Consumer complaint received 2025-12-27 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: CITIBANK, N.A.
State: OK

Complaint narrative:
CHECK # : XXXX AMOUNT : {$1300.00} DATE DEPOSITED : XX/XX/XXXX ISSUING BANK CONFIRMATION : XXXX XXXX XXXX  has confirmed the check was paid/cashed on XX/XX/XXXX ISSUING BANK REVERSAL : XXXX XXXX Bank later reversed the refund associated with this check and recovered the {$1300.00} FACTS : XX/XX/XXXX XXXX XXXX XXXX issued refund check # XXXX in the amount of {$1300.00} to XXXX XXXX following a dispute resolved in his favor. 

XX/XX/XXXX The check was endorsed and deposited via mobile deposit into my Citibank checking account ending XXXX. 

XX/XX/XXXX XXXX XXXXXXXX XXXX confirms the check was paid/cashed via phone call. 

XX/XX/XXXX Citibank restricted online access, debit card access, and placed the account under review. 

XXXX XXXX XXXX Citibank notified me that my account would be closed due to internal policy related to a third-party endorsed check. 

XX/XX/XXXX Citibank confirmed account closure and stated that the remitter would need to submit a hold harmless in order for funds to be recovered. 

XX/XX/XXXX XXXX XXXX XXXX  reversed the refund associated with the check and debited {$1300.00} through account activity. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXXrocessed two payments for the full balance of the card.

As of today Citibank retains {$1300.00} in proceeds from the check and refuses to disburse or return the funds. 

ISSUE AND BASIS FOR COMPLAINT : Citibank accepted, presented, and collected settlement on a negotiable instrument, then closed the account and retained the proceeds. While Citibank may close an account for internal policy reasons, it does not eliminate the banks obligation to properly disburse or return funds that were successfully collected. 

Citibank has stated that recovery requires action by the issuing bank ( XXXX XXXX ). However, XXXX XXXX has confirmed that the refund was reversed and the {$1300.00} recovered. Citibank is therefore holding funds for which the issuing bank has already reclaimed the underlying obligation. 

Citibank no longer has a lawful basis to retain these funds and is refusing disbursement based on internal procedures that require third-party action that XXXX has declined to take.

ADDITIONAL CONCERNS : Citibank imposed a requirement for in-branch verification despite there being no Citibank branches within reasonable geographic access ( nearest branch approximately XXXX miles away ). 

Citibank has provided no written explanation justifying continued retention of funds after the refund was reversed by the issuer. 

CONSUMER HARM : {$1300.00} has been inaccessible for over a year Financial hardship to a XXXX individual and household Prolonged administrative burden without resolution Retention of consumer funds without legal justification DOCUMENTS ATTACHED : XXXX XXXX XXXX Statements/Binder confirming the check was issued, reversed, and paid, and copies of orignal check Front/Back. Balance statement from XX/XX/XXXX indicating dispute was found in his favor thus a refund balance appears- {$1300.00}, a balance statement from XX/XX/XXXX confirming XXXX reversed the refurnd and recharged the balance back to the card for that amount, and a balance statement from XX/XX/XXXX showing two Auto payments for covering the full card balance. 

-Citibank account closure notice referencing third-party recovery / hold harmless

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