Consumer complaint received 2020-04-27
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Banking errors
Company: FULTON FINANCIAL CORPORATION (MD)

Consumer Financial Protection Bureau Request XXXX Due to errors made by XXXX XXXX XXXX  in XXXX and XXXX I have lost thousands of dollars and have the potential to lose hundreds of thousands of dollars. 

XXXX XXXX XXXX Errors In XX/XX/XXXX I was cleaning in our basement and found a box belonging to my Father ( who passed away in XXXX in Michigan ) that I did not know I even had. Much to my surprise, inside I found silver coins and US Savings Bonds. I was thrilled to find the Bonds, but at the same time was cautious because I had no recollection of them and did not know why there were there, if they were any good ... 
In XX/XX/XXXX, my husband and I brought the Bonds to XXXX XXXX XXXX ( now Fulton Financial ) to inquire whether the bonds were still valid. I, with much  excitement and caution, explained how I found the Bonds and that I had no recollection of them and wanted to know if they were good. The teller at the Bank entered each individual Bond number into her computer, and only after completing this search did the teller inform us that the Bonds were valid and could be redeemed. On XX/XX/XXXX and XX/XX/XXXX, we redeemed the Bonds for a total amount of {$49000.00}. Copies of the original Bonds are attached. Exhibit a. 
On XX/XX/XXXX, my husband and I again brought Bonds to the Bank to inquire whether the Bonds were still valid. As before, the Bank investigated the bonds and informed us that the Bonds were valid and could be redeemed. On this occasion, we redeemed Bonds in the amount of {$32000.00}. Copies of the original Bonds are attached. Exhibit a. 

The Treasury Situation On XX/XX/XXXX, we received an invoice from Treasury stating that I owed Treasury {$49000.00}. 
According to Treasury, the redeemed Bonds were previously reported as lost in XXXX, therefore the Bank disbursed money for the bonds in error. 
I never received payment for the Bonds at any time prior to XXXX. I disputed the invoice as many times as permitted, Treasury rejected my claims and sought payment from me for both the {$49000.00} ( now increased to {$49000.00} with interest ) amount and the additional {$32000.00} amount. 
During the Treasury appeal process I learned that in XXXX ( up until that time I had no recollection of such forms ), I had filled out forms reporting all the cashed Bonds to be lost and asked to be sent a check for the total value at that time for the Bonds. I asked Treasury for evidence of receipt of payment by me. Treasury is unable to produce a cashed check, but sent me a fragment of a general ledger that they assert is evidence that a check was issued to me in the amount of XXXX. I have no record or recollection of receiving such check and Treasury can not provide proof of receipt by me. Exhibit e. 
I was unsuccessful in my various appeals and was forced into a repayment arrangement with Treasury. If I did not enter into the payment ( total amount owed, plus interest of 1 %, with monthly payments of {$200.00} with a balloon payment due on XXXX ) the matter would have been turned over to a collection agency, the amount due increased by 30 % and my credit ruined. Exhibits b and c. 
When I first signed the payment arrangements, I added a codicil stating, " This Agreement shall not constitute an admission of any allegations against any Parties to this Agreement. The Parties have entered into this Agreement in lieu of pursuing claims which could potentially damage the credit or reputation of Ms. XXXX. As such, the execution of this Agreement shall not be considered an admission of liability, wrongdoing, or anything improper. '' Treasury would not accept any alterations to the contract, so I signed new payment arrangements. 

My requests of XXXX XXXX XXXX  XXXX - My attorney sent a demand letter to the Bank regarding the errors made in cashing the Bonds. A cut and paste draft letter follows - I was unable to find the original. Please ignore references to Exhibits. 
" This firm represents xxxxxxx in relation to a former dispute between xxxxx and the United States Department of Treasury ( Treasury ). I am writing to you in regards to certain Treasury bonds ( the Bonds ) which XXXX brought to XXXX XXXX XXXX, and which XXXX XXXX XXXX disbursed into xxxxx account. Due to an error made by XXXX XXXX XXXX, Treasury now seeks payment from xxxxxx for the Bonds. XXXX hereby demands that XXXX XXXX XXXX assume responsibility for the money owed to Treasury for its error, to make payment of all money due and owing to Treasury in regards to the Bonds, and to reimburse xxxxxx for legal expenses and other costs incurred in disputing any allegation of wrongdoing on her behalf. 

