Consumer complaint received 2025-07-02 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CAPITAL ONE FINANCIAL CORPORATION
State: TN

Complaint narrative:
I deposited my paper tax return on XX/XX/year>, via mobile app. I received the notification that funds would be available on XX/XX/year>. On XX/XX/year> I logged into my account to see that the funds had posted to my account but were still unavailable for use. I called to inquire about why I could not use the funds posted in my account and I was informed that they were unable to verify the check with the XXXX Treasury. The first supervisor I spoke with, whose name I can't remember, because I was too upset and forgot to write it down, told me that he had no way of contacting the IRS to verify the validity of the check and that I would need to wait until XX/XX/year>, to have the funds released. He kept telling me that they had concerns about the validity of the check and just kept repeating that same script over and over, refusing to explain further until I got upset and hung up. I did some research and found that the supervisor I spoke with had lied to me, that they have a website through the Department of the Treasury that verifies all checks. I went to that website and put in the details of the check and it came back as verified and paid. 

I took a half hour to calm down and called back. Spoke with XXXX in the XXXX XXXX department and he just kept repeating the same thing the previous supervisor had told me. That they had concerns about the validity of the check and funds would be released on XX/XX/year>. I explained that I had checked the treasury.gov website and saw that not only was the check showing verified, but that it had already been paid out. So how could the check bounce or be fraudulent. He just kept repeating the same thing over and over refusing to explain how they could be concerned that a check was invalid and would not clear, if the check had already cleared. I finally demanded to speak to another supervisor and was forwarded to XXXX. 

She tried explaining to me that the bank flagged it as high risk for validity simply because it was the first paper check deposited by the IRS by me. I countered by saying I understand that to be an issue the day I deposited it, but the system was now reporting it as paid and to explain how a check that has already cleared can still be seen as potentially invalid. She told me that the IRS might decide to take the money back, that they have had the IRS take back a check up to a year after the check cleared. How is that my problem? They are FDIC insured for a reason. I explained to her that I was depending on this money to keep me from loosing my utilities and cover basic needs until I can return to work. That not having access to my money was causing undue hardship. I was told that she would try to get it verified but no guarantees and I may still be waiting until XX/XX/XXXX to get my funds released. 

This is unacceptable. The bank should not be able to hold funds XXXX that legally belong to you, that have cleared on the senders end, just because you fear the sender might ask for it back. How is it legal for the banking system to show funds changed hands on both sides, IRS shows check was paid and it is processed and posted to my account, but somehow the funds are fraudulent and need to be held just in case they need sent back? 

This needs to be fixed asap. This money is the difference between me safely getting back to work and providing for my family and spending the next 2 months without electricity or food in a household with XXXX family members with XXXX XXXX and breathing problems. Having this money withheld from me like this will put my family in medical jeopardy.

Company response to consumer: Closed with explanation