Consumer complaint received 2025-04-18 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: CITIBANK, N.A.
State: TX

Complaint narrative:
I am filing this complaint due to Citibank mishandling federal IRS refund funds and failing to disburse them after my account was closed. 

On or around XX/XX/year>, my IRS tax refund in the amount of {$3000.00} was deposited into my Citibank account. Prior to that, I had deposited a {$950.00} check from a business for plumbing services. That check was returned unpaid, and my account was blocked. After speaking with Fraud Prevention and providing information about the check, the account was unblocked, and the funds reappeared. I confirmed with the check issuer that the funds were marked cleared after I had told them before that the check had been reported as unpaid. I contacted Citibank customer service to ask whether the check had truly cleared. The rep told me that Fraud Prevention was closed but confirmed that everything looked good and that the check appeared cleared.

Roughly a week later, my account was blocked again, due to the check not clearing and I was informed my account would be closed. I was also told no further deposits or transactions would be accepted. I specifically asked what would happen if my IRS refund was sent to that account, as I had told them that when I filed my taxes I chose my Citi account as a direct deposit option for my refund. I was told ( verbally and in writing ) that any deposit would be rejected and so the deposit would be returned to the IRS. 

Despite these clear statements, the IRS refund was accepted and applied to my account, after the account had been restricted and set for closure since the beginning of XXXX. I followed up multiple times, expressing concern about my IRS refund and asking for confirmation that it would be rejected. Each time I was reassured that due to the block and closure, deposits would not be accepted. However, Citibank failed to reject the deposit and has not returned the funds or mailed me a check.

My account was successfully closed around Thursday of last week. Three days ago ( approximately XX/XX/XXXX ), I received a call from XXXX Executive Response Unit telling me that if I did not receive the check by XX/XX/year>, I should call back. I called again today ( XX/XX/XXXX ) as instructed, and the representative was unable to confirm whether the check had even been mailed. She attempted to reach the person assigned to my case but was unsuccessful. 

Right after the call, I received a XXXX complaint response from Citibank saying they are still investigating and will respond within 15 days even though my account has already been closed and no one has been able to confirm what happened to my IRS refund check. 

The amount I am expecting is {$2000.00} which reflects the IRS refund minus the balance I owed Citibank. I want to clarify that I have no issue with them deducting what I owed from the refund. In fact, I inquired multiple times about how to pay the balance, and I was told I had to wait to receive a collections letter since no deposits or payments were allowed on the account due to its restricted status. 

This situation is distressing. I urgently need access to these federal funds. It appears Citibank is attempting to delay or avoid responsibility by passing me between departments without resolving anything. The refund should have been rejected based on their own restrictions, but instead, they accepted it and are now holding my money.

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