Consumer complaint received 2025-03-22 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem making or receiving payments
Company: TD BANK US HOLDING COMPANY
State: PA

Complaint narrative:
Subject : Unauthorized Closure of Trust Checking Account - Deposit per 12 U.S.C. 411 and 31 CFR 3285 I am writing to express my concern about the unauthorized closure of my trust checking account. This account was associated with a check I had deposited, adhering to the provisions outlined in 12 U.S.C. 411 and 31 CFR 3285, which guide the process of endorsing checks to the treasury through an agent, in this case, TD Bank. 

legal tender Legal Tender refers to all U.S. coins and currency that issued by the government. U.S. Cash dollars are also a valid form of legal tender. Nonetheless, federal statutes do not require a seller to accept cash as a form of legal tender for payment of goods or services that were rendered. Thus, businesses may establish their own policies regarding whether they will accept cash as legal tender. Legal Tender also includes Federal Reserve notes as well as notes from Federal Reserve Banks and national banking associations for purposes of settling public and private debts, duties, dues, and taxes. Legal tender generally does not include personal checks, credit cards, or other general forms of noncash payments. In some instances, foreign currency may be accepted as legal tender. Additionally, legal tender can only be used in regard to paying off debts.

The purpose and function of legal tender is for courts to determine whether it is a satisfactory payment for monetary debt. Each jurisdiction can define its specific limits of what is legal tender but generally it is anything when offered ( tendered ) and accepted in order to pay off the debt. Although the original creditor who is owed money is not necessarily obligated to accept the tendered payment, the specific act of tendering the payment absolves the debt. 
411. Issuance to reserve banks ; nature of obligation ; redemption Federal Reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal Reserve banks through the Federal Reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal Reserve banks and for all taxes, customs, and other public dues.

They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of XXXX  , District of Columbia, or at any Federal Reserve Bank.

Its important to understand why a remedy had to be written into the Federal Reserve Act. To look at that, we look at the description in the title : [ 63rd Congress, Sess. 2 ; Ch. 4-6, P. 251 ] An Act. To provide for the establishment of Federal Reserve banks ; to furnish an elastic currency ; to afford means of rediscounting commercial [ debt ] paper The important part for us to focus on is to furnish an elastic currency. To understand the authority behind remedy in the United States of America, we should look back to 1789, the Judiciary Act, and read : saving to suitors in all cases the right of a common-law remedy, where the common law is competent to give it.

This saving to suitors clause of XXXX  also allows for the exclusive original cognizance by Congress and by the United States Government of all seizures on land. i.e. reprisal Therefore, Congress was required to write the remedy from elastic currency into Section 16 of the Federal Reserve Act : They [ Federal Reserve Notes ] shall be redeemed in gold on demand at the Treasury Department of the United States, or in gold or lawful money at any Federal Reserve bank.

However, reading Section 16 carefully, the remedy from central banking reveals that Federal Reserve Notes are for reserve banks. If you have Federal Reserve Notes in your wallet, in other words, you are considered a reserve bank. [ Or holder in due course ] To restate remedy, one could quit being a reserve bank by redeeming lawful money with their Federal Reserve Notes.

Corporate powers are defined in the Federal Reserve Act.

[ 63rd Congress, Sess. 2 ; Ch. 4-6, P. 254 ] Upon filing of such certificate with the comptroller of the currency as aforesaid, the said Federal Reserve bank shall become a body corporate, and as such, and in the name designated in each organization certificate, shall have powerFirst. To adopt and use a corporate seal.

Second. To have succession for a period of twenty years from its organization unless it is soon dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law.

Third. To make contracts. 
Fourth. To sue and be sued, complain and defend, in any court of law or equity. 
So, do the math. From XXXX to XXXX was twenty years. All these reserve banks people with Federal Reserve Notes in their pockets, in their wallets, in their pillows, under their mattresses, whatever, in their bank accounts they wanted to get their Federal Reserve Notes redeemed in XXXX for gold or gold certificates like United States notes ( lawful money ), in elastic currency. 
Because the nature of Federal Reserve Notes is elastic currency, the Federal Reserve banks had been producing far more notes than they had gold and gold certificates redeemable in gold to return.

[ XXXX XXXXXXXX XXXX XXXX XXXXXX/XX/XXXX ; XXXX XXXXXXXX XXXX XXXX, Colorado ] XXXX XXXX XXXX, formerly Governor of New York, quickly came to the bankers rescue. He declared the Bankers Holiday.

[ Public Law 94-412 ; 90 Stat. 1225 ; Sept. 14, 1976 ] This is a critical point to remember if you are considering applying remedy today because theyve kept the ability to make a Bankers Holiday. Theyve kept the ability to keep a Bankers Holiday in case all you reserve bankers with Federal Reserve Notes private credit in your pockets decide to redeem lawful money at the same time. Thats a bank run. Bankers Holidays are for bank runs.

If youre following this evidence, the remedy is still in place. Logically, you should be wondering what happened after XXXX. In XXXX, the wording was changed to accommodate the gold seizure of FDR. 
Section 16 of the Federal Reserve Act of 1913 was codified into Title 12, Section 411, and its been there ever since. It was changed in XXXX to read : They [ Federal Reserve Notes ] shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of XXXX , District of Columbia, or at any Federal Reserve bank. 
Now, since then, many a patriot has marched into a Federal Reserve Bank with Federal Reserve Notes demanding gold, gold or silver coin, some sort of substance, some sort of lawful money according to that patriots rendition of what the Constitution reads. 
And because of such patriots, its become impossible to even get into the lobby of the Federal Reserve Bank under such a demand. I think its important to explain clearly that due to the saving to suitors clause of XXXX, Congress can not take away remedy. Congress had to leave remedy in place. 
So, we have to examine inelastic currency, United States notes : The amount of Unite

d States currency notes outstanding and in circulation- ( 1 ) May not be more than {>= $1,000,000} ; and ( 2 ) May not be held or used for a reserve. [ 31 USC 5115 ] What this means is the amount of United States currency not
es outstanding and in circulation is fixed. The amount of United States notes in circulation can not be expanded upon through fractional lending. This is the difference between elastic currency and inelastic currency. 

In addition, I would like to bring to your attention the following relevant federal laws and consumer protection laws related to my case : 1 ) 15 U.S.C. 1601 : This provision grants me the right to request information related to my financial transactions, as a consumer.

2 ) 15 U.S.C. 1611 : This section highlights the potential criminal liability for any willful and knowing violations of the above-mentioned regulations.

3 ) Truth in Lending Act ( TILA ) : This federal law promotes the informed use of consumer credit by requiring disclosures about its terms and costs. It is essential to ensure transparency in financial transactions such as the one in question.

4 ) UCC Article 4 - Bank Deposits and Collections : This section outlines the rules governing the collection of checks and other items by banks, emphasizing their responsibility in this process. 

Despite adhering to these regulations, my account was closed without prior notice or any explanation. This action has caused significant inconvenience and concern for me, as I had been utilizing this account for legitimate financial transactions. 

I would like to request that you provide me with a detailed explanation regarding the closure of my account and clarify why these regulations were not considered before taking such a step. Moreover, I would appreciate your assistance in either reinstating my account or providing alternative solutions to help me access the funds in my trust checking account. 

My endorsement according to 31 CFR 328.5 on the back of the check.

For presentation to the United States Treasury of, Fiscal Agent of the United States, for redemption or in exchange for securities of a new issue, in accordance with written instructions submitted by TD Bank.

Company response to consumer: Closed with explanation