Consumer complaint received 2024-01-03
Product: Checking or savings account — Checking account
Issue: Closing an account — Can't close your account
Company: CITIZENS FINANCIAL GROUP, INC. (MA)

On XXXX, I contacted Citizens Bank to attempt to close my Savings Account and my Checking Account. Citizens Bank sought to impose identity verification requirements that are vastly different from the identity verification requirements they imposed during account creation and that required the support of special technology I do not have access to. Consequently I am not able to close my accounts or transfer my funds. 

-- - I opened both accounts on XXXX. This was done online through webforms only. I provided identifying information and Citizens Bank created the accounts. Citizens Bank was offering a special sign up bonus to create this account and I was happy to keep my accounts long enough to qualify. I intended to close the accounts afterwards as their maintenance fees are excessive compared to my credit union, XXXX. The sign up bonus was deposited in my account in XXXX. 

Today XXXX I called Citizens Bank to inquire about the proper procedure for closing my accounts. I was told I could use their website 's Transfer Funds feature to XXXX out my accounts, then call and request the closure. The accounts must be emptied prior to closure. 

When I used the website 's Transfer Funds feature, a hold was placed on my account. Citizens Bank would need to verify my identity before transferring, which is a sensible security measure. I called the number provided.

Citizens informed me there are onl

y two options to verify my identity. ( 1 ) I can drive to a Citizens Bank location and verify my identity there. ( 2 ) I must remain on the phone line wit
h Citizens Bank while they send a phone call to my phone number which I must answer to hear a one-time passcode ( OTP ), which I will recite back to the bank 's agent on the original phone call. 

I don't have a car. Citizens Bank is headquartered in a different state. I signed up and have so far done all of my banking without any in-person requirements. 

My phone is not capable of receiving two phone calls at once. The agent I spoke with tried just in case, but I was able to verify from documentation from my phone provider ( XXXX XXXX ) that there is no ability to receive two calls simultaneously. Additionally, I have a second phone line I could theoretically use to receive the OTP then recite back to the agent, but the agent told me that since this second phone is not associated with my bank account, they're not allowed to use it for verification. I went online to add the second phone number to my Citizens Bank account, but was told that this phone provider ( XXXX XXXX ) doesn't disclose enough info to the public about who owns the account, so Citizens is not able to send identity verification to this number. Finally, I asked if the agent could give me a call back number, hang up the original call, send the verification call so that I could record the OTP and call back with it, but I was informed this is not permitted. 

These requirements are asymmetrical : identity verification to close my account is vastly different from the identity verification required to open my account. Citizens Bank also has sent OTP to me by text message ( at my XXXX XXXX number ) and by email to verify identity for transactions until now, but claims they are unable to use those methods during the account closure process. 

The requirements are onerous : there was no disclosure that I would be required to travel to the bank in person. It's not typical to ask a person to receive two phone calls on one phone line simultaneously to verify their identity. Despite having access to two different phone numbers from two providers, I am not able to meet the technical requirements for their verification process. 

Meanwhile, because I made plans to stop using this account, I will start to accrue maintenance fees for non-use. These are the very fees that I found prohibitive and which motivated me to cancel. Citizens Bank has a perverse incentive to create asymmetrical and onerous account closure procedures as this generates revenue through excessive fees. 

Since Citizens Bank will not accommodate my closure request, I am working with my credit union, XXXX, to try to initiate ACH transfer requests. These are subject to daily, weekly, and monthly limits which may result in delays and thus fees from Citizens Bank. 

To fully resolve this matter, I would request the following. 
1 - Citizens Bank should comply with any ACH or transfer requests from my credit union. 
2 - Citizens Bank should waive any fees that result from the delays caused by their exorbitant closure procedure. 
3 - Citizens Bank should review and update their closure procedure. In particular, there should be identity verification parity so that closing an account is as easy as opening one. Identification procedures should follow industry standards ; they should not require two simultaneous phone calls and should not require special buy in from phone service providers to disclose their customers ' private information. 

Absent regulatory pressure from consumer agencies, Citizens Bank has every incentive to keep an easy process to lure in new accounts and difficult process to prevent closure. I hope CFPB will assist by mediating my dispute with Citizens Bank.