Consumer complaint received 2024-07-01
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Managing an account — Problem with renewal
Company: CITIZENS FINANCIAL GROUP, INC. (MA)

To Whom It May Concern, I am writing to formally lodge a complaint against XXXX XXXX, XXXX ID # XXXX, the branch manager at Citizens Bank located at XXXX XXXX XXXX, NY. This complaint concerns a violation of U.S. government banking laws regarding the automatic renewal terms of a Certificate of Deposit ( CD ), resulting in a significant financial loss of {$3000.00} in interest for the account holder, XXXX XXXX XXXX. 
Details of the Complaint : 1. CD Information : o Account Holder : XXXX XXXX XXXX XXXX Account Number : XXXX o CD Term : 10 months o Interest Rate ( APY ) : 5.5 % o Amount : {$240000.00} o Issue Date : XX/XX/XXXX o Maturity Date : XX/XX/XXXX XXXX. Policy Reference : o According to Citizens Bank 's brochure ( page XXXX ), " each renewal term will be the same as the original term '' and " your CD account automatically renews at maturity. '' XXXX. Incident Description : o XXXX XXXX XXXX, aged XXXX, a XXXX American citizen living temporarily in XXXX, XXXX, was unable to return to New York due to health issues. He attempted to renew his CD by calling the bank at XXXX but received no response. He then emailed XXXX XXXX at XXXX but received no response. 
o XXXX XXXX asked his friend, XXXX XXXX, who resides in NY, to call XXXX XXXX regarding the renewal matter. XXXX XXXX informed XXXX XXXX that the renewed XXXX CD rate was 4.5 %. Although an XXXX CD was available at a 5 % rate, it required the account holder to visit the bank in person, which was not feasible for XXXX XXXX. 
o Consequently, XXXX XXXX assumed the renewed rate would be 4.5 % based on Citizens Banks brochure guidelines and the communication between XXXX XXXX and XXXX XXXX. 
o XXXX XX/XX/XXXX, XXXX XXXX traveled to New York and visited the branch. XXXX XXXX then informed him that the renewal rate was 1.25 % because he did not go to the Citizens bank counter in person. This resulted in a significant decrease in monthly interest from approximately {$1100.00} to around {$250.00}, causing a monthly loss of approximately {$900.00}. 
o XXXX XXXX disputed this rate with XXXX XXXX but received no any resolution. XXXX XXXX decided to close CD account. Then XXXX XXXX required a penalty with more {$800.00} and XXXX XXXX said he would sue the bank. XXXX XXXX eventually waived the penalty. With the emotions of dissatisfied, disappointed and angry, XXXX XXXX had to close all his accounts, receiving {$250000.00} ( {$250000.00} from the CD account and {$500.00} from the check account ). 
o XXXX XXXX holds similar CD accounts with XXXXXXXX XXXX ( account number XXXX ). The principal amount was {$240000.00}, with an issue date from XX/XX/XXXX to XX/XX/XXXX and an interest rate of 4.5 %. Upon maturity on XX/XX/XXXX, XXXXXXXX XXXX automatically renewed the CD for 6 months at an interest rate of 5.15 %. Subsequently, upon the maturity date on XX/XX/XXXX, the bank renewed the CD again until XX/XX/XXXX at an interest rate of 4.9 %. 
o On the other hand, the Citizens Bank offered promotional CD rate as of XX/XX/XXXX, with an 11-month CD rate of 4.5 % and 8-month CD rate of 5 %, even the money market rate was 3 %. XXXX XXXX took advance of XXXX XXXX absence in NY and deliberately offered him the lowest renewal rate of 1.25 %. This action is in direct violation of U.S. government laws regarding automatic renewal rules. 
This discrepancy in the renewal rate has caused XXXX XXXX to suffer a {$3000.00} loss in interest, a substantial amount given his retired status and financial circumstances.