Consumer complaint received 2026-07-14 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CITIBANK, N.A.
State: CA

Complaint narrative:
I am submitting this complaint regarding Citibanks contradictory investigation, repeated restriction and closure of my accounts, and its continued refusal to provide access to approximately {$34000.00} that Citi is holding in my personal deposit and brokerage accounts. 

This matter arose from a check issued to me from a home-equity line of credit serviced by XXXX XXXX  XXXX XXXX I am a borrower and obligor on that HELOC. The check was issued directly to me and made payable in my name. 

The check was deposited into my XXXX account. XXXX later restricted and closed my accounts after allegations were apparently made by the other borrower on the HELOC. Although I provided XXXX with loan documents and evidence showing that I was a borrower and that the check had been issued to me, XXXX continued restricting my accounts and ultimately terminated its relationship with me. 

On or around XXXX XXXX XXXX XXXX transferred approximately {$25000.00} of my funds into my personal Citibank account. Those funds remain in my Citi personal account. I also have approximately {$9000.00} in a Citi brokerage account. 

Therefore, Citi is currently holding approximately {$34000.00} belonging to me. 

Before XXXX transferred the {$25000.00}, checks that I had written from my Citi business account were returned on or around XXXX XXXX XXXX. Citi began restricting and closing my accounts because the HELOC check had been returned unpaid. 

However, the check was not counterfeit, forged, stolen, or issued without authorization. 

I participated in an approximately three-hour telephone call with a Citi fraud department supervisor . During that call, Citi conducted a three-way conversation with XXXXXXXX XXXX XXXX. 

XXXX directly confirmed to Citi that : * The HELOC check was legitimate; * The check had been authorized and issued to me; * I was a borrower or obligor associated with the HELOC; * The check was not fraudulent or counterfeit ; and * The check was returned only because the other borrower called and froze the credit line during the time the check was being presented for payment. 

After receiving this confirmation from XXXX, the Citi fraud supervisor told me that he would send my accounts back for further review and reconsideration. 

Several weeks later, I received written correspondence from Citi indicating that my accounts were being reopened. 

However, when I attempted to create a username and regain access to Citis online banking system, I discovered that the accounts had been blocked again. 

When I contacted Citi, I was told that I would not receive online access or access to my funds until I brought my business account current. 

I repeatedly explained that Citi was already holding approximately {$25000.00} in my personal account and approximately {$9000.00} in my brokerage account. I requested that Citi permit me to transfer enough of those funds into my business account to satisfy or substantially reduce the negative balance. 

Citi refused. 

Citi has therefore created an impossible and coercive situation. It is holding approximately {$34000.00} of my money, preventing me from accessing or transferring that money, and simultaneously demanding that I obtain additional outside funds before it will restore access to the funds it already holds. 

The {$25000.00} transferred by XXXX is not being disputed as belonging to Citi. It was transferred from my XXXX account into my Citi personal account. It remains in my name and under Citis control. Nevertheless, Citi will not allow me to transfer those funds from my personal account into my business account to address the negative balance. 

Citi has also refused my requests to internally apply or transfer the funds itself. 

As a result, Citi has prevented me from using my own money to resolve the very account deficiency that Citi says is preventing access. 

In an effort to comply with Citis demands, I sold or pawned substantially all of my valuable personal property. I also took out an emergency loan carrying approximately XXXX percent interest compounded daily. 

Through these extraordinary measures, I obtained approximately {$19000.00} to provide to Citi in an attempt to bring the business account current and regain access to my accounts. 

Even after I obtained those funds, Citi continued refusing to allow the remaining balance to be addressed through a transfer from the approximately {$34000.00} Citi already held. 

I have now exhausted my available resources. I have no additional funds to provide Citi. Meanwhile, Citi continues to retain my personal and brokerage funds and refuses to permit a reasonable internal transfer. 

This situation has continued for nearly a month and a half. 

Citis actions are especially concerning because : 1. Citi directly verified with XXXX that the HELOC check was legitimate and authorized. 

2. Citi was informed that the check was returned only because the other borrower froze the credit line after the check had been issued.

