Consumer complaint received 2023-03-24
Product: Checking or savings account — Savings account
Issue: Managing an account — Deposits and withdrawals
Company: HUNTINGTON NATIONAL BANK, THE (OH)

Dear CFPB, Im writing regarding what we believe is predatory activity on our sons account, which we are joint owners. 

We learned that the pandemic brought on unexpected challenges for our son, XXXX. He is a college student that lost his job, his car broke down and he was evicted from his campus apartment. He then turned to drugs and alcohol and is now an addict. 
In XX/XX/XXXX, we started getting calls from Huntingtons DDA collections department. we explained that it was our sons account, and we would contact him immediately. We reviewed the XX/XX/XXXX and XX/XX/XXXX account statements and found that his account had been negative since XX/XX/XXXX. 
We called XXXX and made him call the DDA Collections Department. After that call, he told us that he had until XX/XX/XXXX to pay {$70.00}. The Collections department will then waive {$70.00} in overdraft fees, and this would then bring the account to a XXXX balance. 

We told him that he needs to make that payment and once the overdraft fees are waived, we were closing the account. XX/XX/XXXX, was a Friday, so our intentions were to go to the XXXX XXXX banking office on the following Monday to close the account ( This location is 2 minutes from our home and they are closed on XXXX ). 

On Monday XX/XX/XXXX, we reviewed the account and found that his account was negative {$330.00}. We then pulled up the recent account history and found, he talked a friend into paying {$70.00} to his account on Thursday XX/XX/XXXX. The account was brought to zero when the XXXX collections Department waived the fees as they promised. He changed the account overdraft election to OPT IN and was then able to make multiple non-HNB ATM withdrawals over the weekend. In fact, Huntington continued to allow withdrawals to the point that his account was negative {$1100.00}.

I need to know how this can be possible. How does a bank allow a customer with a history of very low or negative balances withdrawal over {$1000.00} in cash?

Our understanding of Huntingtons 24-hour grace offered, is the system reviews recent account activity and this is what determines how much you can overdraw the account. In this case, his account was negative for two months, and had previous activity with Payday Loans. To allow this type of activity is predatory to a college student. If he is unable to pay back {$70.00}, how will he be able to pay {$1100.00}? 

The account was charged off with a balanced owed. Since we are listed on the account as joint authorized users, we agreed to pay the settlement amount to Huntington. This settlement agreement showed that we and Huntington were aware of Chases addiction and all were involved in a resolution of the situation. 

We made an arrangement with XXXX that he would pay us back after he was released from rehab, when he obtained a new job. He would do this by making deposits into his savings account. This is why we left this Savings account open. 

By seeing this situation occur again, it raises some flags, that not only is this predatory activity towards a college student, but it may qualify as an ADA violation. 

Our son has attended a detox center, then XXXX XXXX XXXX, followed by a two months stay at a supervised housing community. When that was completed, he found a job that he was happy with and it appeared he was on the right path. 

He received a paycheck in the amount of {$1000.00}. He deposited it into the savings account on XX/XX/XXXX. Due to his history and low account balance, Huntington put a 5 day hold on the check. This shows that Huntington knew of his previous history, so they wanted to make sure that the check was valid. After the five-day period, Huntington allowed him to not only withdraw the {$1000.00}, but also multiple non-Huntington ATM withdrawals for an additional {$1000.00}. We discovered this when my husband started getting collection emails and calls. 

We need to know how is this not predatory activity? On two accounts that had a XXXX to negative balances, Huntington allowed withdrawals that overdrew the account by more than {$1000.00}? 

Our next question that we need answered, when we dealt with the checking account issue, we were offered overdraft fee refunds and eventually a settlement. The latest issue on the savings account, we were not offered fee waivers. Instead, they chose to enact a clause in the account disclosures and Involuntary Offset two of my husbands accounts ( One of the accounts that was debited, they took every penny. This account he uses for his non-profit organization. He is on the board of directors for the XXXX Ohio XXXX XXXX and XXXX XXXX ). We need to know why this was handled differently? 

We believe that this may qualify as na ADA concern. XXXX XXXX, The Americans with Disabilities Act ( ADA ) ensures that people with XXXX have the same rights as everyone else. This includes people with addiction to alcohol and people in recovery from opioid and other drugs. 

Addiction is generally considered a XXXX because it is an impairment that effects the brain and neurological functions. Addicts of alcohol and drugs are impaired from thinking in terms of right and wrong. It also states, for people with an addition to opioids and other drugs, the ADA only protects a person in recovery who is no longer engaging in the illegal use of drugs. XXXX has had tests to verify that he is not currently using drugs. 

In XX/XX/XXXX, we filed an escalated complaint in writing addressed to XXXX XXXX through Huntingtons customer service. This was reviewed by HNB employee XXXX XXXX. My husband received a call from her, but the questions were not answered. A copy of this letter is attached. 

On XX/XX/XXXX, we placed a call to the Huntington DDA collections department to discuss the involuntary offsets. The representative stated that we would receive a return call from a manager by the end of day. As of the date on this letter, we have not received a return call.

We have been customers of Huntington bank for over 30 years. It is an ongoing struggle to care for someone with a XXXX and addiction. Huntington is enabling customers by allowing them to withdraw funds that they know the customer has no ability to repay. All so they can get fee income. 

Our desired resolution is to receive the answers to our above questions, what steps is Huntington taking to avoid this type of repetitive behavior and a return of the involuntary offsets. 
Thank you.