Consumer complaint received 2026-04-13 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CATHAY BANK
State: CA

Complaint narrative:
REQUEST TO REOPEN AND ESCALATE COMPLAINT # XXXX and XXXX This response does not resolve my complaint and raises additional serious concerns. Cathay Bank has confirmed that the {$250000.00} life insurance check was deposited, accepted, and negotiated. Despite this, the bank continues to withhold these funds while failing to provide a clear and workable path to resolution. 1. Check has already been negotiated reissuance is not possible I confirmed directly with the issuing life insurance company, on a recorded call with the banks representative present, that the check can not be reissued because it has already been cashed and endorsed by Cathay Bank. The banks instruction that I request a new check is therefore not a viable resolution. 2. I have attempted to comply with all requested actions, but the bank has blocked resolution I have made repeated efforts to comply with the banks verbal instructions, including : Offering to open a trust account to properly hold the funds Offering to reallocate the funds into the name of the XXXX XXXX XXXX However : The bank has not allowed me to open a trust account The bank has not provided a clear or consistent process to reallocate the funds The bank has continued to change its position without providing written guidance At this point, I am willing to comply with reasonable requirements, but the bank has not provided a workable path forward. 3. Improper withholding of funds without clear basis The bank accepted and processed the check, yet continues to withhold the funds without providing : A clear legal basis Any written policy supporting this action A defined timeline for resolution 4. Serious and unsubstantiated allegation of elder abuse Cathay Bank states that my actions raised elder abuse concerns, which is a serious allegation. However : No written report has been provided No factual basis has been disclosed No agency has contacted me The bank has not confirmed whether any report has been filed Additionally : My father is not a customer of Cathay Bank The bank does not maintain any account relationship with him The bank would not reasonably have independent knowledge of his personal circumstances Given these facts, it is unclear how Cathay Bank reached this conclusion. If this determination was based on internal analysis, I request the specific criteria used. If it was based on third-party information, I request clarification regarding the source and how that information was verified prior to being used to justify withholding funds. 5. Trust documentation does not justify continued retention of funds The trust has been reviewed by another financial institution without issue for purposes of opening an account. I am also actively working with a trust attorney to provide updated documentation. Even if additional documentation is required, this does not justify continued retention of funds already negotiated and in the banks possession. 6. Willingness of all parties to cooperate To ensure there is no ambiguity regarding authorization, I want to make clear that : My father is willing to appear in person at the branch to execute any required documentation My sister, who is a co-trustee, has also agreed to appear and provide written confirmation approving the handling of the funds to be released in a check made out to the XXXX XXXX XXXX XXXX parties are available to do so Monday or Tuesday of the coming week. Given this, there should be no remaining concern regarding authorization or consent. Despite this willingness to cooperate, the bank has not provided a clear or actionable path to resolve the matter and release the funds.

Company response to consumer: Closed with explanation