Consumer complaint received 2025-01-17 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: CAPITAL ONE FINANCIAL CORPORATION
State: CA

Complaint narrative:
Dear CFPB, I am CEO of XXXX XXXX XXXX ( XXXX ), a law firm located in XXXX. 

On or about XX/XX/XXXX, XXXX opened Business Checking Account # XXXX ( the Account ) with CapitalOne as the operating account for XXXX 's business. The Account was in use between XX/XX/XXXX and XX/XX/XXXX. 

On XX/XX/XXXX, I received a phone call from phone number ( XXXX ) XXXX. Upon answering the call, I was told that CapitalOne is calling to verify account information, and that before the verification questions can be asked, I must verify certain information about myself on the call. The CapitalOne representative identified himself as XXXX. 

Given the current climate of frequent phone scam, phishing attempts and other deceptive efforts, and because the FCC, other government agencies and many major companies regularly issue warnings to the public advising consumers not to disclose confidential information or account details, I was naturally skeptical of the authenticity of the phone call. For this reason, during the phone call, I asked XXXX to provide information to confirm that XXXX was calling on behalf of CapitalOne and with the banks authorization. XXXX replied that I can call him back at his CapitalOne phone number, XXXX, and that I can find such phone number on CapitalOnes website and use a XXXX search to verify the authenticity of such phone number. I promptly checked the authenticity of the phone number, as instructed, and called XXXX at such number XXXX ( XXXX ) minutes later on the same day. Upon reaching a representative, I was told that XXXX is unavailable, and that CapitalOne does not need any information from me or my business at that time. Further, I was told that should CapitalOne require any information from me in the future, CapitalOne will call back. A return call was not received from CapitalOne to request any information subsequently. 

Between XX/XX/XXXX and XX/XX/XXXX, I continued to use the Account. I did not receive any communication from CapitalOne requesting any information. I also did not receive any communication from CapitalOne to alert me in any way that CapitalOne had any issues of suspicions with the Account. XXXX 's clients continued to make payments to the Account for amounts due and owing to XXXX, and I continued to use the funds in the Account to operate XXXX 's business. As of XX/XX/XXXX, there was a balance in the Account totaling approximately {$53000.00}. 

On XX/XX/XXXX, I logged onto the online banking website to make payments from the Account, but to my shock and dismay, I saw that the Account showed a balance of {$0.00}, even though such balance should have been {$53000.00}. I immediately called CapitalOne and was informed that the Account was scheduled for closure on XX/XX/XXXX. Upon asking why, I was told that I failed to provide required information to CapitalOne. I then offered to provide any information that XXXX have been required by Capital One, as I had offered when it attempted to speak to XXXX on XX/XX/XXXX, but was told once more that no information was required. I then requested that CapitalOne wire or ACH MLC 's funds to another institution, but CapitalOne 's representative stated that this was not permitted. I was also advised that upon the formal closure of the Account, a check for the balance in the Account would be mailed to XXXX within XXXX business days. 

CapitalOne 's withholding of XXXX 's funds placed XXXX in a very difficult financial situation. I called CapitalOne several times in an attempt to resolve the situation and have the Account closure reversed or the funds transferred, but such efforts fell on deaf ears. I was told the closure can not be reversed and no outgoing wires or XXXX transfers will be permitted. I asked that the check be mailed out as soon as possible rather than after XX/XX/XXXX, and that it be mailed using an expedited, trackable method ( e.g. overnight mail ). On XX/XX/XXXX, I was told that the check is being sent that day or the next day, via regular mail. 

In the meantime, certain required and prescheduled payments of mine to third parties, including tax payments due, were declined for insufficient funds due to CapitalOnes gross negligence, misappropriation and conversion of XXXX 's funds. This includes, for example, a payment of payroll tax in the amount of {$5500.00} to the California XXXX XXXX XXXX. This caused additional problems for XXXX with its payroll provider, including incurring insufficient funds penalty payment, and potentially impairing XXXX 's credit rating. 

On XX/XX/XXXX, I finally received a letter from CapitalOne, notifying of the Account closure and stating You can close your account before XX/XX/XXXX. Otherwise, we'll close it and forward your money to a linked external account if you have XXXX. If you don't have a linked account, you'll receive a check in the mail within XXXX business days from closure at the address we have for you on file. This was a false statement, since I had several linked accounts, and the funds were not forwarded to any such accounts. Moreover, all of my requests to wire or ACH its funds to another institution or account were repeatedly refused. 

As shown on the enclosed copy of the envelope, the letter was received at my XXXX XXXX office on XX/XX/XXXX, less than a full business day before the funds had been made unavailable by CapitalOne, further supporting the complete lack of prior notice and common courtesy to XXXX. It is wholly unreasonable to expect that a business can halt its banking operations on such short notice ( less than a day, even assuming I had had access to such letter immediately upon receipt, which I did not ), particularly right before XXXX XXXX when most people are away for the holiday. I did not receive such letter in-hand until XX/XX/XXXX. 

During a phone call on XX/XX/XXXX, a CapitalOne representative informed me that CapitalOne had made a mistake on XX/XX/XXXX by providing me with the incorrect phone number for me to return CapitalOnes verification call. On the call I had received from CapitalOne on XX/XX/XXXX, CapitalOne mistakenly provided me with the number XXXX, which goes to CapitalOnes small business department, instead of to the department that is responsible for the verification of accounts. This shows an utter lack of proper process on CapitalOnes part in connection with business accounts, and points to sheer incompetence on the part of CapitalOnes employees. 

To date, I have incurred more than XXXX hours of my own professional time, and at least XXXX hours of XXXX 's accountant 's professional time, to address CapitalOnes gross negligence and criminal conduct, and have incurred numerous additional costs for this, such as the above-mentioned tax penalties, the costs of opening an account with a new institution, the cost of buying and then disposing of CapitalOne checks that became worthless upon account closure, the cost of buying checks from a new financial institution with whom I had to open a new account, etc. I also suffered several embarrassment and loss to professional reputation due to having to notify XXXX 's clients of an unexpected account closure and additional lost professional time in setting them up to pay into a new account for funds due to XXXX. 

On or about XX/XX/XXXX, I received CapitalOne 's check for XXXX 's funds in the amount of {$53000.00}. I took it to the new institution with whom I'd opened a new account and deposited it as soon as I received it. It then took 3 days for the check to clear. I did not have access to the funds until the check cleared, which happened on XX/XX/XXXX. 

The result is that CapitalOne arbitrarily withheld access to {$53000.00} for a total period of 19 days. They had no reasonable cause to do so. 

Now, to top it off, it is XX/XX/XXXX and I have attempted for the past week to login to CapitalOne to download the business account statements for the time period in which the account was open ( XXXX through XX/XX/XXXX ). These statements are not available and CapitalOne representatives have said on the phone that they are having a " technical issue ''. This bank appears to not even be willing or able to make basic bank statements available during tax season. I am beyond shocked and appalled at their gross negligence and callous disregard of basic laws, regulations, generally accepted business practices and common decency.

Company response to consumer: Closed with explanation