Consumer complaint received 2026-01-06 00:00:00
Product: Checking or savings account — Savings account
Issue: Managing an account — Deposits and withdrawals
Company: CITIBANK, N.A.
State: NY

Complaint narrative:
I am a retired individual and a long-time Citibank customer XXXX I am submitting this complaint regarding an unlawful account restraint and unauthorized withdrawal that Citibank permitted on my savings account based solely on an unsubstantiated allegation by a third-party debt collector, XXXX, XXXX XXXX XXXX XXXX 

On XX/XX/XXXX, Citibank placed a restraint on my savings account and, while the account was frozen, allowed an unauthorized transaction labeled Other Debt to be withdrawn from my account. This transaction was not authorized by me and occurred while I had no access to my funds. The total amount unlawfully removed was {$3500.00}. 

Citibank did not provide me with any notice of garnishment, restraining notice, court documentation, judgment, execution, or any correspondence explaining the source or legality of this restraint. When I contacted Citibank immediately on the date of the occurrence, I specifically requested transparency and documentation, including any notice identifying a court, case number, or legal authority. Citibank failed to provide any such documentation and instead merely advised me verbally that the restraint allegedly originated from a third-party debt collector, XXXX, XXXX XXXX XXXX XXXX and directed me to contact them directly. 

At no point did I receive any communication from this third party, nor did Citibank provide proof that I owed any debt to anyone. To my knowledge, I do not owe any such debt. As a customer, I was placed into a procedural loophole : Citibank withheld my funds without explanation, and the alleged collector never contacted me. This lack of notice, documentation, and due process has caused significant stress and hardship, particularly as a senior relying on fixed income. 

The funds restrained and withdrawn were entirely pension funds. My pension income was deposited in XX/XX/XXXX, and XXXX own records clearly reflect the source of these funds as pension income. I later transferred those pension funds into my savings account, where they remained untouched until Citibank froze the account on XX/XX/XXXX. Citibank had full visibility into every transaction and internal transfer and should have clearly identified these funds as exempt pension funds under New York law. 

My savings account balance from the statement period XX/XX/XXXX through XX/XX/XXXX clearly reflects a remaining balance of {$7500.00} prior to the unlawful restraint. Citibank froze this pension-fund savings balance and then permitted an unauthorized withdrawal while the account was restricted. I did not authorize any withdrawal, and Citibank allowed it to occur. 

Citibank also failed to provide any legally required notice before or after the restraint, despite my direct requests. I only became aware of the transaction by later accessing downloaded PDF statements. I did not gain full access to and visibility of these records until late XXXX, which delayed my ability to conduct a thorough investigation into what had occurred. 

This situation constitutes a serious failure of due process, transparency, and consumer protection. It is especially troubling given my status as a retired individual and long-time customer. The conduct involved represents an abuse of the banking system and has caused significant emotional and financial hardship.

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