Consumer complaint received 2021-05-22
Company: CITIBANK, N.A.
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On or about XX/XX/2021, I opened a checking account with Citibank in response to an incentive offer of money for maintaining a minimum balance for a specific period. I received an email from Citibank indicating the account had been approved and prompting me to initiate a deposit if I had not already done so. 

I was intending to fund the account with {$150000.00} ( minimum deposit required to avoid service fees without direct deposit ) from a XXXX XXXX XXXX savings account, but it was not one of the recognized banks that would have allowed me to use login information to verify that it was my account. Instead, I had to set up trial deposits with a corresponding withdrawal to verify my ownership of the account providing the funding. I also set up mobile/online banking and personal information in addition to signing up for paperless documents. 

On XX/XX/2021 I received the email from Citibank indicating that the trial deposits had been executed, and I verified the amounts with Citibank. Citibank initiated the {$15000.00} withdrawal from XXXX XXXX XXXX and posted the funds on XX/XX/2021. Unfortunately, I had not checked into the withdrawal limits from the XXXX XXXX Bank account, and it exceeded the {$10000.00} per day limit, so XXXX electronically pulled the initial deposit back on XX/XX/2021. 

After looking into the limits, I decided to fund the account with two {$7500.00} deposits from the same account. Citibank did not register the XXXX XXXX XXXX account as an external account when I requested the initial funding transfer, so I again went through the process of verifying the account with trial deposits which was completed on XX/XX/2021. I initiated the first {$7500.00} transfer on that date, but never saw it completed on the mobile app. When I linvestigated it, the online banking indicated the savings account had been " suspended ''. 

Rather than trying to get the account reinstated, I opted to initiate the transfer from my XXXX XXXX XXXX Checking account, so I again went through the trial deposit process for that account. This process was completed between XX/XX/XXXX and XX/XX/2021. Once the bank account was approved as a linked external account, I initiated a {$10000.00} transfer to the Citibank account. 

On XX/XX/2021, I received notification from Credit Karma that the {$10000.00} withdrawal had been executed, so I logged on to my Citi Mobile app to verify that the funds transfer was being executed. When I logged on, the status of the account showed " closed ''. 

I contacted Citibank through the chat feature and was informed that I needed to speak to the fraud division regarding the status of the account. I had an approximately hour long, occasionally heated conversation with the fraud division, including a conversation with a supervisor, during which I was informed that the account was being closed based on suspected fraud and I would receive a letter informing me of the reason behind the decision and explaining how I had violated the customer agreement. I was insistent that the funds needed to be returned immediately through an electronic transfer, just as they had been transferred to the account. The supervisor said all she could do was to " send an email '' to escalate my complaint, but I would be required to call back the next day because the recipient of the email would not contact me. 

The {$10000.00} had not actually posted, so I opted to wait before calling back. The funds posted on XX/XX/2021 at which time the account status on the mobile app changed from " closed '' to " blocked ''. I thought that since the account had been funded, perhaps the bank was just holding the funds for a few days to ensure that nothing suspicious had happened, so I opted to wait. 

On XX/XX/2021, a full eight days after the funds posted, I again got on the chat and was once again informed that I would need to speak to the fraud division. I called again and after two transfers, despite following the prompts the online representative provided, I finally arrived at the correct department. That representative read a script stating the account was under review for closure and that any remaining funds would be returned by check in 30 to 60 days. I told her that was unacceptable and asked to speak to a supervisor. He said the exact same thing and refused to allow me to speak to any individual above him. 

Returning the funds by check defies logic. If Citibank legitimately believes the funding of this account was fraudulent, why would they opt to return the funds after a review to me by check. It is much more logical to return the funds to the account from which they were withdrawn electronically. The suspicion of fraud also defies logic considering I have verified the accounts through trial deposits three times on two different external accounts. 

Citibank has done one of two things here. Either they decided to close my account and then initiated a transfer of {$10000.00} from my external bank, or they initiated a transfer of {$10000.00} from my external bank and then decided to close my account. Either way, they have withdrawn {$10000.00} from my account and are denying me access to it indefinitely while they review the account for closure. The final supervisor said the reviews generally take 30 to 60 days, but he refused to provide any specific time frame for me to receive my {$10000.00}. This is not acceptable. 

If they suspect the funds were withdrawn fraudulently, then they should be able to return them to the bank from which they were taken through an electronic transfer. It is unacceptable for Citibank to hold my money and profit from it indefinitely. I am not a wealthy person, and {$10000.00} represents a large percent of my annual income. Citibank has effectively stolen this money from me, will generate profits off it for an indefinite amount of time, and then presumably return the funds to me via check while still making profit off the deposit while the check is outstanding.

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