Consumer complaint received 2020-09-07
Company: CITIBANK, N.A.
State: NM
Product: Checking or savings account
Sub-product: Savings account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
On XX/XX/XXXX, We opened a Citibank Online Accelerated Savings acct. in XXXX, TX. We funded it from our XXXX XXXX XXXX acct via a transfer of funds from the sale of our XXXX residence. We had our mail forwarded to our XXXX, NM home where we were going to stay for several weeks. XX/XX/XXXX, Citibank mailed us debit cards which we did not request so we were not looking for them. The Post office was still sending mail to our mailbox even though we had it  forwarded. The cards were stolen from our mailbox and apparently the PIN code was also stolen. XX/XX/XXXX A thief activated the debit card and made 4 withdrawals from our savings totaling {$1100.00}. We were vacationing in XXXX, NM at the time of the theft. We called Citibank on XX/XX/XXXX, when we noticed the withdrawals. We reported fraud and stolen debit cards to Citibank and had the cards blocked. They gave us a case #. We reported the theft to the US Postal Inspector. The next day, XX/XX/XXXX, the same debit card was used again for 2 more withdrawals totaling {$1300.00}. We called Citibank to report fraud again and they did not show the debit card used in previous day as blocked. They opened another case for the new fraud and blocked the card again. 16 days later on XX/XX/XXXX, we recvd an email from Citibank denying our fraud claim. We called Citibank again and were told the original complaint by us was not logged as fraud, the card not blocked but they would fix report and re-file. They gave us a 3rd case #. 3 days later we recvd an email that the claim was denied since our debit card was used and a PIN was used so we had no defense. How can Citibank deny our claim Under Reg E. We notified them within 24 hours of the fraud and had card blocked. They will not even give us back the money taken after they were to block the card. We were forced to have a debit card which we did not want because they said that is the only way to access our account since it was an online savings. We have since withdrawn most of the money fearing more fraud will happen. Citibank would not allow us to transfer the money out the same we we transferred it in to them. We had to wire it out in several transaction over several days which they charged us a high fee for. We have several questions. How can someone activate a debit card without having to provide any security other than using a stolen debit card and stolen PIN. I have had to answer multiple security question and have codes texted to my phone just to even talk to a Citibank rep but a thief can take my money with no security at all. We have receipts to prove we were in New Mexico at the time of the theft in XXXX. We have our phone call log showing our calls to Citibank. We have emailed correspondence from Citibank showing their mistakes in handling the fraud. We have filed a Police report. All we ask is for Citibank to return our stolen funds as required by REG E. Thank you

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 monetary relief