Consumer complaint received 2025-08-05 00:00:00
Product: Checking or savings account — Savings account
Issue: Managing an account — Deposits and withdrawals
Company: WEBSTER BANK, NATIONAL ASSOCIATION
State: AZ

Complaint narrative:
This complaint is against HSA Bank a division of XXXX XXXX XXXX XXXX XXXX HSA Bank address : XXXX XXXX XXXX XXXX XXXX XXXX This complaint is for a pattern of deceptive practices, misrepresentation, and abusive conduct related to our Health Savings Account ( HSA ). 

The bank has seized {$3700.00} in deposits, which became {$3700.00} after interest accrued. The bank states that the funds have been returned despite us never receiving the funds and refuses to give enough detail to verify the assertion. The bank refuses to discuss anything related to the account and has stated that no one in the company is willing to speak to us about anything related to it. 

The bank 's actions have been characterized by a series of lies and contradictions ( details following ), which I have documented. My family is in urgent need of these funds, which were earmarked out of our income for our medical expenses. 

The timeline of our interactions and the companys actions are as follows : XX/XX/year> : We received an email prompting verification of our application email, which we completed. 

XX/XX/year> : We received a " Welcome to HSA Bank '' email confirming our account was active. 

XX/XX/year> : An email confirmed our debit cards were on their way. 

XX/XX/year> : We received a confirmation email that the first {$200.00} participant contribution had been received. 

XX/XX/year> : We received an email from XXXX ( XXXX XXXX ) indicating an " important servicing need '' and requesting a call, this email was date stamped XX/XX/year>. Upon calling your Client Assistance Center on XX/XX/year>, we were informed that the account was frozen pending proof of ownership for our linked checking account. We were told a screenshot of the account would be enough proof. We were initially given an invalid email address over the phone ( XXXX ) for submission, so our initial attempt to submit the requested information failed. 

XX/XX/year> : We successfully replied to XXXX with the requested proof of ownership of our personal checking account. 

XX/XX/year> : We received an email confirmation of receipt of the document sent on XX/XX/year> from XXXX XXXX, Senior Associate, stating : " Thank you for contacting HSA Bank. We have received the documents and have forwarded them onto our Operations Department for processing. '' XX/XX/year> : We received an email titled " Start Using Your HSA Today. '' We were subsequently able to access our online account, and automatic contributions began. 

XX/XX/year> : An email confirmed our HSA investments were active, as the account had passed the {$1000.00} threshold. This meant that the funds would start earning interest. 

XXXX - XX/XX/year> : Throughout this period, despite the account being active and funded, the HSA debit card issued in the main account holders name consistently failed when attempted at various medical points of sale ( XXXX XXXX, a doctor 's office, and XXXX XXXX XXXX XXXX ). We were not able to use the funds, but thought this was not an issue, since at those places, pharmacists and admin staff all said it was normal for HSA cards to not work, to save the receipts and turn them into the website. 

XXXX XX/XX/year> : I attempted to log into the account several times to manually submit the receipts for past expenses but was consistently denied access, and my attempts to reset passwords did not work. No prior notification regarding this lockout was provided by HSA Bank. 

XX/XX/year> : As of today, their own automated phone system ( last accessed on XX/XX/year> ) explicitly states that a {$3700.00} adjustment distribution was made from our account on this date. However, it provides no information regarding the destination of these funds, nor does it indicate that the account is closed. 

XX/XX/year> : The only email communication received from HSA Bank related to any account change was a notification that " automatic contributions were cancelled on my behalf ''. No explanation for account closure or the alleged fund return was provided. 

XX/XX/year> ( Initial Call and Discovery of Closure ) : On this date, my husband made the first call to HSA Bank from his phone to inquire why we could not access the account. During this call, we were informed for the first time that HSA Bank had decided to " no longer do business with us, '' and that our funds were being returned to the originating account. We were inexplicably told to contact our employer, despite having opened the account independently. 

