Consumer complaint received 2025-11-01 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Cashing a check
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
CFPB XXXX Citibank Funds Hold & Discrimination Against Minority Business Owner My name is XXXX XXXX, I am a minority woman small business owner who launched my company, XXXX XXXX XXXX, in XX/XX/year>. As part of a legitimate business transaction, I issued Check # XXXX in the amount of {$6000.00} from my XXXX XXXX business account to a supplier, XXXX XXXX, on XX/XX/year>, for the purchase of a XXXX silk rug. 

The check cleared, and the funds were fully withdrawn from my account on XX/XX/year>, but the money was never released to the recipient. Instead, Citibank froze XXXX XXXX Citi bank account for more than XXXX months, and the {$6000.00} remains in limbo, with no written explanation or formal notice provided to either of us. 

This has caused me significant financial harm, as I was relying on this transaction to cover expenses, including rent, and to build early trust with both my supplier and customer. Instead, I have lost the buyer, the seller is questioning my legitimacy, and my business reputation is now at risk. 

The seller and I have contacted Citi bank multiple times and visited a branch in person, only to receive inconsistent, incomplete answers from staff. Most troubling is that Citi refuses to provide anything in writing, and their customer service agents have either refused to speak about the issue or hung up on us during calls. 

The only explanation weve been given again, only verbally is that the check was flagged because the phone number printed on the check is under my personal name, not the business. That phone number is my personal cell, which I use for business purposes and is part of a low-cost family plan. Citi is demanding I : XXXX ) Open a new mobile plan under my business name XXXX ) Wait XXXX billing cycles ( approximately XXXX months ) XXXX ) Provide XXXX statements showing the business owns the phone number XXXX ) Then they will consider releasing the funds This is a completely unreasonable and undocumented requirement, especially for a new small business. Ive received no formal documentation from Citi to justify any of this. 

Additionally, my own bank XXXX XXXX has told me that Citi never submitted the payee information for this check for over XXXX months, which they said is highly irregular and improper practice. XXXX XXXX has since initiated a formal dispute on my behalf, but theres no clear timeline for resolution, and I am still left with XXXX clarity. 

All of this makes XXXX behavior appear arbitrary and targeted, and Im starting to feel like Im being treated this way because Im a minority entrepreneur with a foreign-sounding name, trying to grow a small business with limited resources. 

I am formally requesting : A full, written explanation from Citibank outlining : - Why the check was flagged - Why the recipients account was frozen - Why no documentation has been provided to me or the payee - Why my account was described to the payee as bad - Immediate release of the {$6000.00} or a legally valid reason for the ongoing hold - Written confirmation that my account is in good standing and no such bad account designation exists - An investigation into whether XXXX  conduct constitutes discriminatory or harmful practices against minority business owners - Compensation or remediation for the financial and reputational harm caused by XXXX  actions I am doing my best to build an honest business, and this incident has completely derailed my ability to operate or plan. If not resolved swiftly, I will be forced to pursue legal action to recover the funds and hold Citibank accountable. 

I have attached supporting documents including : - A copy of the check - A screenshot confirming the withdrawal from XXXX XXXX on XX/XX/year> - A picture of my company sign with my phone number on it Thank you for your urgent attention to this matter. 

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 monetary relief