Consumer complaint received 2021-10-06
Company: REGIONS FINANCIAL CORPORATION
State: IL
Product: Checking or savings account
Sub-product: Checking account
Issue: Opening an account
Sub-issue: Account opened as a result of fraud

Complaint:
I recently moved within XXXX  and received forwarded mail from my old address that included a bank statement for an account I neither applied for nor authorized. 

The bank is Regions Bank, XXXX XXXX XXXX XXXX, XXXX, IL XXXX. The bank statement covered the cycle from XX/XX/2021 through XX/XX/2021. The statement identifies the account as " Lifegreen Checking For Students '', with an Account # XXXX. 

It has a beginning balance of - {$4.00}, Deposits & Credits {$4.00}, and an Ending Balance {$0.00}. 

I contacted the Bank Customer Service department and spoke with " XXXX '', who after a lengthy conversation, was able to verify that indeed an account was created under my name with the account number per the Statement. Further she agreed to close the account but could not provide any other information. She then transferred me to the Bank Fraud Department and I spoke with " XXXX ''. 

XXXX was unpleasant, not at all helpful, threatened to disconnect me, and insisted that what I had been told by Customer Service was not only incorrect but that in order for me to close the account, I had to submit an affidavit to the nearest Bank Branch. That branch is XXXX miles away in XXXX. 

Next, I called the Regions Bank in XXXX and asked for the Bank Manager. The man who answered my call identified himself as the Manager. His name is XXXX XXXX XXXX. 

I explained the situation to XXXX who asked questions and agreed the account should be closed but went on to indicate several surprising and alarming things. 

First, he was aware of a high volume of fraudulent account opening activities like the one which affected me, that have been ongoing over " the past several months ''. 

Second, the Bank was not only aware of this fraudulent activity but had acted to close the accounts including my fraudulent account. The four dollars in and out of the account was what the Manager described as a " charge off ''. Furthermore, in order for me to clear my credit, he suggested I needed to complete an Affidavit which he later sent via email.

Third, the Manager indicated that to his knowledge and according to information he was given, these fraudulent accounts were created online. 

I have several complaints : 1. The bank did not notify me of the fraud they were clearly aware of. I believe this to be a serious violation of my rights.

2. According to the bank employee, these fraudulent activities have been ongoing for months and they did nothing to stop my identity or credit from being compromised. Had they done so, the fraudulent activity should by now have been mitigated.

3. The bank should bear all responsibility for damages for fraud they were and are aware of, including the four dollars charge off, and any misreporting to the Credit Bureaus. The Bank is responsible to investigate and remove any and all incorrect information.

4. The Bank is by their process open to violations of the Anti Money Laundering regulations and needs to bear the consequences for any violations.

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