Consumer complaint received 2022-11-04
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CAPITAL ONE FINANCIAL CORPORATION (CA)

XX/XX/XXXX RE : Account Dispute Checking To Whom It May Concern : My wife and I recently opened a joint checking and savings account with Capital One. We set-up direct deposit from both of our workplaces which was set to be funded on XX/XX/XXXX. As recent XXXX, we received some checks from friends and family. We utilized remote check deposit via phone to deposit some of these funds. We were unable to deposit cash until we received the debit cards so we started with two checks. XXXX check was in the amount of {$150.00} and the other for {$500.00}. Both checks were deposited on XX/XX/XXXX. A brief hold was placed on the {$150.00} check upon which the system indicated funds were made available. NOTE : Although the system indicated funds were available we later found out we can not access these funds via ATM which will be mentioned further below. 

We received an email on XX/XX/XXXX indicating there was unusual activity on our account after depositing these two checks and to call XXXX. Upon calling the customer service number, we spoke with a service rep at Capital One named XXXX. She indicated the account was temporarily restricted as they need to verify some additional information. XXXX indicated she needed to contact the issuer of the {$500.00} check to verify they in fact meant to write a check to us. We escalated and spoke with XXXX supervisor, XXXX. XXXX indicated this is their procedure and they are only able to verify the check by contacting the issuer. We indicated we would accept a longer hold even up to 2-3 weeks to avoid contacting the issuer. We also informed XXXX, that we recently obtained a Capital One Credit Card with a {$15000.00} credit limit and have yet to use the card. We further indicated we have substantial deposits in our primary banks, have excellent credit, and no issues that would warrant this type of verification. 
In my 23 years of being a bank customer this is the first time a bank would need to contact the issuer of a check to verify their intent especially considering Capital One had already processed the check and funds availability. The check was a wedding gift to my new wife and I, and needless to say this is beyond embarrassing to us. We have never received this type of embarrassing treatment at our banks. We both have been working in the banking industry for over 20 years and know this treatment is unfair. 
As a result, we wanted to close our accounts, but now are being held XXXX until the {$500.00} check can be verified with the issuer. We informed XXXX that the issuer is currently in XXXX ; however, XXXX indicated we will not have access to the {$500.00} until the check can be verified. 

Since the check has been processed by Capital One we have no choice, but to proceed with XXXX XXXX verification process by contacting the issuer. Additionally, we are not able to access any of the {$650.00} until Capital One is able to verify the check with the issuer. This includes the {$150.00} that was indicated as available to us. As confirmation, I visited the ATM inside of XXXX at XXXX XXXX XXXX, XXXXXXXX XXXX XXXXXXXX after the call on XX/XX/XXXX and it would not allow me to withdraw any of the {$150.00} in available cash. This process not only appears discriminatory, but we have no access to the funds until Capital One can verify the {$500.00} check with the issuer. 

Furthermore, XXXX with Capital One indicated we need to call back and let our friend know once she returns from XXXX that they will call to verify because Capital One needs myself or my wife to be on the phone in order for Capital One to verify with the issuer. Only then will they release the funds to us. The process of speaking with XXXX and XXXX at Capital One between all the holds, kept my wife and I on the phone for over an hour and twelve minutes. 

We indicated to XXXX that their process of only releasing funds until they contact the issuer appears to be an illegal practice which my wife and I believe violates Regulation CC. 

As a result, we have closed our Credit card on XX/XX/XXXX after the phone call with XXXX and XXXX at Capital One. We cancelled our direct deposit authorizations today as well. We plan to close the Capital One Acct as soon as they release the funds to us which at this point has no definitive timeline until we call Capital One again AND they are able to get in contact with the issuer during our phone call. According to XXXX, if they are unable to verify the funds with the issuer, they will not release the funds with no determined time frame.