3. A Citi fraud supervisor advised me that the matter would be reconsidered.

4. Citi subsequently sent written correspondence stating that my accounts were being reopened.

5. Citi then blocked the accounts again without giving me a clear explanation.

6. Citi is holding approximately {$34000.00} in my personal and brokerage accounts.

7. Citi refuses to allow me to transfer those funds to my business account.

8. Citi refuses to perform the transfer itself.

9. Citi nevertheless demands additional outside funds as a condition of restoring access.

10. Citis refusal has forced me to sell valuables and incur an extraordinarily expensive emergency loan.

Citi has not provided a meaningful written explanation identifying : * Why it reversed its written decision to reopen the accounts; * What new information caused the accounts to be blocked again ; * Whether Citi still claims the HELOC check was fraudulent; * Why Shellpoints direct confirmation was insufficient; * The exact amount required to bring the business account current ; * Why funds in my Citi personal and brokerage accounts can not be transferred or applied; * What legal or contractual restriction prevents an internal transfer; * What steps I must complete to obtain access to the remaining funds ; or * When Citi intends to release my undisputed money. 

I recognize that a bank may investigate returned checks and may decide whether to continue a customer relationship. However, Citi should not be permitted to retain approximately {$34000.00} belonging to a customer, block the customer from using those funds, refuse to internally apply the funds toward a claimed negative balance, and then demand outside money as the sole condition for access. 

Citis conduct appears unfair, contradictory, and abusive. Citi has placed me in a financial trap in which the bank controls more than enough money to substantially resolve the issue but refuses to either release or apply it. 

The continued restriction has caused severe financial harm, including : * The sale and pawning of valuable personal property; * An emergency loan carrying approximately 10 percent interest compounded daily ; * Additional debt and financing costs ; * Loss of access to approximately {$34000.00} ; * Inability to conduct ordinary personal and business transactions; * Disruption of my business operations; * Difficulty paying rent and basic living expenses; * Loss of access to my Citi brokerage funds; * Damage to my ability to maintain or establish banking relationships ; and * Severe financial and emotional distress. 

I respectfully request that the CFPB require Citi to take the following actions : 1. Immediately provide access to all undisputed funds in my personal deposit and brokerage accounts.

2. Permit me to transfer sufficient funds from my personal or brokerage accounts into my business account to address any legitimate negative balance.

3. Alternatively, internally apply the necessary amount toward the negative balance and release all remaining funds to me.

4. Provide a complete accounting of every Citi account associated with me, including all deposits, returned checks, debits, holds, offsets, restrictions, transfers, and balances. 

5. Identify the exact amount Citi claims is necessary to bring the business account current.

6. Explain why Citi will not allow the negative balance to be resolved using funds already held in my Citi accounts.

7. Identify any legal, regulatory, or contractual prohibition that Citi believes prevents such an internal transfer.

8. Explain why Citi issued written correspondence indicating that the accounts would reopen and then blocked the accounts again.

9. Identify any new evidence Citi received after issuing the reopening correspondence.

10. Confirm the substance of the three-way call in which XXXX verified that the HELOC check was legitimate and authorized. 

11. Provide the notes and records associated with the approximately three-hour call involving Citi, XXXX, and me. 

12. Explain whether Citi continues to classify the transaction as fraud despite XXXX confirmation. 

13. Reimburse the interest, fees, and borrowing costs arising from the emergency loan I was forced to obtain.

14. Reimburse documented losses caused by the forced sale or pawning of my property.

15. Correct or remove any inaccurate information Citi reported to XXXX XXXXXXXX XXXX XXXX, credit-reporting agencies, fraud databases, or other financial institutions. 

16. Confirm whether Citi communicated with XXXX, XXXX, the other HELOC borrower, or any other institution concerning my accounts. 

17. Provide copies of all closure notices, reopening notices, investigation findings, account notes, fraud referrals, and nonprivileged records relied upon in restricting my accounts.

18. Immediately release any funds exceeding the legitimate amount necessary to resolve the business account balance. 

I have made repeated good-faith attempts to resolve this matter. I participated in an extensive fraud investigation, arranged direct verification from XXXX, provided substantial outside funds, and repeatedly proposed a reasonable internal transfer. 

Citi has rejected every reasonable solution while continuing to retain approximately {$34000.00} of my money. 

I am requesting immediate CFPB intervention because I have exhausted my personal resources and can not continue borrowing or selling property merely to satisfy Citis demand for outside funds while Citi refuses to make available the funds it already holds.

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 non-monetary relief