Consumer complaint received 2024-11-02
Product: Checking or savings account — Savings account
Issue: Problem with a lender or other company charging your account — Money was taken from your account on the wrong day or for the wrong amount
Company: CITIBANK, N.A. (OH)

Subject : Unauthorized Federal Withholding Tax Deductions Dear Consumer Financial Protection Bureau, I am writing to file a formal complaint against Citibank for unauthorized deductions of federal withholding taxes from my Citi Accelerate Savings Account. Account numberXXXX. 
I have been a Citibank customer for approximately five years. Recently, I noticed that Citibank has been deducting federal withholding taxes from my savings account for the past two years ( They charged federal withholding tax monthly, based on my remaining balance, from XX/XX/XXXX, to XX/XX/XXXX according to mobile app. The amount deducted was calculated as a percentage of my remaining balance at the end of each month ). However, considering the account 's age, it's highly likely that these unauthorized deductions may have been occurring since the account 's inception.

When I inquired about these deductions, a Citibank representative informed me that the bank had received a C-notice from the IRS, which mandated these deductions. However, after contacting the IRS, I was assured that no such notice had been issued to Citibank. The IRS representatives from the individual tax account specialist, tax law, federal backup withholding and balance due departments confirmed that my account was in good standing and that no federal withholding taxes were due. The IRS representative also told me that they would send a notice to me in the letter if necessary but not to the bank which I have never received such a notice. ( Also, I have 7 savings accounts and only Citibank charges me monthly federal withholding tax ) Despite providing evidence to Citibank that the deductions were unwarranted, the bank has failed to rectify the situation. I have requested a copy of the C-notice to substantiate their claim, but Citibank has been unresponsive. Additionally, a Citibank representative promised to reverse the fees, but as of today, no refunds have been processed.

I believe that Citibank has wrongfully deducted these fees and is in violation of consumer protection laws. I am seeking a full refund of all unauthorized deductions, including any interest lost as a result of these deductions.

I kindly request that the Consumer Financial Protection Bureau investigate this matter and take appropriate action against Citibank.

Resolution : I expect Citibank to : * Full Refund : Immediately refund all unauthorized federal withholding tax deductions, including those that may have occurred within the past five years.

* Interest Compensation : Compensate me for any interest lost due to these unauthorized deductions.

* Transparent Explanation : Provide a clear and detailed explanation for the unauthorized deductions.

* Account Review : Conduct a thorough review of my account to ensure no further errors occur.

* Prompt Resolution : Immediately process the promised fee reversals.

Thank you for your time and attention to this matter. Sincerely.