Consumer complaint received 2025-03-07 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: SANTANDER HOLDINGS USA, INC.
State: MA

Complaint narrative:
To: Consumer Financial Protection Bureau (CFPB); XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX; Office of the Comptroller of the Currency (OCC); Federal Reserve Board. 
 

From: XXXX XXXX XXXX, Santander Bank Customer. 
Date: XXXX XXXX XXXX 

Complaint against Santander Bank for denial of access to available funds, possible racial discrimination, and multiple violations of banking and consumer protection laws. 

Dear Sir or Madam: 

I am writing to formally lodge a comprehensive complaint against Santander Bank, N.A. for its actions on XXXX XXXX XXXX which resulted in my wrongful denial of available funds, public humiliation, and suspected racial discrimination. The following outlines the factual timeline of events, the laws and regulations I believe were violated, and the remedies and actions I am requesting from your agencies. I have supporting evidence of these events (including recorded phone calls with Santander customer service and screenshots of my online banking showing funds availability and account restrictions), which I can provide upon request or attach herewith. 

1. Factual Timeline of Events XXXX XXXX XXXX XXXX XXXX EFT  Deposit Marked Available: I received an Electronic Funds Transfer (EFT) into my Santander Bank account around XXXX XXXX XXXX XXXX XXXX XXXX. This deposit was reflected in my account balance and was marked as available for use immediately. There were no indications of any holds or restrictions on these funds in my online banking portal or via any notification from the bank. 

 

XXXX XXXX  New Account Opened at XXXX XXXX & Denial of $9,000 Withdrawal: Around XXXX XXXX the same day, I visited Santander Banks XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX) to open a new checking account. After opening this account, I attempted to withdraw $9,000 in cash from my available funds. Despite the funds showing as fully available in Santanders system, the branch manager refused to allow the withdrawal. I was denied access to $9,000 of my own money, with no valid explanation. The manager only cited that it was a large amount and gave no written notice of any hold or issue. This denial occurred even though the money was inside Santanders network (not an out-of-bank transfer) and thus should have been accessible to me without delay. I was taken aback and concerned, as there was no legal hold on the funds and no justification provided for the refusal. 

 

Approximately XXXX XXXX   Successful XXXX XXXXXXXX  Transfer Demonstrating Funds Accessibility: Immediately after being denied the cash withdrawal at the branch, I initiated an electronic transfer to test whether my funds were truly available. I used XXXX  (a digital payment service) to send XXXX from my Santander account to another account. This XXXX  transfer was completed successfully without any issues or holds. The success of this transfer confirmed that the banks systems recognized the funds as unrestricted and available. In other words, Santander itself allowed me to electronically move part of the money out, which contradicts the branch managers refusal to let me withdraw cash. This inconsistency left me confused and concerned about why I was being prevented from accessing a larger portion of my money in person. 

 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Branch & Denial of $XXXX  Withdrawal: Still needing access to my funds, I then traveled to Santanders XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX later that afternoon. I decided to request a smaller amount, attempting to withdraw $XXXX  in cash from the same account. To my shock, I was again denied access to my money by the branch manager at this second location. The managers stated reason for denying the withdrawal was that because the deposit was made that same day, it had to clear. I informed the manager that the deposit was an EFT (not a check) and was already marked as cleared/available per the banks own system. In fact, I called Santanders customer service while at the branch to double-check the status of the funds. The customer service representative confirmed that the funds were fully available in my account with no holds or restrictions. I relayed this information to the XXXX XXXX XXXX XXXX and staff, yet they still refused to allow the withdrawal. They provided no written notice or valid reason for disallowing the cash withdrawal of already-available funds. This conflicting information (branch insisting the money isnt accessible vs. customer service and online system indicating it is) was not only frustrating but is indicative of improper and inconsistent handling by the bank. 

 

Branch Staff Threaten Police Involvement  Public Humiliation: When I respectfully persisted, asserting my right to access my own money and pointing out that no legitimate hold existed, the XXXX XXXX XXXX staff escalated the situation. Instead of resolving the discrepancy or honoring the availability of funds, the manager threatened to call the police to remove me from the premises if I did not leave without my cash. I was treated as if I were a suspicious person or a criminal for simply trying to withdraw money from my own account. This was said loudly in the bank, in front of other customers and employees, causing me extreme embarrassment and public humiliation. The threat of police intervention was entirely unwarranted given that I was the rightful account holder asking for a routine service. This incident left me feeling traumatized, harassed, and discriminated against. I was made to feel as though I had done something wrong  when in fact Santander Bank was in the wrong for denying me my funds. 

