Consumer complaint received 2020-11-25
Product: Checking or savings account — Checking account
Issue: Closing an account — Can't close your account
Company: PEOPLE'S UNITED BANK, NATIONAL ASSOCIATION (NY)

I opened a checking account on XX/XX/20 and a savings account on XX/XX/20 with People 's United Bank. I was able to setup online access and see the checking account on XX/XX/20. Subsequently, for the opening deposit, they required I verify my external bank account where funds were to be withdrawn from, which is XXXX XXXX XXXX XXXX ( XXXX ). Trial deposits posted to the XXXX account on XX/XX/20 in the amounts of {$0.00} and {$0.00}. I verified these trial deposits with People 's United and they withdrew the {$25.00} opening deposit from my XXXX account and deposited it into my new People 's United checking account. I then opened a savings account a day later and for some reason, was required to do another verification of my external XXXX account, which I did. I received trial deposits of {$0.00} and {$0.00} on XX/XX/20 and went to verify those on People 's United 's website that day. However, upon trying to login with the same online banking account I had just setup and used the day before, I was rejected and told to call customer service. Upon calling customer service, I was told I would have to go to a local branch to show my ID to prove that the XXXX account was mine. I think it goes without saying that in the middle of a pandemic, this was not optimal. However, I said I would try to get to the branch that weekend. 

Unfortunately, I was unable to get to the branch because after discussing with my wife, we didn't think it was worth the potential exposure risk just for a couple of new bank accounts. Given we have three-year and four-month old children, not to mention our own health. So I forgot about the accounts until today, XX/XX/20. I just got off the phone with People 's United to close the two new accounts, as I explained I did not feel safe going to a branch during a global pandemic. The nice representative put me on hold and came back a few moments later explaining the reason for the account " lock, '' which was that I had to go to a branch and show my ID and now a XXXX statement proving the external account is mine. All of this over {$25.00}. The initial {$50.00} savings account deposit I had setup never went through, so they have {$25.00} of mine and have had it for almost two months, and verified the bank account twice via trial deposits, and I still have to go in to prove I am who I claim I am, even though all of that information was provided during application for these accounts, as is typical for deposit accounts. 

When the representative got back on the phone, she explained all of the above and I said I'd like to just close the accounts, as I am currently applying for a mortgage to buy a new home and moving money around would create unnecessary overhead on the mortgage lender side. She then explained that even to close the accounts, I need to go to a branch to prove my identity. I questioned this logic, as they already took the {$25.00} nearly two months ago, even though they claim they don't believe I am who I say I am. Now, they won't refund my {$25.00} and close the accounts, effectively keeping my {$25.00} hostage, even though I went through all of the normal account opening steps ( such as providing name, address, driver 's license ID information, etc. ) AND did two different trial deposit verifications. On top of this, there are monthly fees on these accounts which will quickly bring the accounts negative if they are not closed promptly. This is a large risk to me as I have worked very hard over my adult life to keep my credit, XXXX, and other records clean and in good standing. If these accounts go negative, that may risk my reputation I have worked so hard to achieve. 

This is insane. I have opened so many deposit accounts in my lifetime and have never had this happen. This is a flawed policy within the People 's United organization and them keeping people 's money hostage until they go expose themselves in a pandemic is wrong and shameful. Even outside of a pandemic, this practice should be illegal. What was the point of me providing all of my information up front if they simply aren't going to believe me? 

I asked the representative if I could provide any information online to not have to go to a branch and she said no and I still had to go to a physical branch. Talk about a complete disregard for anyone 's health and safety ...