaint. 

Banks ( or XXXX  ) or anyone in financial services who are conducting banking services marketed to American citizens should be required to have 24/7 customer service available via the number printed on the back of the card. This entire situation with N26 was inexcusable and I plan to lodge a similar complaint with the XXXX  in the U.S. as well as banking regulators at the XXXX in XXXX. 

Furthermore, I plan to contact an attorney in XXXX XXXX when I return home in XXXX to gauge the feasibility of launching a class action complaint against N26. 

Any advice or additional details that the CFPB can provide are much appreciated.

Company response to consumer: Closed with explanation