Consumer complaint received 2020-03-10
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CITIBANK, N.A. (CA)

On XX/XX/XXXX, I noticed a fraudulent ACH transfer from my checking account paid to a XXXX credit card that was not mine for {$6600.00} posted for XX/XX/XXXX. When I contacted Citibank, the representative stated it was probably a glitch in the system and did not suggest that I blocked the account however opened a case. 

On XX/XX/XXXX, another ACH transfer was made for {$21000.00} to a XXXX credit card. At this point, the representative suggested that I placed a block on my account. 

On XX/XX/XXXX, Citibank credited me {$6600.00} and on XX/XX/XXXX credited me {$21000.00}. Per the letter sent, " We have concluded our research and are pleased to inform you that your request for reimbursement has been honored '' On XX/XX/XXXX, I received a call from Citibank Fraud department who informed me that my online banking information has been compromised so they will take action to issue me a new debit card. When I inquired whether my account will need to be closed they said NO. 

Fast forward to XX/XX/XXXX when I realized my account has been blocked. Their letter dated XX/XX/XXXX states " your accounts are now restricted from any debits and certain credits and will be closed within sixty days from the date of this letter ... If there are any funds that belong to you at the time of closure, Citibank will issue you an official check for that balance ... you may visit your local branch or contact us at the number below to determine if you're entitled to the funds sooner than the expected account closure date '' Since then I have called Citibank fraud department multiple times and went to the local branch ( 2 days after the date of the letter ) to attempt to close my account and receive my check but was met with the same brick wall- " this is our policy, there is nothing you can do to access your money or close your account until the investigation is over '' As it stands I have over $ 55K sitting in my accounts that can not be accessed for " up to 60 days ''. I just got my offer accepted for a home and I need the funds ASAP. I can not wait up to 60 days to receive my checks. It is absolutely unacceptable that I have no access to my money for an extended period of time. 

See Regulation E below. Citibank has given me my provisional credit within a week of filing the claim however they turn around and block my entire account and are preventing me from accessing it for up to 60 days. From where I stand as the consumer, if this is a loophole that the banks can perform, how am I really protected as a consumer by this regulation that ensures I have timely access to my funds in the case of a fraud investigation? 




Regulation E 1005.11 Procedures for resolving errors, cited below : ( 1 ) Ten-day period. A financial institution shall investigate promptly and, except as otherwise provided in this paragraph ( c ), shall determine whether an error occurred within 10 business days of receiving a notice of error. The institution shall report the results to the consumer within three business days after completing its investigation. The institution shall correct the error within one business day after determining that an error occurred.

( c ) Time limits and extent of investigation ( 1 ) Ten-day period. A financial institution shall investigate promptly and, except as otherwise provided in this paragraph ( c ), shall determine whether an error occurred within 10 business days of receiving a notice of error. The institution shall report the results to the consumer within three business days after completing its investigation. The institution shall correct the error within one business day after determining that an error occurred.

( 2 ) Forty-five day period. If the financial institution is unable to complete its investigation within 10 business days, the institution may take up to 45 days from receipt of a notice of error to investigate and determine whether an error occurred, provided the institution does the following : ( i ) Provisionally credits the consumer 's account in the amount of the alleged error ( including interest where applicable ) within 10 business days of receiving the error notice. If the financial institution has a reasonable basis for believing that an unauthorized electronic fund transfer has occurred and the institution has satisfied the requirements of 1005.6 ( a ), the institution may withhold a maximum of {$50.00} from the amount credited. An institution need not provisionally credit the consumer 's account if : ( A ) The institution requires but does not receive written confirmation within 10 business days of an oral notice of error ; or ( B ) The alleged error involves an account that is subject to Regulation T of the Board of Governors of the Federal Reserve System ( Securities Credit by Brokers and Dealers, 12 CFR part 220 ) ; ( ii ) Informs the consumer, within two business days after the provisional crediting, of the amount and date of the provisional crediting and gives the consumer full use of the funds during the investigation ;