Complaint sub-issue: Problem making or receiving payments

On or around late XX/XX/2020, my wife and I opened a joint high yield savings account ( Citi Accelerated Savings ) with Citibank, N.A ( a subsidiary of Citigroup ) by speaking to a personal Citibanker over the phone. At no time were we notified by Citibank that the bank operates no physical branches in the State of Texas where my wife and live. 

On XX/XX/2020, Citibank initiated an approved bank to bank transfer of {$3000.00} from my wife and my joint XXXX  XXXX Checking Account to the joint Citi Accelerated Saving Account. The transfer went through without issue. 

On XX/XX/2020, Citibank initiated an approved bank to bank transfer of {$8800.00} from my wife and my joint XXXX  XXXX Checking Account to the joint Citi Accelerated Saving Account. The transfer went through without issue. 

On XX/XX/2020, XXXX XXXX XXXX deposited {$0.00} and {$0.00} into our Citi Accelerated Savings account in order to link our XXXX  XXXX Checking account to our Citi Accelerated Account. This was done upon our authorization and occurred without issue. 

At this point XXXX  and Citibank had conducted four transfers between the XXXX  XXXX Checking Account and the joint Citi Accelerated Savings account. 

On XX/XX/2020, I authorized ( online ) XXXX  to transfer {$5000.00} from the Citi Accelerated Savings account to the XXXX  XXXX Checking account for bill pay. XXXX sent an email stating the bank to bank transfer had been successful. The online XXXX portal showed the {$5000.00} from the Citi account now in the XXXX account. I subsequently paid our bills and logged off. 

On XX/XX/2020, I received notification from XXXX that our XXXX checking account had a large negative balance. Upon logging into the XXXX portal, the website showed Citibank had ( without our authorization and without prior notification ) reversed the {$5000.00} transfer and removed the {$5000.00} from our XXXX checking account. This caused our XXXX account to overdraft and temporarily lock down at a time when we needed the account to cover our credit card bill and accept our employment direct deposit check for the month. 

At no time did Citibank contact my wife or myself concerning the " clawback '' as a Citi customer service representative later described the procedure. We did not receive a phone call, voice message, text message, email, or postal letter concerning the " fraud '' hold on our Citi Accelerated Savings account. Of greater concern - nowhere on the Citi account online portal was there any notice or alert that a hold had been placed on the account. The Citi account online portal looked completely normal. The only reason we knew something was amiss was the overdraft alert from XXXX arriving in the afternoon of XX/XX/XXXX. 

As soon as I received the alert on XX/XX/2020, I called XXXX 's customer support line to inquire about the issue. XXXX informed me the issue lie with Citibank and suggested I get in touch with them to discuss the reversal. 

My first call to Citibank on XX/XX/2020, resulted in the customer service representative transferring me to a dead line. My second call to Citibank resulted in a dropped call in the middle of Citibank 's robotic menu selection. My third call to Citibank resulted in my issue being handled by a different customer service representative than my first call. He informed me there was a " fraud '' hold on our account and that I would need to present my wife and myself at the nearest Citibank physical branch to verify our identity. I asked the customer service representative to please provide me the location of the nearest Citibank via my zip code. The customer service representative told me upon further research, Citibank did not operate any physical branches in the State of Texas. I asked him how then I was suppose to present myself to a physical branch. The customer service representative told me he could not provide additional advice to me. I asked how I was to cover the pending overdraft fee from XXXX if I had no way to unlock my Citi Accelerated Saving Account as no physical branch existed in my state. He told me to " deal with it '' and ended the call on me. Infuriated by the lack of professional of the Citi customer service representative, I called a fourth time and spoke with a supervisor. After conferring with another department, the supervisor suggested I send a letter to the Citi Servicing Center in XXXX XXXX describing the issue and seeking resolution. I would need to wait 5-7 business days for the letter to arrive, an additional 5-7 business days for Citi to look into the issue, and a further 5-7 business days for a response. Alternatively I could drive to XXXX XXXX and present myself to the Servicing Center in person. The supervisor could not guarantee the Servicing Center would admit me due to COVID19 restrictions and this was a four hour drive from our location. Neither of these solutions were or are acceptable. 

On XX/XX/2020, I called the Citi Fraud department directly. The account manager informed me there was no fraud alert on our account. Rather, there was a " Citi hold '' on our account and he could not access information on why or when a hold was placed on the account. He transferred me to the Citi Client Relationship office. The representative was the most helpful by far as she consulting with four different departments to figure out the issue. However, at no point from the Citi Fraud Department to the Citi Client Relationship Department and across multiple staff levels, could anyone at Citibank inform me and my wife when the hold was put in place, for what reason ( s ), and why this would cause  such a drastic measure as clawing back funds from an outside financial institution. The call ended by informing me I should try to use my debit card in 24-48 hours. If I was still having issues, I would need to call Citibank back to inquire about the issue. 

I am submitting this CFPB report to detail multiple failures I have experienced while a client at Citibank including : 1 ) Failing to notify customers about account holds and bank to bank transfer reversals ; 2 ) Causing an overdraft event at an outside linked bank without notifying customers of this action ; 3 ) Failing to explain after multiple calls over multiple days when a hold was placed on our account and for what reasons ; 4 ) Selling financial products requiring physical banking branches to clients in states across the United States with no physical banking branches ; 5 ) The poorest customer service my wife and I have ever received from any industry or company we have been clients of. 

I am also submitting this CFPB report to seek a fair resolution on my issue as Citi bank has given no indication at this point it is willing or able to be transparent about an issue that has caused significant financial disruption in our lives. Citibank at one point singlehandedly lock my wife and I out of two different bank accounts at two different banks at a time when we desperately needed this account money to pay off credit card bills, to buy food for the week, and to cover other living expenses.