 

Account Restrictions Imposed After Branch Visits: Following the confrontations at the branches, I discovered that my Santander account was suddenly restricted from external transactions. In the evening on XXXX XXXX XXXX I noticed I could no longer perform certain transactions that I had been able to earlier. For example, I attempted to use my debit card and also initiate another external transfer, but these transactions were declined or blocked. Prior to visiting the branches, my account was fully functional (as evidenced by the successful XXXX  transfer and other internal movements of funds I made that day). It appears that after I challenged the branch managers about my withdrawals, the bank (or the branch personnel) placed an unjustified freeze or hold on my account without notifying me. I received no email, no phone call, and no written communication about any account restriction; I simply discovered it when my transactions started failing. This effectively locked me out from freely using my money externally, compounding the harm already done. 

 

Inability to Make Purchases (Phone Charger Incident) & Additional Distress: As a direct consequence of these unwarranted account restrictions, I was unable to carry out even small daily transactions, which caused further hardship and embarrassment. Notably, I could not purchase a phone charger on the evening of XXXX XXXX because my card was declined due to the account restriction. I was stranded without a charged phone and had to reach out to a friend/family member for emergency financial help to pay for the charger. This experience was humiliating  I had ample funds in my bank that should have been accessible, yet I was left unable to pay for a basic necessity because Santander improperly locked down my money. The overall ordeal not only caused me financial inconvenience but also significant emotional distress, as I felt helpless and wrongly suspected or punished by the bank. 

Throughout all these events, Santander Bank never provided any written notice or valid explanation for denying access to my funds. The money was confirmed available by their own systems and representatives. Yet I was treated with suspicion, stonewalled in person, threatened with law enforcement, and then quietly restricted from using my account. I believe that my race played a role in how I was treated by the branch personnel (I am a person of color, and I felt that I was being judged or profiled when I tried to withdraw a large sum, as though I were not entitled to my own money). There were no objective, non-discriminatory reasons to block my withdrawals, especially after confirming funds availability. 

In summary, the factual record shows a disturbing pattern of Santander Banks misconduct on XXXX XXXX XXXX: despite having a valid deposit and clear available balance, I was repeatedly denied my right to withdraw funds, met with inconsistent and false explanations, subjected to threatening and discriminatory treatment, and ultimately cut off from accessing my account externally. These actions are not only unjust but also illegal, as detailed in the next section. 

2. Legal Violations 

Santander Banks actions on XXXX XXXX XXXX violated several banking regulations, consumer protection laws, and civil rights statutes, as well as basic principles of fairness and duty of care. I urge the regulatory and enforcement agencies to consider the following violations: 

Banking Law Violations 

Regulation CC (12 C.F.R. Part 229) and the Expedited Funds Availability Act (EFAA, 12 U.S.C.  4001 et seq.)  Under federal law, when a depository institution lists funds as available in an account, those funds must be accessible to the customer. If the bank chooses to place an extended hold on a deposit (for reasons allowed under the law, such as a large check deposit or a new account), it is required to provide written notice to the depositor, including the reason for the hold and when the funds will be made available  

helpwithmybank.gov. In my case, the EFT deposit was marked available and should have been withdrawable on demand. Santander Bank failed to provide any notice of a hold or delay. In fact, there was no legitimate hold placed in their system at all  their customer service confirmed the funds had no restrictions. By denying cash withdrawals of funds that were officially available, Santander violated Regulation CCs core requirement of making funds available as disclosed. Additionally, if the bank internally decided to treat my deposit as an exception (for example, treating my new account or the large amount with extra caution), they never informed me in writing or otherwise, as mandated by law. This lack of notice and the wrongful withholding of my money is a direct violation of the EFAA and Reg CC. Santanders actions effectively constituted a secret, undisclosed hold on my funds, which is unlawful. 

Unfair, Deceptive, or Abusive Acts or Practices (UDAAP)  12 U.S.C.  5531  The Dodd-Frank Wall Street Reform Act prohibits banks and financial institutions from engaging in unfair, deceptive, or abusive acts or practices toward consumers. Santander Banks conduct was unfair and deceptive in multiple ways. First, the bank indicated to me (through the mobile app/online banking and customer service) that my funds were available, yet their branch staff acted in a manner that made this representation false by preventing access. This inconsistency and internal miscommunication created a misleading situation for me as a consumer. Second, the arbitrary denial of service (without any valid explanation or policy-based reason given) is inherently unfair  it caused substantial injury to me (inability to access my money, missed payments/purchases, emotional distress) which I could not reasonably avoid, and there was no legitimate benefit or justification for the banks action. The threatening of police and treatment I received could also be considered abusive, as it was an intimidation tactic that has no place in a customer service context. By violating my trust and refusing to let me use my funds despite telling me they were available, Santander engaged in a deceptive practice. By imposing secret restrictions and humiliating me for trying to withdraw money, they engaged in an unfair and abusive practice. These actions violate 12 U.S.C.  5531s prohibition on UDAAP. I urge the CFPB and relevant regulators to investigate Santander for these unfair and deceptive practices that harmed me as a consumer. 

