Consumer complaint received 2026-02-23 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Applying for a mortgage or refinancing an existing mortgage — Fees or costs during the application process
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
On XX/XX/XXXX, I applied for a Home Equity Line of Credit ( HELOC ) with Citibanks mortgage department. As part of the application process, my credit report was pulled shortly afterward. The report showed approximately XXXX accounts that were not associated with me. I immediately informed the representative and underwriting team that these accounts did not belong to me. Despite this disclosure, I was not advised at that time that resolving these credit report discrepancies was required for approval. From XX/XX/XXXX through XX/XX/XXXX, Citibank continued processing my application and requested multiple documents. I promptly complied with each request and provided all materials asked for. During this time, I was told that if I could demonstrate that the listed accounts were not mine, my HELOC could still be approved. I specifically asked what documentation would be acceptable and was told that written confirmation from the creditors would help. Based on this guidance, I contacted each creditor listed. XXXX lender provided written confirmation via email stating the account was not mine, which I promptly forwarded to Citibank. Other creditors, including XXXX institution associated with Citibank, informed me that they could not provide written confirmation but did verify verbally that the accounts did not belong to me. I even offered to participate in a three-way call with the creditors and Citibank representatives so they could confirm directly that the accounts were not mine. At no point during this period did any representative inform me that my application would be denied unless those accounts were formally removed from my credit report through the credit bureaus. Throughout these months, I was led to believe that my application was progressing toward approval. Based on that understanding, I continued investing time, effort, and money into the process. In total, I spent close to {$1000.00} on document preparation, related fees, and associated costs. I would not have incurred these expenses had I been informed at the outset that the disputed accounts would prevent approval. On XX/XX/XXXX, I was informed that my HELOC application was denied due to the same accounts that I had disclosed at the very beginning of the process. This was the first time I was clearly told that those items needed to be resolved through the credit bureaus before approval could be granted. I believe this situation reflects a failure to clearly communicate a material requirement for approval. Had I been properly informed in XX/XX/XXXX, I could have addressed the credit report issues immediately and avoided months of unnecessary work and expenses. I am requesting a formal review of this matter, including an explanation as to why this requirement was not disclosed earlier in the process, and consideration of reimbursement for the costs I incurred as a result of relying on the information provided to me during the application process.

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