In XX/XX/XXXX, xxxxx brought the Bonds to XXXX XXXX XXXX  to inquire whether the bonds were still valid. The teller at XXXX XXXX XXXX entered each individual Bond number into a database, and only after completing this search did the teller inform xxxx that the Bonds were valid and could be redeemed. On XX/XX/XXXX and XX/XX/XXXX, xxxxxxx redeemed the Bonds for a total amount of {$49000.00}. Copies of the original Bonds are attached for reference as Exhibit A. 

Subsequently, on XX/XX/XXXX, xxxxxx again brought Bonds to XXXX XXXX XXXX  to inquire whether the Bonds were still valid. As before, XXXX XXXX XXXX   investigated the Bonds and informed xxxxxxxx that the Bonds were valid and could be redeemed. On this occasion, xxxxxx redeemed Bonds in the amount of {$32000.00}. A copy of the original receipt from XXXX XXXX XXXX for the Bonds redeemed on XX/XX/XXXX is attached for reference as Exhibit B. 

On XX/XX/XXXX, xxxxxx received an invoice from Treasury the Invoice ), stating that she owed Treasury {$49000.00}. A copy of the Treasury invoice is attached for reference as Exhibit C. According to Treasury, the redeemed Bonds were previously reported as lost in XXXX, and XXXX XXXX XXXX  disbursed money for the Bonds in error. 

XXXX never received payment for the Bonds at any time prior to XXXX. However, despite xxxxx disputing the Invoice, Treasury has rejected xxxxx claim and now seeks payment from xxxxx for both the {$49000.00} ( now increased to {$49000.00} with interest ) amount and the additional {$32000.00} amount. 

xxxxxx has negotiated a payment plan with Treasury. However, xxxxx denies any liability to Treasury, as the wronged party, and should not be made to repay Treasury for Bonds she had never redeemed. XXXX XXXX XXXX should have notified xxxxx of any issues with the Bonds it identified, and now should resolve the confusion over the Bonds with Treasury. 

As such, demand is hereby made that XXXX XXXX XXXX assume all liability to Treasury for the Bonds and for money claimed to be due and owing under the Invoice, in the total amount of {$81000.00}. Additionally, xxxxxx hereby demands reimbursement by XXXX XXXX XXXX of all legal fees incurred by xxxxx in disputing this error made by XXXX XXXX XXXX. 

There was correspondence between my attorney and the Bank and on XXXX the Bank sent a letter stating, since I had negotiated a payment plan with Treasury, I view Ms. XXXX claims against XXXX XXXX XXXX as waived. 

We did not pursue the next step, litigation against the Bank, because we could not afford it. It was estimated that attorney fees, subpoenas and other items necessary to litigation could be over {$20000.00}. Such amount not being in our budget. It seems as if we are boxed in whatever direction we go. 

After such time I pursued other avenues for litigation but found 1 of 2 things : Litigation was not going to be in our budget and/or no one had ever heard of such a situation. 

Finally a paralegal friend recommended I contact the Bureau. Please help me!!!!! 


XXXX - On my own I have researched and tried to recoup our loss. This year, I wrote to the Bank asking to have the 1099s for XXXX and XXXX from the Bank showing the interest on the cashed bonds reissued to show XXXX. The plan then was to have my accountant file amended tax returns. The Bank denied the request, I appealed the denial and it was denied again. Exhibit d - XXXX letter to the Bank, XXXX response from the Bank, XXXX appeal letter to the Bank and XXXX denial response from the Bank. 

In essence the Bank stated they, investigated the claims in your letter and has not found any information to suggest that a bank employee confirmed prior to payment that the bonds were not previously reported to Treasury as lost. 

To me, this is an admission of the errors. I trusted the Bank to give me an accurate response under any circumstance. 


My and my husband 's personal circumstances XXXX is XXXX years old, retired from the xxxxxx and the recipient of the XXXX XXXX. As a result of injuries in xxxxxxx, and age, he is unable to work. I am XXXX years old, retired from an XXXX  career and take care of xxx and our home. He has some XXXX and XXXX   XXXX  so I am home except for church and running errands. We still have a mortgage, home equity loan and other normal day to day expenses. The money from the cashed Bonds was used for day to day living expenses. 
The situation with Treasury created by the Banks errors has created untold hardship and fear and will increase that hardship and fear if we have to pay Treasury approximately {$82000.00} on XXXX. 






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