Consumer complaint received 2025-05-16 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: CITIBANK, N.A.
State: WA

Complaint narrative:
b'Subject: Formal Complaint Against Citibank Regarding Unresolved Fraudulent Charge Dispute (Case ID: XXXX) - Failure to Process Fraud Claim and Resulting Distress\nDate: XXXX XXXX XXXX\nTo: Consumer Financial Protection Bureau\nFrom: XXXX XXXX XXXX XXXX XXXX XXXX WA XXXX XXXX XXXX XXXXCiti Account Ending in XXXX\nCase ID: XXXX\nDear Consumer Financial Protection Bureau,\nI am writing to file a formal complaint against Citibank for their unfair handling and subsequent rejection of a dispute concerning a fraudulent charge that appeared on my account. This situation has been compounded by Citibank\'s misleading dispute reporting system by phone and online options, and the bureaucracy of their system to the detriment of consumers, which hindered the proper classification of the issue from the outset and has caused me considerable financial and mental distress.\nThe disputed charge is for XXXX from a merchant listed as XXXX XXXX XXXX XXXX. This charge was posted to my card ending in XXXX  on or about XXXX XXXX XXXX.\nThe circumstances of this charge are as follows: On XXXX XXXX XXXX, my spouse and I were targeted by scammers who impersonated representatives of XXXX  and XXXX XXXX entities with whom we had valid, pre-paid travel arrangements as shown on their email heading. The scammers possessed specific, accurate details about our existing bookings, which lent false credibility to their claim that an additional XXXX  payment was necessary to confirm our reservation. They made us believe that if we didnt pay the amount they requested, all of our bookings would be canceled. Under this fraudulent inducement, believing we were finalizing our legitimate travel, we authorized the XXXX charge on XXXX XXXX XXXX.\n\nImmediately following this transaction on XXXX XXXX XXXX, we received a fraud alert from Citi card. While our initial, immediate response to the automated alert was influenced by the scammers\' tactics, upon quickly realizing the deception, by contacting XXXX  and XXXX the next day,  we took prompt action. On the very next dayXXXX XXXX XXXX XXXX, we contacted Citibank by phone to dispute this charge and, critically, to report it as a **fraudulent transaction**. During this phone call, we explicitly communicated that we had been scammed, disputed the XXXX  charge, and requested a replacement card, which was subsequently issued. We understand that Citibank records all phone conversations, and the recording of this call from XXXX XXXX XXXX, serves as undeniable evidence of our immediate reporting of this as fraud. It is essential to highlight that when attempting to address this charge online immediately after the scam occurred, there was a significant lack of a clear and appropriate online option to report the transaction as outright *fraud*, which, according to the Citi Card claim, complicated the initial reporting process.\n\nFollowing our phone report and dispute on XXXX XXXX XXXX  (Case ID: XXXX was assigned), a conditional credit of XXXX  was applied to our account.\n\nOn XXXX XXXX XXXX we received a letter from Citibank requesting more information. This letter incorrectly framed the dispute as concerning "merchandise or service that was cancelled," demonstrating that Citibank\'s system did not accurately capture or process the nature of our complaint as fraud from our initial report. It was Citibank\'s fault for ignoring our clear reporting of a fraudulent charge at the onset.\n\nIn response to this request for information, on XXXX XXXX XXXX, we sent a detailed written explanation to Citi (referencing the contents of "Explanation of the Disputed XXXX"). This explanation clearly described the fraudulent nature of the transaction, emphasizing that XXXX XXXX" is a scam operation entirely unrelated to our legitimate travel agencies (XXXX XXXX XXXX XXXX). We also included supporting documentation, such as the scam email (referencing "Scam Email For XXXX), as evidence of the deceptive and predatory practices used.\n\nDespite providing this detailed information and clear evidence of fraud, and after further communication where we explicitly clarified that the dispute was based on a fraudulent transaction after speaking with a Citi manager (referencing the contents of "Second Letter to CITI to Dispute a Fraudulent XXXX" and "Second Letter to CITI to Dispute a Fraudulent Charge.XXXX sent on XXXX XXXX XXXX), Citibank rejected our dispute. We received notices on XXXX XXXX XXXX (referencing "First Notice from XXXX) and XXXX XXXX XXXX  (referencing "Citi Card Rejected the XXXX and "Citi Card Rejected the Dispute after Second ExplanationXXXX) stating that the investigation was complete and the dispute was not resolved in our favor. Consequently, the conditional credit was reversed.\n\nCitibank\'s failure to recognize and appropriately process this dispute as a case of fraud, despite our immediate reporting on XXXX XXXX XXXX (verifiable by phone recordings), the evidence provided, and our subsequent clarification, has been incredibly frustrating and has caused significant financial and mental distress. The initial lack of a clear online channel for reporting fraudulent charges and the subsequent handling of the dispute as a potential service cancellation rather than outright fraud allowed the charge to remain and be reinstated, subjecting us to unnecessary hardship and worry. We believe that Citi\'s internal dispute categorization and processing procedures are flawed, leading to legitimate fraud claims being improperly dismissed.\n\nWe urge the Consumer Financial Protection Bureau to investigate Citibank\'s handling of this specific fraudulent charge dispute (Case ID: XXXX). We request that you review all evidence, particularly the recorded phone conversation from XXXX XXXX XXXX which confirms our immediate fraud report. It is clear that Citibank had the necessary information to process this as fraud from the beginning.\n\nWe seek the immediate and permanent removal of the XXXX  fraudulent charge from our account, the reinstatement of the conditional credit, and the reversal of any associated fees or interest charges that were applied due to this unresolved dispute.\n\nThank you for your attention to this urgent matter and for your efforts in protecting consumers from unfair practices by financial institutions.\n\nSincerely,\n\nXXXX 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 monetary relief