Consumer complaint received 2024-12-06 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: CITIBANK, N.A.
State: MD

Complaint narrative:
Subject : Formal Complaint Regarding Citibank Account Closure and Withholding of Funds To Whom It May Concern at the Consumer Financial Protection Bureau ( CFPB ) : I am writing to formally lodge a complaint against Citibank for the sudden and unjustified closure of my account, as well as the withholding of my funds, which has caused me significant financial and emotional distress. Below, I outline the events leading to this complaint, supported by specific legal violations to strengthen my case. 

Background : On XX/XX/year>, I visited a Citibank branch located in XXXX XXXX XXXXXXXX, to open a new bank account after being attracted by a promotion offering {$1500.00} for setting up two direct deposits over {$300.00}. During my interaction with the bank teller, I inquired if Citibank accepted third-party endorsed checks, as I had a three-party check I needed to deposit to pay my rent. The teller assured me that they accepted such checks. I also confirmed that there would be no fees if I opened the account and set up direct deposits, which they affirmed. 

Based on their assurances, I proceeded to open a new account and deposited a check for {$11000.00}, endorsed properly by all parties. The bank informed me that I would need to wait XXXX business days for the funds to clear and become available. 

On XX/XX/year>, I visited the Citibank branch located at XXXX XXXX XXXX, XXXX, MD XXXX, to follow up on the funds and attempt to resolve the matter further. 

The XXXX : On XX/XX/year>, after the 7-business-day waiting period had elapsed, I returned to the branch to withdraw {$9500.00} to pay my overdue rent. Upon my request, the teller informed me that they could only release {$5000.00}. I explained the urgency of my situation, referencing a court order related to my rent payment. I requested the full amount of {$9500.00}, as agreed when I opened the account. They asked me to wait and called the branch manager.

After waiting 35 minutes, the manager informed me that I could not withdraw the requested amount because my account was being blocked. When I pressed for an explanation, the manager stated that the account was flagged because it had been opened recently, and I had deposited a large amount ( {$11000.00} ) and then attempted to withdraw {$9500.00}. 

Escalation and Account Closure : I was asked to wait further while they reviewed the issue. During this time, I called Citibanks customer service, and my call was transferred to the fraud department. I was informed that my account was permanently closed and that I would receive a letter within XXXX business days explaining the closure. Additionally, I was told that I would have to wait XXXX to 60 days to receive any remaining funds in my account. 

When I asked why my account was closed, I was repeatedly told by both the branch manager and the fraud department that they had no specific reason for the closure. Despite my attempts to explain my urgent need to access my funds due to a court-ordered rent payment agreement, I was denied access to my money.

Legal Grounds for Complaint : 1. Unlawful Withholding of Funds : Violation of the Electronic Fund Transfer Act : The EFTA requires financial institutions to provide prompt access to funds, barring specific exceptions such as verified fraud. Citibanks unexplained and extended hold on my funds constitutes a violation of this act. 
Breach of the Truth in Savings Act : The TISA mandates transparency in how banks handle deposits and withdrawals. Citibanks failure to provide clear explanations violates these transparency requirements.

2. Negligence and Malpractice : The mishandling of my legitimate transaction and refusal to release funds, even with evidence of a court-ordered obligation, constitutes gross negligence. This has caused me significant financial harm, including the risk of eviction.

3. Discrimination : Under the Equal Credit Opportunity Act and Civil Rights Act, financial institutions are prohibited from making decisions based on protected characteristics, such as race, nationality, or religion. If my account was flagged and closed without reason due to implicit or explicit bias, this is a direct violation of these laws.

4. Breach of Contract : By not honoring the stated conditions of my accountnamely, allowing withdrawals after the 7-business-day clearing periodCitibank has violated the terms agreed upon at the accounts opening. Additionally, the lack of proper notice before closing my account breaches basic contractual obligations.

5. Unfair and Deceptive Practices : Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, financial institutions are prohibited from engaging in unfair or deceptive practices. Citibanks promotion to attract new accounts, followed by arbitrary account closure and withholding of funds, constitutes a deceptive practice.

Impact : Citibanks actions have caused me severe financial and emotional hardship : 1. Inability to Pay Rent : I am now at risk of eviction due to Citibank withholding my funds, which were meant to pay my overdue rent.

2. Violation of Trust : The bank assured me that the funds would be available after 7 business days, but it failed to honor this commitment.

3. Lack of Transparency : No clear explanation was provided for the account closure, leaving me confused and frustrated.

4. EmotionaXXXX XXXX XXXX The stress of dealing with this situation, combined with the risk of losing my home, has been overwhelming.

Resolution Sought : I am seeking the following resolutions : 1. Immediate Release of Funds : I request that Citibank release the full amount of my deposit ( {$11000.00} ) immediately.

2. Compensation for Financial Harm : I request compensation for any late fees, penalties, and additional costs incurred due to my inability to pay my rent on time.

3. Investigation and Accountability : I request an investigation into Citibanks practices regarding account closures and withholding of funds, particularly in cases involving critical financial obligations.

4. Written Explanation : I request a detailed written explanation from Citibank regarding the reasons for the account closure and the withholding of my funds.

Supporting Documentation : I can provide the following documents to support my complaint : Copies of the endorsed check and deposit receipt.

The court order related to my rent payment.

Correspondence with Citibank, including records of my interaction with the branch manager and the fraud department.

Proof of financial harm, including late fees and other penalties incurred.

Legal Action Potential : If this matter is not resolved promptly, I reserve the right to escalate the issue further, including but not limited to : Filing a formal complaint with the Office of the Comptroller of the Currency.

Pursuing legal action for damages resulting from financial harm and emotional XXXX  caused by Citibanks negligence.

Seeking redress under the Equal Credit Opportunity Act, Dodd-Frank Act, and other relevant statutes.

Thank you for your attention to this matter. I trust the CFPB will take appropriate action to ensure that Citibank is held accountable for its actions and that my issue is resolved promptly. 

Sincerely, XXXX XXXX XXXX XXXX XXXX

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 non-monetary relief