Consumer complaint received 2022-01-17
Company: CAPITAL ONE FINANCIAL CORPORATION
State: OK
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
I am writing in hopes of getting some help in dealing with Capital One Bank and a deposit I made with this bank. 
In XXXX of XXXX I had a small fire in my kitchen. I filed a claim with my insurance company, and they issued an initial check in the amount of {$2800.00} drawn on XXXX XXXX account at XXXXXXXX XXXX XXXX XXXX XXXX. The check was made payable to myself, my wife, a mortgage company I do not have a mortgage with and my second mortgage company. The check was dated XX/XX/XXXX. I initially tried to contact the adjuster on the claim to get the payees corrected but did not have any luck ( I later found out that he had left the company between the time he was assigned my claim and when I started trying to contact him ). I tried for two weeks to contact someone at the incorrect mortgage company with no luck I could only get a hold of their sales department and any calls to any other numbers were not returned. I did not have use of my kitchen and so on the 1st of XXXX I decided to deposit the check into my account with Capital One with just mine and my wifes endorsement on it. 
The next day I received a notice from Capital One saying that they were going to hold the deposit for 30 days. I accepted this as I was aware of the risk and decided to wait the 30 days. After the 30 days expired, I contacted the bank because the hold was still not released. I was told that they would not release the funds without authorization from the issuing bank. I asked them if they would just reject the deposit and send me the check back then, and they said that they couldnt do that now because too much time had passed. If I had been aware this was going to happen when they initially placed the hold, I would have asked for the deposit back then but was not informed at that time. 
After a few calls to the bank trying to get his resolved I called the insurance company. They said there was nothing they could do as the check was already cleared through their bank and that there is no reason Capital One should be holding the funds. 
In the middle of XXXX, I decided to file a complaint with the Consumer Federal Protection Bureau hoping to escalate this issue with Capital One Bank. They responded a few days letter ( response attached ) stating they could not release the funds because the remitter would not clear them to do so as the check could be reported as unauthorized for up to 2 years by the other named parties. 
I contacted XXXX and explained again where I was, and they provided me with a letter from a claims supervisor ( attached ) requesting that Capital One return the funds to XXXX so that they can reissue payment to the correct payees. I provided this to Capital One and received no response or return calls, so I again filed a follow up complaint with the CFPB as this seemed to work to get them to respond to me. After filing the complaint Capital One bank did respond to me in late XXXX saying that the letter was not sufficient and that they would need a Hold Harmless to release the funds. 
I contacted XXXX and they provided me with a Hold Harmless signed by XXXX XXXX ( attached ). I again tried to get this to Capital One Bank but again could not get them to respond or return phone calls, so I again filed a new complaint with the CFPB. Again, after that Capital One Bank started responding to me, this time noting I had only left 2 voice mails and that is why they did not call me before my complaint. The phone tree at Capital One is someone time consuming to navigate, and I did not feel like I needed to continue to leave voice mails when my previous ones were not being returned. 
Capital One did respond to this complaint on XX/XX/XXXX they said two things, one of which is that they would not accept Shelters Hold Harmless and the other that they had ended their banking relationship with me ( attached ) which is news to me however this notice was mailed to a different address than the other addresses and a address I have not used in over 6 years. I can tell you they continue to deposit interest into the account each month which I would think are not actions consistent with a closed account. Outside this response to the complaint, I have still not received a formal notice they have closed my account. 
On Monday the XXXX of XXXX I received a Hold Harmless from the bank and forwarded to Capital One. As of right now I have still not heard back from Capital One. 
I have contacted a few attorneys for legal advice and have been told that Capital One is clearly in violation of Regulation CC on handling deposits ( attached ) and could potentially be liable for damages as well. I would like to avoid litigating this, I still, 8 months, later do not have full use of my kitchen and would much rather Capital One just return the funds to the bank and be done with this and them. Additionally, while Im sure Capital One has plenty of resources to litigate this matter I do not want to have to give a portion of the money I need to fix my kitchen to an attorney especially on a matter that is so cut and dry.

At this point the check has sat in my account at Capital One since XX/XX/XXXX. I have provided them with a letter from Shelter asking Capital One to release the funds, a Hold Harmless from Shelter asking the same and a Hold Harmless from XXXXXXXX XXXX  XXXX XXXX XXXX asking the same. I would like to make sure the point it made Im not requesting the funds be released to me simply returned to the issuing bank. 
At this point I am at a loss of what to do next outside of filing one more complaint trying to draw some attention to this matte. I am also forwarding a copy of this complaint to the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX.

Company response to consumer: Closed with explanation