Consumer complaint received 2023-04-19
Company: AXOS FINANCIAL, INC.
State: CA
Product: Checking or savings account
Sub-product: Savings account
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
XXXX I made 10 separate $ XXXX deposits to my Axos account ( $ XXXX total ) from XXXX XXXX . Axos would not allow more than XXXX max per deposit. These funds became available as per XXXX on XX/XX/XXXX. 

XX/XX/XXXX - Axos, unauthorized, debited $ XXXX funds from my Axos account. 

XXXX I contacted Axos in writing & via phone. On a recorded line I was told by " XXXX '', an Axos Customer Service Representative in XXXX that the $ XXXX debit was due to a banking error, that Axos was aware of the error, that other customers were experiencing the same error and not to worry, my money was safe, everything would be corrected by XX/XX/XXXX. I have an email from " XXXX '', confirming the cause of the erroneous debit as an Axos banking error as well as confirming the XXXX XXXXXXXX deposit made on XX/XX/XXXX had cleared & was indeed available funds. 

XXXX Axos did not correct their error. Just the opposite; unauthorized, Axos debited an additional $ XXXX from my Axos account. I repeated the entire process above with a CSR named " XXXX '' ; which included receiving an email from " XXXX '' confirming both the banking error as the cause of Axos ' erroneous, unauthorized $ XXXX debits & that the XXXX XXXXXXXX I deposited on XX/XX/XXXX via ACH Transfer from XXXX to my Axos was available. 

XXXX Axos credited my Axos account XXXX XXXXXXXX but told me the funds were not available until XX/XX/XXXX. I told Axos that was illegal as the funds were deposited on XX/XX/XXXX, were available on XX/XX/XXXX & confirmed available on XX/XX/XXXX / XX/XX/XXXX on a recorded line & in writing by 2 Axos Customer Service Representatives. The fact that Axos made 2 separate banking errors totaling XXXX XXXX did not give them probable cause nor legal authority to hold my funds deposited on XX/XX/XXXX until XX/XX/XXXX. AXOS DID NOT EVER MAKE MY FUNDS AVAILABLE. 

XX/XX/XXXX - Given the seriousness of " Banking errors '' that had occurred on my Axos account, I froze my account and specifically put a " no post debit '' hold on my Axos account. An Axos CSR confirmed my account was frozen/ no post debit verbally on a recorded line as well as in writing via email. " No post debit '' means no debits, returns, reversals, recurring payments ; NO DEBITS OF ANY KIND can be posted to the account. I did this specifically to prevent any further " banking errors '' while I looked for and established a relationship with a new bank. 

XXXX My direct deposit of {$3900.00} made on XX/XX/XXXX was still not showing anywhere on my Axos account. I called & emailed regarding the whereabouts of these missing funds & was told an email would be sent to the research department and someone would be in touch with me in XXXX to 5 business days. 

XX/XX/XXXX - I initiated a second ACH transfer from XXXX XXXX XXXXo Axos for XXXX XXXXXXXX. At this time, before the XXXX XXXXXXXX transfer, my balance was {$350000.00}. 

XX/XX/XXXX - My ACH transfer of $ XXXX made on XX/XX/XXXX had still not been posted. I called and emailed Axos that I wanted to close my account. I have the recorded call and multiple verified emails received by Axos indicating my request to close my Axos account. I was told it was not possible to close my account as the department handling account closures was closed for the day. At this time, before the XXXX XXXXXXXX transfer, my balance was {$350000.00} as evidenced by my Axos bank statement ending XX/XX/XXXX. 

XX/XX/XXXX - Had XXXX, in hospital all day. 

XXXX I again called & emailed Axos & demanded that the XXXX XXXXXXXX deposited on XX/XX/XXXX be made available & that my account be closed. I was told on a recorded line that if I closed my account I would be forfeiting the XXXX XXXXXXXX that was to become available on XX/XX/XXXX that was originally available on XX/XX/XXXX & became unavailable only as a result of Axos making 2 separate banking errors totaling XXXX XXXXXXXX. I demanded to speak to a supervisor or to XXXX XXXX XXXX XXXX the Executive Vice President and Chief Legal Officer at Axos or to the Fraud department or to anyone in the United States of America and was repeatedly told there was no one available except for the Customer Service Representatives in XXXX & that they would escalate my case to the appropriate department ; and someone would be in touch with me in 3-5 business days. 

XX/XX/XXXX - Axos for a second time, without authority debited my Axos account for XXXX XXXXXXXX ( now a total of XXXX XXXXXXXX in embezzled funds from my Axos account by Axos ) which had then resulted in my AXOS ACCOUNT BEING OVERDRAWN BY ( - ) XXXX XXXXXXXX. I immediately called and emailed Axos. I was told on a recorded line & in writing multiple reasons for the ADDITIONAL unauthorized XXXX XXXXXXXX debit : 1 ) Technical difficulties, Axos was working on it, and someone wouldl be in touch with me within 3-5 business days. 

2 ) Banking error. Axos was experiencing ACH transfer errors. Not to worry. Axos was working on repairing the issue. Do not worry, my money was safe. The error would be corrected within 3-5 business days. 

