Consumer complaint received 2017-09-08
Company: Flagstar Bank, N.A.
State: MI
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
On Tuesday, XXXX XXXX I walked up to the ATM attached to the Flagstar Bank branch location at XXXX XXXX XXXX XXXX, XXXX XXXX, MI between XXXX and XXXX local time. I attempted to use my XXXX XXXX ATM card to make a cash deposit. Upon inserting the card and providing my PIN, I selected the Cash Deposit option from the touch screen menu. The cash deposit entry point opened and I began inserting bills, which it began to count. After I had inserted some of the funds, the cash deposit entry point began to have some issues with some of the bills, and after a couple minutes, the slot closed, and the ATM went back the main menu. In total, I had inserted {$180.00} into the ATM. I was given no receipt and no transaction number. When I tried to get the slot to open again by using my card I received an error message. So, essentially, the ATM took my funds, allowed me to insert them into the slot, then it started over without processing the transaction. 

I contacted the branch the next day, Wednesday, XXXX XXXX, at XXXX. At first they had not checked on the ATM, then after a second call, they let me know that they had balanced the ATM and they had found the founds. So the associate I spoke with verbally admitted that the {$180.00} had been located. However, I was told by the branch associate that I would need to contact the Flagstar back office to file a dispute in order to recover the funds. 

I went forward and I contact the Flagstar back office on Thursday, XXXX XXXX, at XXXX. They told me that they could not handle my claim and that I would need to contact my own bank, XXXX XXXX, even though the transaction was not processed because in their view even though the transaction did not go through there would have been a trail created associated with debit card at XXXXXXXX XXXX. I was told to contact XXXX XXXX and to file a dispute of the transaction with XXXX, that then they would receive this dispute through the system from XXXX, they would verify the dispute and provide the funds to XXXX, who would deposit the funds in my account. 

Accordingly, I contacted XXXX XXXX, at XXXX. However, the representative I spoke with told me that it was not possible to file a dispute for this ATM issue, as there was no record on XXXX end of the transaction. They could not process my dispute/claim because it wasnt in there system. 

A back and forth of several phone calls persisted between both banks, both refusing to claim responsibility for processing the dispute. Neither XXXX XXXX, nor Flagstar, can tell me what I need to do in order to receive a refund of the {$180.00} dollars that Flagstar has already admitted was taken by the ATM. 

There should be camera footage of me using the ATM, and I did perform a balance inquiry after the deposit system broke, so there should be a record of that as well. 

Finally, today I decided to file a dispute after spending an hour on the phone with an XXXX representative named XXXX who refused again to file the dispute, and told me that he would escalate my claim to executive support. It is still unresolved. 
I would like Flagstar or XXXX to follow the proper procedures to either return the {$180.00} to me physically, or to deposit the funds into my XXXX account.

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