Consumer complaint received 2018-04-19
Product: Debt collection 
Sub-product: Private student loan debt
Issue: Written notification about debt
Sub-issue: Didn't receive enough information to verify debt
Company: CITIZENS FINANCIAL GROUP, INC.
State: PA

Complaint:
In XX/XX/XXXX & XX/XX/XXXX Citizens Bank took two unauthorized debits totaling {$9500.00} from my checking account to offset a student loan debt account that they had not previously made me aware existed. I disputed it immediately, and they told me that they would not refund the money to me unless I had a letter from a judge. I then filed a lawsuit against Citizens Bank Asset Recovery Department and the judge ruled in my favor. Her ruling stated that they had to refund the {$9500.00} to me ( plus court costs ), and offer a reasonable repayment plan to payoff the debt account. 

On XX/XX/XXXX Citizens Bank refunded the {$9500.00} to my checking account. I spoke with someone in the asset recovery department and he offered me a reasonable repayment plan of {$100.00} per month. I accepted that, and it was to begin on XX/XX/XXXX and every month on the XX/XX/XXXX day moving forward, {$100.00} would be transferred from my checking account to the debt account until the loan is paid in full. I asked for this agreement in writing for my own records. They told me they couldn't provide written documentation, but internally they would notate my file and the phone call was recorded. 

On XX/XX/XXXX Citizens Bank did not take the previously agreed upon {$100.00} from my checking account, even through the funds were available. They also did not touch my checking account the following months in XX/XX/XXXX or XX/XX/XXXX, and they never notified me of any failed attempts to collect the {$100.00} or insufficient funds that didn't allow them to make the transaction. 

On XX/XX/XXXX Citizens Bank Asset Recovery Department took an unauthorized debit of approximately {$370.00} from my checking account to offset the student loan debt account. They left me with exactly {$50.00} even. I immediately disputed the transaction at the local branch, because I had paid a bill online that once that transaction went through, would now overdraft my checking account and subject me to insufficient funds fees. The local branch couldn't help, so I had to call the asset recovery department. I requested they refund the {$370.00} because my account would be overdrawn by the next day. They denied my request, and said there's no way they would issue a refund because I still owed on the debt account and they had the right of offset. I explained there was an agreement in place with a payment plan that they didn't honor, and now they have caused me even more financial harm despite the lawsuit and agreement that was explained above. Their solution was to not refund me the {$370.00}, but if I incurred any insufficient funds fees that they would waive the next three fees. I said that's not acceptable because we previously agreed to payments of $ XXXX/month which I could afford, and I can not afford {$370.00} or more, especially when I didn't authorize a payment of that amount. 

I then asked for a transcript of the phone call from XX/XX/XXXX and XX/XX/XXXX.  They told me they couldn't provide that information, even though they said these phone calls were recorded. I asked for more written documentation, which they said they couldn't provide. All they could give me was a transaction history upon written request from me. The person I spoke to advised to call the collection agency that had been assigned to this debt and work out a repayment plan. I explained that I already worked out a repayment plan with Citizens Bank directly and I don't think it's right to have two separate debt collectors ( the agency and Citizens ) reaching out to me to collect the same debt twice. 

Now I am forced to find an outside solution because of Citizens Bank 's lack of communication and failure to honor a verbal agreement to repay this alleged debt.

Company response to consumer: Closed with explanation