Consumer complaint received 2024-11-02 00:00:00
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Closing an account — Fees charged for closing account
Company: SANTANDER HOLDINGS USA, INC.
State: NY

Complaint narrative:
I am complaining about an unfair and deceptive practice by Santander Bank preventing a customer from closing an account and obtaining their funds without paying a penalty. 

Here are the details : About 9 months ago, I attempted to close my checking account at Santander Bank. The bank quickly asked that I open a CD instead, and since it paid a reasonable amount of interest, I agreed, as they assured me the transaction would be quick and easy. 

By contrast, closing the CD has been quite an ordeal, taking hours and hours of my time, without resolution. In fact, the Bank renewed my CD against my express request and is now saying it will charge approximately a {$100.00} penalty fee for closing it. 

The Bank sent me a Letter stating that my CD was maturing on XX/XX/XXXX and that I had several options including calling the Customer Service number to close the CD and receive the value of my account. The Letter said I could close the CD within 10 days of maturity without penalty, although I would earn no interest after the maturity date. As my schedule is very busy at work, usually not permitting time for phone calls, and I travel quite a bit on weekends, I called the Bank on XX/XX/XXXX, XXXX days before maturity date, to close the account. The representative informed me it was too early to close without incurring a penalty, since the maturity date was 2 days away, and refused to take my request XXXX days ahead. I stated that the maturity date was a Saturday, but the representative said I had to wait until the XXXX. As I was not able to call on the XXXX, I called the Customer Service line on the XXXX. The Representative started to take my request to close the CD and then the call dropped. I called back, and the next Representative stated he would close my CD and that the funds would be processed within 3-5 business days. 
On XX/XX/XXXX, I noticed I had not received the funds, so called Santander to ask why. The Representative informed me that I should have received a letter stating that, since the amount of the CD was over {$5000.00}, I was not allowed to close it over the phone, but had to send a notorized letter requesting closure or go into a branch. I stated that I had not received any such letter, but resolved to go to the branch at the next opportunity. 
On XXXX, the first day I was free during bank hours, I visited my local branch. The teller informed me that I had to wait for a banker, for XXXX minutes. I waited. Then, after showing the banker my ID and waiting patiently, after about another XXXX minutes, the bank informed me that I would have to pay a penalty ( I believe it was about {$100.00} ) since it was outside the 10 day period / grace period after XXXX. 
I argued that I had already tried to close the CD within 2 days of expiration by calling the Customer Service number as instructed by the letter, and was told by the Representative taking my call that the CD would be closed. The letter from the Bank stating that I had to go into the branch or send a notorized letter was never delivered, and I never received it. In any case, it is likely that, had I received the XXXX letter, I would not have had enough time to send a notorized letter or visit a branch during open hours within the 10 day limit. I asked the banker to waive the fee and he refused, saying he needed to escalate it, without mentioning how I would be informed of the outcome of the escalation. 
The CFPB and XXXX need to be aware that this Bank is making it extremely difficult for customers while unfairly assessing penalties for simply closing an account. Everyone needs to get their money out at some pointclosing accounts should be something they do for a customer with good grace. The branch employees showed absolutely no empathy towards my situation, merely stating the policies that I had no way of knowing and that truly disadvantaged me. 

The Bank should have disclosed, at the time I called in to close the CD, that it would take a notorized letter or visit in person to a branch, since the Bank well knew that the value of the CD was over {$5000.00}. I believe they deliberately did not tell me, misleading me that the CD would be closed, knowing full well it would not be, to ensure I missed the grace period and would have to pay a penalty or renew the CD. Further, the Bank should have disclosed, at the time I opened the XXXX account, that it would require notorized letter or a visit to a branch within 10 days of expiration to close it and receive funds without penalty.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation