Consumer complaint received 2025-02-23 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
Urgent Complaint Against Citibank Unlawful Account Closure and Withholding of Funds Dear Consumer Financial Protection Bureau, I am writing to formally file a complaint against Citibank regarding the unjust closure of my business account and the unlawful withholding of my funds. As a small business owner, this situation has placed me in an extremely difficult financial position, preventing me from paying my employees and covering essential expenses.

Background of the Issue- I operate a small business and maintain a business account with Citibank XXXX On XX/XX/year>, I received a wire transfer from a customer, which was processed and cleared without any issues. However, on XX/XX/year>, Citibank abruptly closed my account, claiming that the wire was fraudulent. 

After speaking with my customer, they confirmed that the wire was legitimate, that no recall request was made, and that they were willing to communicate directly with Citibank to clarify any concerns. Despite this, Citibank refused to acknowledge this information and proceeded to freeze my account and withhold nearly {$1.00} XXXX of my funds without proper justification.

Violation of My Rights Under EFAA- Citibanks actions appear to be in violation of the Expedited Funds Availability Act ( EFAA ), which establishes clear guidelines for the availability of deposited funds and protects account holders from unreasonable withholding of their money. Given that : 1. The wire transfer was received and cleared on XX/XX/year>, without any issue at the time. 
XXXX. Citibank did not notify me of any issue until XX/XX/year>, nearly XXXX weeks after the funds had cleared**. 
XXXX. The transaction was legitimate, as confirmed by my customer, who is willing to speak directly with Citibank. 
XXXX. Citibank has not provided any substantial proof that the wire transfer was fraudulent. 
XXXX. Citibank has seized nearly {$1.00} XXXX of my funds without any legal basis. 

I believe Citibank is acting in bad faith and potentially violating federal banking regulations by restricting access to my own funds without providing evidence or justification. 

Impact on My Business- As a small business owner, I rely on access to my funds to operate my business effectively. Citibanks actions have placed me in an impossible situation where I can not : - Pay my employees.

- Cover rent, utilities, and other essential business expenses.

- Conduct daily operations due to the sudden and unjustified account closure.

This has already caused significant damage to my business and could result in further financial losses if immediate action is not taken.

Request for Urgent Assistance- I kindly request that the CFPB urgently intervene in this matter and take the necessary steps to : 1. Ensure Citibank releases my funds immediately so I can meet my financial obligations.

2. Investigate Citibanks handling of this matter to determine if they are in violation of federal banking laws, particularly under the EFAA.

3. Hold Citibank accountable for any wrongful conduct that has caused undue financial harm to me and my business.

I appreciate your time and attention to this urgent matter. Please let me know if you require any additional information or documentation from my end. I look forward to your swift response and assistance in resolving this issue. 

Sincerely, 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