Consumer complaint received 2023-08-08
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem making or receiving payments
Company: WEBSTER BANK, NATIONAL ASSOCIATION (CT)

We are writing to formally raise a significant concern regarding an unauthorized delay in an external funds transfer, which resulted in a measurable financial loss and raises questions of potential impropriety. The incident has highlighted important discrepancies between the institution 's advertised service standards and the actual customer experience, underscoring the need for immediate corrective action. We have been customers for over thirty years. 
On XX/XX/2023, we initiated a {$60000.00} transfer from our Webster account to our XXXX XXXX XXXX account, drawn by the promise of XXXX XXXX ' 4.3 % interest rate. The bank 's stated funds availability policy, accessible through this link XXXX XXXX XXXX XXXX XXXX assures same-day availability for transfers. However, this assurance was shattered on XX/XX/2023, when I received an email stating : " For security reasons, your external transfer request from Webster Bank, XXXX account to XXXX XXXX XXXX XXXX, Savings account has been stopped. 
As a policy, we need to review the transaction. Based on the results of that review, we will either cancel the transaction or the funds may take a little longer to reach the destination account. We will notify you of the status of the transaction by email. Thank you, Webster Bank '' This stoppage came with no clear explanation, no reference to any specific policy, and no guidance on how to proceed or the expected timeline for resolution. 
In response to this concerning development, we promptly engaged with Webster Bank 's customer service seeking clarification and resolution. Unfortunately, my efforts were met with a disheartening lack of transparency, accountability, and urgency. Over the course of calling each business day and in-person visits to local branches on XX/XX/XXXX and XX/XX/XXXX, we encountered significant challenges in obtaining clear answers, status updates, or a swift resolution to the transfer issue. Furthermore, even though promised, we never received any sort of personal follow up or call backs that representatives had promised. Additionally, it is important to highlight the dissonance between Webster Bank 's declared values and the actual customer experience. The slogans etched on the glass offices, such as " We Earn Trust thru Ethical Behavior '' and " We Take Personal Responsibility for Meeting Our Customers Needs, '' stand in stark contrast to the reality of this situation. 

Finally, on XX/XX/XXXX, we were notified that the funds transfer had been processed and released, allowing the transfer to proceed. However, this resolution does not negate the lack of transparency and accountability that marred the resolution process, nor does it mitigate the financial loss I incurred due to the unauthorized delay. 

We find it deeply troubling that a reputable financial institution would choose to arbitrarily withhold access to customer funds without clear justification or proper communication. This incident raises serious questions about transparency, adherence to advertised service standards, and potential violations of the trust between financial institutions and their customers. 
In light of the unauthorized delay, which resulted in a financial loss of approximately {$50.00} in unearned interest, we formally request the following actions be taken : 1. A comprehensive investigation into the unauthorized delay of the funds transfer, including a clear explanation for the suspension and subsequent release of the transaction. 
2. Disclosure of the specific policy or procedure that justified the suspension of the funds transfer, as referenced in the initial email communication. 
3. A formal acknowledgment of the discrepancy between the " Funds Availability Policy '' and the actual customer experience, accompanied by concrete steps to ensure accurate representation of services to customers. 
4. Full and immediate compensation for the unearned interest resulting from the unauthorized transfer delay, consistent with Webster Bank 's commitment to equitable treatment of its customers. 
5. An assurance of enhanced transparency, communication, and accountability in handling similar issues in the future, aligning with industry best practices and regulatory standards. 
Furthermore, we would like to draw your attention to the provisions outlined in the United States Code, specifically 12 U.S. Code 1818, which addresses the potential imposition of civil money penalties for violations. While we hope to avoid such an outcome, it is crucial for Webster Bank to address these concerns promptly to maintain customer trust and regulatory compliance.

Thank you for your immediate attention to this formal complaint. We anticipate a prompt and substantive response detailing the actions Webster Bank intends to take to address these concerns and ensure a more transparent and accountable approach to customer service. 
Sincerely, XXXX XXXX XXXX XXXX