Consumer complaint received 2025-10-07 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: CAPITAL ONE FINANCIAL CORPORATION
State: NY

Complaint narrative:
This is a Follow Up, Please Read It and Don't Close This Complaint : In XX/XX/XXXX, my checking account with Capital One was closed. At the time of closure, my account balance was {$6300.00}, consisting of two check deposits made on XX/XX/XXXX, for {$3200.00} and {$3000.00}. 

If a deposited check had been fake, altered, or otherwise unable to clear, the following would have occurred immediately : The check would not have cleared the Federal Reserve system ( the clearinghouse ).

Within a few business days, Capital One would have reversed the deposit and notified me of a returned check or deposit reversal. 

My account balance would have been adjusted downward to reflect the reversal. 

The bank might have frozen my account and reported the check to their fraud department. 

None of these actions occurred in my case. Both checks cleared and settled successfully, posted to my account, and remained available. Interest continued to accrue even after account closure, bringing the total balance to {$6300.00}, confirming the funds were legitimate. There is no record of a returned check, reversal, or chargeback. If the checks had been fraudulent, my account history would show a Returned Check Item Unpaid or Deposit Adjustment Reversal of Deposit, which it does not. 

Despite repeated requests and attempts to resolve this issue directly with Capital One via phone and email, the company has withheld these funds for over three months without explanation. Capital One has acknowledged my inquiries but has failed to release my funds or provide written confirmation of the checks issue date and mailing address. I have also submitted complaints to the Consumer Financial Protection Bureau ( CFPB ) and the Better Business Bureau ( BBB ), yet the issue remains unresolved. 

Given the significant length of time that has passed, the clear legitimacy of the funds, and Capital Ones ongoing failure to follow proper banking procedures, I am requesting immediate escalation for supervisory review. I demand that Capital One release my account balance of {$6300.00}, which reflects the principal and accrued interest, without further delay and provide written confirmation of compliance with federal banking regulations regarding the prompt return of customer funds. Continued withholding of these funds is unacceptable and constitutes a failure to comply with established banking rules. 

Furthermore, Capital Ones ongoing refusal to release these funds may constitute violations of federal banking regulations, including Regulation CC regarding the timely availability of deposited funds. I have also submitted a complaint to the New York State Attorney Generals Office to address this matter, as my funds continue to be withheld. This is particularly concerning given that Capital One was recently involved in a settlement of a class action lawsuit, in which the company agreed to a {$420.00} million payout to resolve allegations that it failed to pay adequate interest on its 360 Savings accounts between XXXX and XXXX. I request that the Bureau take this into account and ensure that Capital One is held accountable for any noncompliance. Prompt action is necessary to prevent further delay, financial harm, or additional regulatory or legal enforcement actions against the bank. 


I am escalating my complaint regarding Capital Ones improper withholding and redirection of my fully cleared account balance totaling {$6300.00}. 

Once Again On XX/XX/XXXX : I deposited two checks via ATM totaling {$6300.00} into my Capital One 360 checking account ( ending in XXXX ). 
These deposits were posted and cleared on XX/XX/XXXX, as confirmed in my account transaction records. My XX/XX/XXXX bank statement shows an ending balance of {$6300.00}, reflecting cleared funds and accrued interest demonstrating that the funds were neither reversed nor held at that time. 

Despite this, on XX/XX/XXXX, I received a letter from Capital One stating that the remaining funds will be sent back to the originating bank, and that the bank is unable to release the remaining funds to me. No legal hold, fraud claim, or law enforcement request was cited. Capital Ones explanation does not align with federal banking regulations governing the handling of cleared deposits. 


Regulatory Violations Cited : 1. Regulation CC ( 12 CFR Part 229 Availability of Funds ) : Requires that financial institutions make deposited funds available within specified timeframes and prohibits indefinite holds after funds have cleared. 
The funds in question were available, posted, and earning interest for over two months, making any subsequent reversal or redirection inconsistent with Reg CC. 
2. Uniform Commercial Code 4-214 Right of Chargeback : Banks may reverse a credit only if a check is returned unpaid or provisional settlement fails. 
Once final settlement is received ( as in this case ), the right of chargeback expires. Returning cleared funds to an originating bank months later violates this statute. 
3. Potential Breach of Fiduciary and Contractual Duty : Capital Ones deposit agreement does not permit return of cleared funds absent a valid legal or regulatory reason.

The refusal to release my balance causes direct financial harm and appears to contradict Capital Ones stated compliance with federal procedures.

Company response to consumer: Closed with explanation