Consumer complaint received 2024-05-14
Product: Checking or savings account — Checking account
Issue: Managing an account — Cashing a check
Company: CITIBANK, N.A. (CA)

On XX/XX/XXXX I received my biweekly check from my employer. The reason I received a paper check rather than direct deposit was due to the fact that I had just opened this new bank account a few weeks prior and wanted the funds to be deposited into this new account. That day I received my confirmation email and in the mobile app it shows the check was deposited but it was on hold which is normal. Banks typically hold it for 24 hours to verify. The next day I opened the app to verify the funds were there and the app would not allow me to log in. I had no access to my account, and I noticed my card was locked. I then called that day to see what was going on they stated my account was locked due to suspicious activity. They eventually told me it was because of the check I deposited. they asked me many questions like who the issuer was ( which it is my employer and a very large and well-known company ), They asked me questions about the amount and later stated it was under investigation. I asked how long this process would take and they stated 24-48 hours. They also asked if it was possible to have my employer call them directly to verify the check, I said absolutely. The next morning, I came into work, and I told my HR department the situation they then turned it over to our payroll specialist, I then gave her the number that Citi Bank provided, and they said they would handle this from there. This was on Friday XX/XX/XXXX. The same day I got an email from my HR department stating they were able to reach them, and Citi bank told them to ask me to call back the next morning before XXXX. ( I have the emails sent to me for proof if needed. ) I called back the next morning before XXXX to see if there were any updates and Citi Bank now was stating they never received any calls from my employer and that my account was in the process of being completely closed due to fraudulent activity. After going back and forth with them for 3 hours I finally got a supervisor on the phone where she stated she does see the notes from the call from my employer but that they were not able to verify the check. I asked them how is this possible I had my HR payroll specialist call you directly there is no way they wouldn't have been able to verify it. She would not give me any help or suggestions just kept stating that they were not going to release the check off hold and that my account was going to be closing. She said all I can do is request to have a stopped payment on the check from my employer. I then waited till Monday morning XX/XX/XXXX to speak to my HR department about this again and stated what they told me. My HR department then proceeded to try to do a stop payment on the check and they inform me they aren't able to do that because they check has already been cleared. I called back Citi Bank and asked them how they can clear my check but state that its fraudulent. If the check is fraudulent, it should have automatically bounced especially considering that my account is going into closure. I then got transferred to the fraud department where he told me there is no way to reverse the check and that I have to wait 30-60 business days for the check to bounce back to my employer. Now I am stuck in a position where I have no funds, I can not pay my bills and will not be receiving another check until the XXXX. This is ridiculous and Citi Bank has been nothing but a disaster.