Consumer complaint received 2024-04-09
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: CITIBANK, N.A. (MA)

Dear CFPB representative, I am writing to file a complaint against Citibank regarding an issue I have been facing with their handling of my funds, including the funds transferred to my checking account at their bank by my daughter, XXXX XXXX, who resides with me at the same address. Despite our efforts to resolve the matter directly with Citibank, I have not received a satisfactory resolution. 

Summary of the Issue : In XX/XX/XXXX, my daughter XXXX XXXX initiated XXXX transfers totaling {$29000.00} from her XXXX XXXX account to my Citibank checking account. Although these XXXX transfers went through successfully, my account was restricted shortly after. Attempting to resolve the issue, my daughter and I visited XXXX different Citibank branches in the second half of XXXX. We provided documentation to verify my identity and the legitimacy of the transfers. However, despite our efforts, we were unable to achieve a resolution at the local branches. The staff reported that they couldn't assist us because the restrictions were placed by Citibank 's XXXX XXXX Department. The branch staff called the department on our behalf, but that department refused to take the documentation we wanted to submit to them for verification. In addition, I was informed that I couldn't close the account at the branch, either. The representative from the XXXX XXXX Department stated that my only option was to wait until Citibank closed my account and issue me an official check after their review process was completed. 

In XX/XX/XXXX, Citibank notified me in writing that they would close my checking account within 60 days from XX/XX/XXXX. In their Account Closing Notification, it stated that " If there are any funds that belong to you at the time of closure, Citibank will issue you an official check for that balance to the address on file. '' The final statement ( XX/XX/XXXX ) indicated that a withdrawal of the full balance of {$36000.00} was made before account closure under Other Withdrawal on XX/XX/XXXX. However, I didnt receive the promised official check or any other correspondence regarding what Citibank would do with the funds between XX/XX/XXXX and XX/XX/XXXX. 

On XX/XX/XXXX, I contacted Citibank via the phone number they provided on the Account Closing Notification ( XXXX ) and was informed that all the funds in my closed account were held by Citibank 's security department. The representative agreed to issue me a refund check of {$6100.00} but declined to include the remaining {$29000.00} ( transferred by my daughter ) in the refund check, citing an inability to verify ownership of the funds. The representative suggested that the only solution was that my daughter should file claims with XXXX ( her bank ) to reverse the transfers to retrieve the money she sent me. 

Efforts to Resolve the Issue : My daughter visited a local XXXX Bank branch attempting to reverse the transfers on XX/XX/XXXX. However, XXXX XXXX indicated that they were unable to resolve the issue in the manner suggested by Citibank per their regulations and advised my daughter to seek resolution directly from Citibank. 
My daughter then tried to call Citibank customer service several times via several phone numbers provided by Citibank on their website or in the letters and statements they issued. She was unable to reach a representative at all because all numbers she called failed to provide assistance to an individual who doesnt currently have a checking or savings account with their bank. 

Requested Actions to take by CFPB and Citibank : Within my discretion, I believe Citibank is the primary responsible party for resolving this issue. Thus, I kindly request that the CFPB assist me in communicating with Citibank to verify the following facts by reviewing the attached supporting documents ( with key points highlighted in yellow ) : ( XXXX ) Citibank received XXXX transfers totaling {$29000.00} from my daughter XXXX XXXX XXXX XXXX XXXX account to my Citibank checking account ( see Attachment A : XXXX XXXX Statements ). 
( XXXX ) Citibank stated that my checking account would be closed within XXXX days from XX/XX/XXXX and agreed to issue me an official check for the funds that belonged to me ( see Attachment B : Account Closing Notification ). 
( XXXX ) There was a total of {$36000.00} in funds available in my Citibank checking account before its closure in XX/XX/XXXX ( see Attachment C : Citibank Account Statement ). 
( XXXX ) A notarized affidavit signed by my daughter confirming : ( a ) she sent the XXXX transfers totaling {$29000.00} from her XXXX XXXX account to my Citibank checking account in XX/XX/XXXX ; ( b ) she demands that Citibank either return the {$29000.00} to her or include the funds in the refund check they agreed to issue to me ( See Attachment D : Affidavit Signed and Notarized ). 

Additional Information : Please note that my daughter, XXXX XXXX, resides with me at the same address ( see Attachment XXXX : Real Estate Tax Bill for proof of XXXX XXXX XXXX address ). 

Potential Violations of Consumer Protection Laws : Citibank 's actions may violate the Electronic Fund Transfer Act ( EFTA ) and Regulation E, which protect consumers in electronic fund transfers. Under these laws, financial institutions must promptly investigate errors and provide provisional credit for disputed funds. My daughter and I have made diligent efforts by trying to prove the legitimacy of the XXXX transfers she made at local branches of Citibank. However, their Fraud Prevention Department refused to take any evidence we would like to submit and refused to allow me to close the account at the local branches to access my funds. The XXXX XXXX Department told me that the funds would be returned to me in an official check if they decided to close the account after their review. They failed to take the appropriate action as well. Citibank 's failure to return the funds to either my daughter or me may constitute a violation of these provisions. 
Furthermore, Citibank 's failure to provide a practical method for us to retrieve the withheld funds and their unresponsiveness to our attempts to resolve the issue may violate the Consumer Financial Protection Act ( CFPA ), which prohibits unfair, deceptive, or abusive acts or practices. Withholding funds without proper justification for extended time, failing to provide an explanation to me in writing, and failing to provide adequate customer service could be considered unfair and abusive practices. 

Attachments : A : XXXX XXXX Statements B : Account Closing Notification C : Citibank Account Statement D : Affidavit Signed and Notarized XXXX : Real Estate Tax Bill