Consumer complaint received 2025-08-12 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CITIBANK, N.A.
State: NY

Complaint narrative:
On XXXX XXXX XXXX my spouse and I deposited two legitimate U.S. Treasury refund checks issued by the Internal Revenue Service ( IRS ) into our Citi accounts, in the amounts of approximately {$57000.00} and {$51000.00}. These checks are authentic, valid, and fully confirmed by the IRS, including matching check numbers and amounts shown on official IRS transcripts. 

We went directly to the Citi branch in person with these checks. At the branch, we explained to bank staff exactly what the checks were, opened the envelopes in front of them, and even opened a new account during that same visit. Citi staff issued receipts stating that the funds would be available within 24 hours. 

However, as soon as we left the branch, all our accounts were blocked. This freeze did not only affect us we have a joint account with our close friend and business partner, and as a direct result of Citi action, all of his accounts and even his wifes accounts were also frozen, despite them having no connection whatsoever to the deposited checks. This has caused significant harm to them as well, purely because of our deposit of legitimate IRS-issued funds. 

Citi is well-known for attracting customers with large deposits by offering promotions and promising good service but in our case, it felt like a bait-and-switch : once the funds were in their control, they froze everything without legal justification. 

I also contacted the Internal Revenue Service ( IRS ) directly regarding these checks. The IRS confirmed that both refund checks are legitimate and valid, and that there is no problem with my account or my spouses account on their side. They explained that the only time they initiate a check trace is when a check is cashed by someone other than its rightful payee which is not the case here, as I am the rightful payee of my check and my spouse is the rightful payee of hers. 

We have a joint account, which is why one check was deposited into our checking account and the other into our savings account. The IRS made it clear that this matter is not in their hands, and that their official transcripts accurately reflect the reality : the refunds are legitimate. 

Since that date, Citi representatives have repeatedly told us the matter would be resolved in XXXX hours or within 72 hours, yet no resolution has occurred. 

Under the Expedited Funds Availability Act ( Regulation CC ), government-issued checks deposited into established accounts must generally be available by the next business day, unless a specific exception applies. None of those exceptions apply here, and Citi has not provided any written notice citing a Regulation CC exception or explaining the legal basis for freezing all these accounts.

Citibank own published policies also state that U.S. Treasury checks deposited into accounts with an established history should be available the next business day and that any extended hold must be justified in writing and limited in duration. 

I am attaching the official IRS CP53D letter and the IRS account transcripts for both my spouse and myself showing the issuance and validity of the refund checks as supporting evidence.

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