Consumer complaint received 2022-09-15
Company: CITIBANK, N.A.
State: IL
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem caused by your funds being low
Sub-issue: Overdrafts and overdraft fees

Complaint:
I'm filing this complaint as my case with CitiBank wasn't handled correctly. My son was a victim of identity theft, in which CitiBank confirmed this. Please see the attachments. They withdrew {$1500.00} from his account in which I was joint owner on the account as well as did a {$4700.00} wire transfer. CitiBank responded and stated that he was scammed and unfortunately there's nothing they could do. Well my attorney gave me this literature and told me to try to get this corrected before filing a lawsuit against CitiBank. 

Please look below, because according to CFPB 1005.6 Liability of consumer for unauthorized transfers. this is covered and we should only be liable for {$50.00} ( a ) Conditions for liability. A consumer may be held liable, within the limitations described in paragraph ( b ) of this section, for an unauthorized electronic fund transfer involving the consumer 's account only if the financial institution has provided the disclosures required by 1005.7 ( b ) ( 1 ), ( 2 ), and ( 3 ). If the unauthorized transfer involved an access device, it must be an accepted access device and the financial institution must have provided a means to identify the consumer to whom it was issued. 

( b ) Limitations on amount of liability. A consumer 's liability for an unauthorized electronic fund transfer or a series of related unauthorized transfers shall be determined as follows : 1. Application of liability provisions. There are three possible tiers of consumer liability for unauthorized EFTs depending on the situation. A consumer may be liable for : ( 1 ) up to {$50.00} ; ( 2 ) up to {$500.00} ; or ( 3 ) an unlimited amount depending on when the unauthorized EFT occurs. More than one tier may apply to a given situation because each corresponds to a different ( sometimes overlapping ) time period or set of conditions.

2. Consumer negligence. Negligence by the consumer can not be used as the basis for imposing greater liability than is permissible under Regulation E. Thus, consumer behavior that may constitute negligence under state law, such as writing the PIN on a debit card or on a piece of paper kept with the card, does not affect the consumer 's liability for unauthorized transfers. ( However, refer to comment 2 ( m ) -2 regarding termination of the authority of given by the consumer to another person. ) 3. Limits on liability. The extent of the consumer 's liability is determined solely by the consumer 's promptness in reporting the loss or theft of an access device. Similarly, no agreement between the consumer and an institution may impose greater liability on the consumer for an unauthorized transfer than the limits provided in.

( 1 ) Timely notice given. If the consumer notifies the financial institution within two business days after learning of the loss or theft of the access device, the consumer 's liability shall not exceed the lesser of {$50.00} or the amount of unauthorized transfers that occur before notice to the financial institution.

I called you guys immediately when we noticed the account was negative and the next day I went into a branch and sat for 2 hours.

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