Consumer complaint received 2017-12-12
Company: CITIBANK, N.A.
State: MD
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Getting a credit card
Sub-issue: Delay in processing application

Complaint:
On XXXX XXXX XXXX, via Citibanks website, I applied for a Secured Mastercard Application ID  XXXX. I submitted all the requested information and authorized a {$1000.00} withdrawal from my checking account to cover the security deposit. 

On XXXX XXXX, about a week later, I receive a letter from Citibank, requesting additional information the bank needed to allow my application could proceed : a copy of a recent bank statement and a NEW deposit. I promptly mailed both via USPS on XXXX XXXX XXXX a XXXX bank statement and a [ paper ] check for {$1000.00}. Citibank received my mailing a few days later as evidenced by the fact that my check cleared my checking account on XXXX XXXX, XXXX. Per the information on the back of the check, it was deposited on XXXX XXXX and processed on the XXXX. 

On XXXX XXXX, XXXX seeing that my check had cleared - I called Citibank to inquire about the status of my application. I was told that my application was in good standing and that I should expect to hear confirmation by the end of the week. 

On XXXX XXXX, XXXX - not having heard anything from Citibank the previous week, I called again to ask what seemed to be the hold up. I explained that, as XXXX was approaching, I needed access to the money Citibank was now holding for almost 2 weeks i.e. I really needed the credit card I had applied for. Once again, I was told that I would hear something within that week. 

On XXXX XXXX, XXXX once again not having heard anything from Citibank the previous week, I called AGAIN, this time requesting to speak with a Supervisor so I could get some more informed and detailed answers. After being kept on hold for some 15 minutes, I was finally connected to a Supervisor named XXXX ( ID : XXXX ). XXXX was apologetic but not helpful. I explained to him in some detail what had transpired to date, including that the check I sent as a security deposit had cleared my account 3 weeks ago. Oddly, he still could not ( or did not want to ) grasp the fact that Citibank ALREADY HAD MY SECURITY DEPOSIT and kept telling me that the bank needed to verify that I had the money in my account. He assured me that I would have an answer by the end of the week. When I said that, given the outrageously awful Citibank service thus far, I may just want to cancel the entire application and get my money back, he said this was not possible. I could not believe my ears! Not only was Citibank holding my money hostage for 3 weeks now, I could not get it back even if I wanted to! 

On XXXX XXXX XXXX ( Friday ) I routinely checked my bank account and, much to my bewilderment, overnight Citibank had removed ANOTHER {$1000.00} from my account!! This was done without my authorization and, at this point, Citibank was holding {$2000.00} of my money with NO indication about when ( or if! ) I would be receiving my card! I immediately called Citibank and after another 10 or 15 minute wait was connected to a Supervisor named XXXX XXXX. Once again, I described everything that transpired to date and added that Citibank had now removed ANOTHER {$1000.00} from my checking account, this time without authorization. XXXX XXXX told me that he would immediately rectify the situation and call me back within the hour to confirm. 

I never got the promised call back from XXXX XXXX so that evening I called Citibank AGAIN and this time was connected to a XXXX. AGAIN I described the situation and AGAIN expressed my outrage that Citibank was now holding {$2000.00} of my money hostage,  {$1000.00} of which was removed from my account without authorization! XXXX told me that the department dealing with my application was closed for the weekend and that she will make sure to communicate my issues to the appropriate people so they get them Monday morning. She suggested that I try putting a stop payment with my bank on the 2nd {$1000.00} Citibank withdrew which I tried to do but was unsuccessful. 

On XXXX XXXX, XXXX I was informed by my bank that I was charged a {$38.00} overdraft fee to cover Citibanks 2nd, unauthorized, withdrawal! 

On XXXX XXXX XXXX I called Citibank again and after asking to speak to a Supervisor was connected to a XXXX in a completely different department. She introduced herself as Account Supervisor in Kentucky, Team 3. I asked her to pull up my application and read through what my issue was. She did and then told me that she will need to speak with someone in the appropriate department in order to get more information. After keeping me on hold for almost half an hour, she finally told me that I needed to fax a copy of the cancelled check I had mailed in, including the back side as proof that this check was indeed deposited by Citibank! Once again, I could not believe my ears! To make sure, I asked if Citibank indeed had no record of ever depositing my check which she confirmed ( even though she also confirmed that the bank did receive a copy of my bank statement that was in the same envelope, stapled to the check! ). I said that I do not have easy access to a fax machine ( who does these days!? ) and asked if she could provide an email address. After another 5 to 10 minute wait I was provided an email address in Credit Operations and I proceeded to email all requested information ( 5 attachments! ) On XXXX XXXX XXXX I received a voicemail from a XXXX in the Citibank Secured Card department telling me that they located my check and that I should call him back to as there are a number of ways we can handle this. I called XXXX at the number provided and a reasonably polite gentleman with a bit of a cavalier attitude answered. He told me that they found the check thanks to the information I provided the day before. I told him that I had verbally given all that information to XXXX XXXX last week and he just said Well, I dont know what happened but that is water under the bridge ; lets move forward! He then told me that the money was applied to my Sears Credit Card. This despite the fact that, I do not own a Sears credit card, have not shopped there in at least a decade and have certainly never received any correspondence from Sears concerning any account! I also asked why was my check even applied to this [ non-existent/fraudulent ] account when the check expressly said that it was to be used for the secured card application. He did not have an answer and simply said he doesnt know what goes on in the mailroom but will now ask for a check to be issued/mailed to me and will personally call me to confirm once this is done. I asked, what about the Insufficient Funds charge which was entirely the fault of Citibank? He said he can not guarantee this but will try. 

As of now : * I have still not heard back from Citibank XXXX Citibank is still in possession of my initial {$1000.00} security deposit * Citibank is still also in possession of the unauthorized withdrawal of {$1000.00} on XXXX XXXX XXXX XXXX Citibank owes me {$38.00} for the Insufficient Funds charge that was triggered because of their unauthorized withdrawal from my bank account * Citibank has NOT yet issued me the applied for credit card ( at this point I just want my money back! ) XXXX Citibank has not even apologized for the almost month and a half of misery and wasted time it has put me through.

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 explanation