XX/XX/year> ( Multiple calls ) : I called several times to gain clarity, being stonewalled and even hung up on. Causing extreme XXXX  However, during XXXX of these calls, while trying to function through an XXXX XXXX, I spoke with a male customer service agent, the only one I have encountered at HSA Bank. He was the first to after telling me to contact my employer, and my telling him this account was not through my employer, acknowledged that our account was self-opened, not employer-sponsored. This agent stated that the funds were returned on XX/XX/year>, which directly contradicts the automated system 's report of a XX/XX/year> disbursement. He told me to contact my bank to see why they were holding the funds, I did contact them the same day. XXXX XXXX stated they were not holding funds, there were no pending transactions either. He further claimed that the account was flagged because HSA Bank had no record of receiving the initial checking account ownership verification a statement demonstrably false given their XX/XX/year>, email confirmation of having received it. He instructed me to send the verification again to XXXX. 

XX/XX/year> ( Email ) : Immediately following this call, I sent an email to XXXX, attaching the original XX/XX/year>, email confirmation of proof of ownership, screenshots of our XXXX XXXX bank transactions from XXXX to XX/XX/year>, showing no return of funds, and a detailed account of our treatment by their customer service representatives. Which was admittedly emotionally charged on my part. I received an automated reply confirming receipt of this email on the same day. No further communication has been received from HSA Bank regarding this submission. 

XX/XX/year> : In desperation, following our child 's recent XXXX and urgent need for these earmarked funds, I called again. Customer service representative XXXX refused to discuss the account whatsoever, again citing the account being " flagged for fraud or misuse '' and stating there was " no one at the company who would be willing to talk '' with me. This stonewalling caused me to have yet another XXXX XXXX XXXXn the phone. No resolution was found because they refuse to discuss anything. 

Our Position : We vehemently deny any " fraud or misuse. '' We diligently opened and fully funded this account with {$3700.00}, followed all instructions for account verification ( which HSA Bank confirmed receiving ), and repeatedly attempted to use the provided debit card, which consistently failed. 

HSA Bank 's actions demonstrate a profound lack of transparency, severe internal communication failures, consumer abuse, and mismanagement of customer funds : They failed to provide a functioning debit card for months. 

They abruptly locked us out of our account without any prior written notification or explanation. 

They have provided wildly contradictory information regarding the alleged return of our funds ( XX/XX/XXXX vs. XX/XX/XXXX ), and about the reason for account flagging ( unsubstantiated " fraud/misuse '' vs. demonstrably false claim of " no record of verification '' ). 

They continue to send automated emails ( monthly summaries, beneficiary prompts, account use advertisement ) implying an active account status, directly contradicting their verbal statements of having ceased business with us. 

They have failed to return our {$3700.00}, confirmed as " distributed '' by their own automated phone system, to our originating XXXX XXXX checking account, despite saying that they did, but refusing to give more detail so it could be traced. 

Their customer service representatives have been unhelpful, provided conflicting information, and ultimately refused to engage in any substantive discussion regarding our funds. 

Lastly, the only substantive information we have received regarding the status of our account and funds, has been verbal, with no recourse given. No written documentation has been furnished to XXXX regarding allegations of fraud or misuse, or what was done with our funds. This means HSA Bank has made sure that the majority of communications have no trail. This is an extremely shady business practice that Im certain has been honed on not just us, but likely other unfortunate customers. 

The stress and financial hardship caused by HSA Bank 's actions are immense, particularly given recent family medical emergencies that necessitate access to these earmarked funds. This situation is unacceptable and, frankly, appears to be fraudulent behavior on their company 's part. 

Attached I will provide all pertinent emails, as well as copies of bank statements showing funds outgoing to HSA Bank, but no funds returned. 

Note : We also filed this complaint with the Arizona Attorney General 's office on XX/XX/year>

Company response to consumer: Closed with explanation