3 ) XXXX XXXX allegedly contacted Axos on XX/XX/XXXX & submitted an ACH Reversal citing XXXX. This is as unlikely as it is suspect as my account with XXXX was closed on XX/XX/XXXX. It seems improbable for XXXX to contact Axos 16 days after an ACH transfer to allegedly initiate a Reversal based on an alleged frozen account that had since been closed. This is suspect given that XX/XX/XXXX was the day the XXXX XXXXXXXX originally deposited on XX/XX/XXXX, erroneously debited on XX/XX/XXXX & XX/XX/XXXX, then redeposited on XX/XX/XXXX was supposed to again, although illegally, become available funds. Moreover, if XXXX was going to reverse my XXXX transfer of XXXX XXXXXXXX on XX/XX/XXXX, they had 48 hours to do so, not 16 days. Additionally, there is no indication nor mention anywhere in the debit entries of " ACH, XXXX, or REVERSE ''. The only description is " XXXX XXXX XXXX ''. In addition to embezzling $ XXXX from my Axos account, these are only 2 of over 17 EFTA REGULATION E VIOLATIONS committed by Axos.

4 ) That the 2 unauthorized debits by Axos on XX/XX/XXXX for XXXX XXXXXXXX & XXXX XXXXXXXX were both transactions that I made. When I called & emailed Axos requesting receipts, merchant names etc all I was told is that both transactions were made in person using my ATM card. Axos never provided me with any documentation of these alleged purchases despite my multiple requests and Axos ' legal obligation to provide me with the requested documents. 

For the next 3 business days, I continued to feverishly call and email Axos to no avail. I demanded verbally on a recorded line and via multiple emails through Axos ' portal that Axos provide me with either the documents to support them debiting my Axos account for XXXX XXXXXXXX and/or the legal authority giving Axos probable cause to debit my Axos account XXXX XXXXXXXX. 

The next day, I received a letter from Axos stating they had chosen to end our banking relationship : " Hello XXXX XXXX, We have confirmed directly with XXXX that all of your disputed transactions did NOT debit your account with them. XXXX rejected all of these transactions due to your account being frozen at the time of presentment. 

We regret to inform you that Axos Bank has decided to end our banking relationship. This is in accordance with the Deposit Account Agreement you accepted when you applied for an account with us. The agreement states, The Bank reserves the right to close your account for any reason, without cause, or notice. 

This decision is final. We understand you may have questions or concerns, but we are unable to provide further information regarding the decision to end our banking relationship. 

Sincerely, The Axos Bank Team '' Axos stated they contacted XXXX and XXXX stated that no funds ever left my XXXX account between XX/XX/XXXX - XX/XX/XXXX to go to my Axos account. Axos provided no written documentation nor name or contact information of whom they allegedly spoke with at XXXX. Axos locked me out of online banking and has {$850000.00} of my money in their possession, XXXX XXXXXXXX of which they have embezzled from my Axos account. Axos has made no mention of any intent to return my funds nor have they provided me with any of the information I've requested, including but not limited to documents named herein. 

This is problematic for multiple reasons, but for this scenario, let 's assume Axos is telling the truth and no funds ever left my XXXX account, hence no funds were credited to my Axos account ; THE FACT THAT AXOS DEBITED MY AXOS ACCOUNT XXXX XXXXXXXX IS NOT DISPUTED. AXOS MUST CREDIT ME THE XXXX XXXXXXXX IT EMBEZZLED. IF NO FUNDS LEFT MY FLUSHING ACCOUNT HENCE NO FUNDS WERE CREDITED TO MY AXOS ACCOUNT AS ALLEGED BY AXOS, THE FACT THAT AXOS DEBITED MY AXOS ACCOUNT XXXX XXXXXXXX WITHOUT LEGAL AUTHORITY DOES NOT CHANGE. 

WHAT POSSIBLE REASON CAN AXOS HAVE FOR MAKING THE FOLLOWING UNAUTHORIZED DEBITS : XX/XX/XXXX - $ XXXX XX/XX/XXXX - $ XXXX XX/XX/XXXX - $ XXXX XX/XX/XXXX - $ XXXX However, the truth of the matter is that funds from XXXX DID in fact leave my XXXX account on XX/XX/XXXX via ACH transfer and were credited to my Axos account on the same day, XX/XX/XXXX. I know this to be true as I have true & correct banking records from XXXX documenting the debits from my XXXX account being credited to my Axos account.

Based on the irrefutable information outlined herein, Axos must wire {$850000.00} plus 5.O3 % interest from XX/XX/XXXX until today 's date to my XXXX account tomorrow XX/XX/XXXX by XXXX XXXX. Contact me directly for wiring instructions. 

The breakdown of {$850000.00} documented below : {$250000.00} - Deposit XX/XX/XXXX {$100000.00} - Deposit- XX/XX/XXXX {$3900.00} - Deposit XX/XX/XXXX {$70.00} - Deposit- XX/XX/XXXX $ XXXX XXXX XX/XX/XXXX XXXX - XX/XX/XXXX, XX/XX/XXXX & XX/XX/XXXX Unauthorized debits/ Embezzled funds by Axos documented herein and on XX/XX/XXXX Axos Statement. 

TOTAL= {$850000.00}

Company response to consumer: Closed with explanation