Consumer complaint received 2025-08-31 00:00:00
Product: Checking or savings account — Savings account
Issue: Closing an account — Funds not received from closed account
Company: CITIBANK, N.A.
State: NJ

Complaint narrative:
I am writing to formally dispute and file a complaint regarding the sudden closure of my Citibank account and the prolonged withholding of my funds without clear or consistent communication. I opened a Citibank checking account XX/XX/year>, to take advantage of a promotional offer. I transferred a significant amount ( over XXXX ) from an external joint account belonging to myself and my wife, without any issue on XX/XX/XXXX. I then received a promotional offer to open a savings account which I opened on XX/XX/year>. On XX/XX/year> I transferred a much larger amount from the same XXXX account to the savings account. The following morning I tried to log into my online account but I was locked out ( and NEVER received any notices about it ). When I called customer service, I was told that my account has been locked due to fraud and I have to reach out to the fraud dept. I spent hours on the phone with the fraud dept-there is no-one there that was helpful or speaks English properly. The only information I was given was that my account is locked because the funds came from my wife 's account and they are flagging it since Citibank only has my name on the account. I explained that BOTH our names are on the external account... finally after being transferred to the supervisors manager-I was told to have my other bank call to confirm my name is on the account. They tried to call twice but was told by Citibank that they cant take any info over the phone. I tried to have the funds transferred back to my external account, but a week later Citibank pulled the funds back. They told me to get my money I need to go into a branch together with my wife and IDs. The nearest branch is over an hour away from our home and my wife was XXXX  months pregnant at the time. But we wanted to resolve this issue so we drove over an hour and went into the nearest branch. They really tried helping but were told by whoever they spoke to that they can't release the funds. I called the Executive Response Unit and they reached out to the fraud department. After a week they contacted us and gave 2 options. We were assured that this would definitely work. One was to ask the bank from which I transferred the funds to issue a hold harmless. We contacted that bank and they told us they are unable to do so, because there is no fraud. The other option they told me is that my wife and I should go into a branch with our Identification and have them call the XXXX Department and they will release the funds. We spoke to 3 branches until we found one that was willing and able to try. We visited the branch on XX/XX/XXXX at EXTREME INCONVENIENCE to my wife WHO HAD JUST GIVEN BIRTH XXXX  DAYS PRIOR. We sat down with the manager who was very nice and experienced. He called the XXXX  exactly as we were told to do. They told him there is nothing they can do. There is a different department holding the funds and they are the only ones who can release it. A few days later I called the Executive Response team ( ERU ) again and they told me they will look into it and reach a resolution within 15 days. Finally after their deadline they apologized and said the bank called the wrong department as the XXXX  was not the correct department to call. I needed to go into a bank or issue a hold harmless or the funds would never be released. With no choice we got our other bank to send over the hold harmless. However the fax provided by Citibank was not working. Finally after a week we got the correct place to send it. It took another 3 days for Citibank to confirm they received it. However they told me it would take up to 90 days to review it. This is unacceptable. 
Throughout this prolonged process I have done everything they asked. I received incorrect information while constantly being delayed. Citibank has made numerous errors including but not limited to : flagging the account to begin with, not flagging the first transfer only the second one, not having the bank call the correct department, telling me the wrong department to have them call, and giving me the wrong fax number. They have taken their time, transferred my case from agent to agent as they went on vacation. It has been 74 days since they froze my account and now they say it can take another 90 days, 164 days total. 
This entire episode has caused me unnecessary stress, wasted time, and potential financial harm due to lost interest or investment opportunities on those funds. I have also not been able to use those funds to pay bills. It has also been extremely difficult for my wife who traveled to a bank over an hour away from our home during her ninth month and immediately after childbirth In addition, I was informed that this account closure may negatively affect my future relationship with Citibank, despite there being no wrongdoing on my part. I am also concerned that this incident could have a broader impact on my credit profile or interactions with other financial institutions. As a result, I request the following : 1. Immediately release my account balance without further delay. 2. Provide compensation or interest for the time my funds have been unjustly withheld. 3. Confirm in writing that this account closure will not affect my credit score or future dealings with Citibank or other financial institutions. 4. Provide significant compensation for our stress, time, inconvenience and frustration.

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