Consumer complaint received 2025-01-20 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CITIBANK, N.A.
State: PA

Complaint narrative:
Subject : Formal Complaint against Citi Bank Account Closure and Withheld Funds Dear CFPB, I am writing to formally lodge a complaint against Citi Bank for their unfair and potentially unlawful handling of my new checking account and the funds I deposited from a settlement check issued by the CFPB for the XXXX XXXX  settlement. Below, I provide a detailed account of the situation and request your immediate assistance in resolving this matter. 
On Mon, XX/XX/year> I deposited a settlement check in the amount of {$690.00}, drawn on XXXX XXXX, into my newly opened Citi Bank checking account via mobile deposit. The funds were deposited to satisfy Citi Banks requirement that money be deposited into the account within a certain time frame following account opening. Shortly after, I received a notification from Citi Bank that the check was deposited. However, the account was unexpectedly and inexplicably closed without prior warning or explanation. 
I have not even activated my debit card for this account, yet Citi Bank has put a hold on my account and restricted my access to the funds. I have contacted Citi Banks customer service department XXXX times, including their fraud department, to inquire about the status of my account and the check. Unfortunately, none of the representatives I spoke with could provide a clear explanation for the account closure or the hold on my funds. Instead, they advised me to wait for a letter that would supposedly explain their actions. 
Adding to my frustration, I can not access my online account to read this letter, nor have I received it by mail. As a result, I am forced to endure additional delays as I wait for Citi Bank to mail the check back to me, which they claim could take over a month. 
Citi Banks actions have caused me significant financial distress and undue harm to my health. I rely on these funds to meet immediate financial obligations, and Citi Banks unjustified and opaque behavior has made it impossible for me to access money that rightfully belongs to me. 
Violations and Legal Concerns XXXX. Unfair and Deceptive Practices ( XXXX ) : Under the XXXX XXXX, financial institutions are prohibited from engaging in unfair, deceptive, or abusive acts or practices. Citi Banks lack of transparency, failure to provide a legitimate reason for account closure, and refusal to release the funds are clear violations of this provision. 
XXXX. Regulation E ( Electronic Fund Transfers ) : Regulation E requires that consumers have prompt access to their accounts and funds. By preventing me from accessing my funds without justification, Citi Bank is in potential violation of this regulation. 
XXXX. Right to Access Funds : Citi Banks delay in processing and mailing a refund check is unreasonable and may violate industry-standard timelines for such actions. 
XXXX. Harm to Financial and Mental Well-being : Citi Banks practices have caused me undue financial and emotional stress. I am now unable to access funds for essential expenses and have been forced to endure unnecessary delays and uncertainty.

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