Consumer complaint received 2025-11-14 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Money was taken from your account on the wrong day or for the wrong amount
Company: CITIZENS FINANCIAL GROUP, INC.
State: PA

Complaint narrative:
I am filing this complaint because Citizens Bank and XXXX failed to protect my business account after XXXX fraudulent chargebacks made by the same customer ( XXXX XXXX ). I completed XXXX legitimate services for this customer : XXXX for {$1800.00} and another for {$1600.00}. The customer disputed both transactions claiming fraud. 
Citizens Bank initially removed the {$1800.00} from my account, but after I provided photos, evidence, and proof of the work performed, Citizens Bank concluded that the {$1800.00} transaction was legitimate. I recently received a letter from Citizens confirming that this dispute is fully closed in my favor. 
Before the second chargeback of {$1600.00} occurred, I called Citizens Bank and warned them that the same customer would likely dispute the second payment. A Citizens representative told me that they would place a block on my account to prevent the {$1600.00} from being withdrawn. Despite this promise, Citizens allowed the {$1600.00} to be removed from my account anyway. The block was never honored, and my account went into a negative balance. 
After the withdrawal, I immediately contacted Citizens Bank again, but I was provided no explanation for why the block failed. Citizens Bank took no responsibility for their mistake. I also contacted XXXX, who told me that because the payment was processed through a payment link ( a method XXXX provides ), I would likely lose the dispute. They also told me that the same risk applies to tap payments. Their responses were inconsistent, unhelpful, and unfair. 
The most important detail is that both transactions were for the same customer, same job site, same services, and supported by the same evidence. Citizens Bank recognized the first transaction as legitimate, but denied the second without any reasonable justification. I have spent over a month sending documentation, photos, and proof without receiving a proper resolution. 
Because Citizens Bank allowed the {$1600.00} withdrawal despite promising to block it, my business account remained negative. As a result, I was charged overdraft fees, returned payment fees, and several of my business-related automatic payments were declined. These financial damages were a direct consequence of Citizens Banks failure to protect my account as they had promised. I am requesting that all overdraft fees, returned payment fees, and any related charges be fully refunded, in addition to returning the {$1600.00} that was wrongfully taken. 
Additionally, because my Citizens Bank business account remained negative due to the banks failure to block the withdrawal, I could not continue operating my business through that account. I was forced to open a new business account with another bank ( XXXX ) in order to continue receiving payments from customers. This interruption created additional burdens and harmed my business operations. I am requesting that this operational impact be taken into consideration as part of the resolution of this complaint. 

Furthermore, XXXX informed me that because the payment was processed through a link and not by physically inserting the customers card into the terminal, I would likely lose the dispute. I was also told that the same risk applies to tap transactions. This is extremely concerning because these payment methods were provided and promoted by XXXX as standard, secure options for merchants. It is unreasonable and misleading for XXXX to offer these payment methods to businesses while simultaneously refusing to protect merchants when these same methods are used. As a business owner, I followed the tools and payment solutions that XXXX provided. I did not invent these methods, and I relied on XXXX to offer secure and reliable transaction options. Their statements show that these payment methods leave merchants unprotected, which is both unfair and deceptive.

Company response to consumer: Closed with monetary relief