Civil Rights Violations 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX  law guarantees that all persons shall have the right to the full and equal accommodations, advantages, facilities, and privileges of any place of public accommodation, without discrimination on the basis of race, color, or other protected characteristics  

XXXX  A bank branch is a place of public accommodation under state law, as it provides services to the general public. In this incident, I was effectively denied the normal services provided to customers (specifically, withdrawal of funds and respectful treatment during a banking transaction). I strongly believe that my race was a factor in the way Santanders branch managers dealt with me. There was no legitimate business reason to refuse my withdrawals since the funds were verified and available; thus the differential treatment I received (compared to how other customers are treated when withdrawing money) points to racial discrimination. The managers quickness to assume a posture of suspicion and even threaten police involvement suggests that they saw me (a person of color) as someone unworthy of the same trust and courtesy afforded to other (non-minority) customers. This is a textbook violation of XXXX XXXX XXXX which forbids making any distinction or restriction in service based on race. Santander Bank is liable under this law for denial of services and privileges of its branch to me on account of my race, causing me to be a person aggrieved under the statute. I am filing this complaint with the XXXX XXXX XXXX XXXX XXXX  to seek accountability for this violation of my civil rights. 

42 U.S.C.  1981 (Federal Civil Rights Act of XXXX, as amended)  This federal law guarantees equal rights under the law to make and enforce contracts regardless of race. Specifically, 42 U.S.C.  XXXX  states that All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts... as is enjoyed by white citizens  

law.cornell.edu. It further defines make and enforce contracts to include the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship  

law.cornell.edu. In my case, my relationship with Santander Bank (as an account holder) is a contractual one  I have a contract governing my bank account. By denying me the benefit of accessing my funds, the bank failed to allow me the enjoyment of the contracts benefits on equal terms. If Santanders employees decision to block my withdrawals and restrict my account was motivated (even in part) by my race, then the bank denied me the full and equal benefit of the banking contract that a white customer would enjoy, violating XXXX. The threatening of police and differential treatment worsens this breach of equality. I was not allowed to enjoy my contract (my bank account services) in the same manner as others, due to discriminatory bias. This is actionable under 42 U.S.C.  XXXX, and I ask that regulators refer this aspect to the Department of Justice or take appropriate measures to enforce federal civil rights laws in banking. 

Negligence and Emotional Distress 

Negligent/Improper Handling of Account (Banks Breach of Duty)  Santander Bank had a duty to handle my deposit and account in accordance with standard banking practices and legal requirements. Instead, the bank negligently mishandled the situation: they either erroneously flagged my valid deposit or account for fraud without cause, or failed to train their managers on funds availability rules, resulting in my account being unjustly frozen. The lack of communication or rationale for their actions indicates a breach of the duty of care a bank owes its customer. This negligence caused me direct financial harm (I couldnt access my money when needed, impacting my transactions) and foreseeable emotional harm. 

 

Intentional or Negligent Infliction of Emotional Distress  The actions of Santanders employees went beyond mere inconvenience; they were outrageous and traumatic. Threatening to involve police over a customer attempting to withdraw their own cleared funds is extreme and outrageous conduct. This, coupled with the public humiliation I suffered and the sudden cutting off of my access to money, caused me severe emotional distress. I was left feeling distressed, anxious, and degraded by the experience. Santander Banks conduct was either intentional (in an effort to intimidate me) or grossly reckless in disregard of the high probability that it would cause emotional distress. As a result, I suffered not only financial disruption but also psychological and emotional trauma, for which the bank should be held accountable under principles of tort law. 

Every one of the above points represents a serious violation of my rights as a consumer and as a citizen. Santander Banks failure to follow basic laws (like funds availability rules and anti-discrimination laws) and the mistreatment I endured are unacceptable. These incidents demonstrate both institutional failings (in policies or training) and possibly individual prejudice by branch personnel. I ask that each regulatory and enforcement body address the aspects relevant to their jurisdiction. 

Conclusion 

Thank you for your attention to this serious matter. What happened to me on XXXX XXXX XXXX, was deeply disturbing and unacceptable for a banking institution in this country. I am seeking justice not only for myself but to ensure that no other customer faces this kind of wrongful denial of their own funds or discriminatory treatment in the future. I trust that the CFPB, state regulators, XXXX, and other authorities will take my experience seriously and investigate Santander Banks practices thoroughly. 

I have preserved evidence supporting every aspect of my account (including recorded phone calls with Santander customer service confirming my funds were available, and screenshots from my Santander online banking showing the deposit marked as available and later screenshots showing payment failures due to the restriction). I am ready to provide this evidence to investigators or attach it to this complaint as needed. Please let me know if any additional information is required. 

I respectfully ask for updates on the status of this complaint and the actions taken. I can be contacted at XXXX XXXX XXXX XXXX. I appreciate your time and prompt attention to my case, and I look forward to a resolution that addresses the wrongs committed by Santander Bank. 

Sincerely, 

 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX 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 explanation