Consumer complaint received 2025-03-16 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: FIRST CITIZENS BANCSHARES, INC.
State: NC

Complaint narrative:
Subject : Formal Complaint Banking Misconduct & Failure to Process Fiduciary Presentment | First Citizens Bank & Trust To Whom It May Concern, I am submitting this complaint to document First Citizens Bank & Trusts failure to process a legally presented fiduciary financial instrument, in violation of Uniform Commercial Code ( UCC ) regulations, Federal Reserve banking laws, and consumer financial protection statutes. The banks inaction constitutes wrongful dishonor and a failure to meet its legal obligations. 



Background of the Complaint On XX/XX/year>, at XXXX XXXX  ( Local Time ), I formally presented a Bill of Exchange and a structured fiduciary presentment package via registered email, which is an accepted presentment method under the UCC. The presentment was sent to : XXXX XXXX ( Chief Financial Officer ) XXXX XXXX ( Investment Specialist, Private Banking Division ) Investor Relations Department On XX/XX/year>, at XXXX XXXX  ( Local Time ), the registered email was opened and acknowledged by XXXX XXXX. On XX/XX/year>, at XXXX XXXX  ( Local Time ), the presentment was opened again by the banks Investor Relations Department, as well as either the Chief Executive Officer ( XXXXXXXX XXXX XXXX XXXX ) or the Chief Risk Officer ( XXXX XXXX XXXX ). 

Per UCC 3-501 ( b ) ( 2 ), a payor bank must either accept or dishonor a negotiable instrument within the prescribed timeframe. Additionally, UCC 4-302 mandates that a bank must pay or return a demand item before the midnight deadline following presentment. 

The 72-hour regulatory response period required under UCC 3-505 expired on XX/XX/year>, making the presentment legally accepted by default under UCC 3-503 and UCC 4-302. First Citizens Bank & Trust failed to issue a return or dishonor within the legally mandated timeframe, rendering them fully liable for processing the financial instrument as presented. 



Regulatory & Consumer Protection Violations 1. Failure to Issue a Dishonor or Acceptance in the Required Timeframe Violation of UCC 3-501 ( b ) ( 2 ) : Requires a bank to either accept or dishonor a financial instrument upon presentment.

Violation of UCC 3-505 : Establishes a 72-hour statutory period for a response before default acceptance applies.

Violation of UCC 3-503 & UCC 4-302 : The banks failure to respond constitutes default acceptance and financial liability.

2. Failure to Process a Legally Accepted Financial Instrument Violation of UCC 4-302 : Once an instrument is accepted, the bank must pay or return the item before the midnight deadline.

Violation of 12 U.S.C. 391 ( Federal Reserve Regulations ) : Banks must honor fiduciary financial transactions and process legal instruments.

3. Failure to Comply with Consumer Financial Protection Regulations The CFPB regulates financial institutions to ensure lawful processing of transactions.

The banks refusal to process the fiduciary instrument denies consumer rights and breaches fair banking practices.

4. Deceptive & Unfair Banking Practices The banks failure to respond misleads the consumer into believing that the instrument is invalid, despite it being legally enforceable under UCC regulations. 
This constitutes unfair and deceptive financial practices, warranting regulatory intervention. 



Requested CFPB Action Given the violations outlined, I am requesting that the CFPB initiate an enforcement review and require First Citizens Bank to : 1. Provide a formal response explaining their failure to process or return the financial instrument.

2. Comply with UCC and Federal Reserve regulations by either processing the instrument or issuing a formal dishonor.

3. Undergo a compliance audit to ensure future adherence to consumer financial protections. 

Failure to take corrective action should result in escalated enforcement measures, including CFPB penalties for non-compliance. 



Attached Supporting Documentation Copy of the Original Presentment Package ( XX/XX/year> ) Registered Email Proof of Receipt & Opened Time Stamps Final Demand Letter ( XX/XX/year>XXXX  ) UCC-1 Financing Statement & Collateral Assignment Agreement I trust that the CFPB will thoroughly investigate this matter and enforce appropriate consumer protection measures.

Company response to consumer: Closed with explanation