Consumer complaint received 2025-04-16 00:00:00
Product: Checking or savings account — Checking account
Issue: Opening an account — Unable to open an account
Company: CITIZENS FINANCIAL GROUP, INC.
State: MD

Complaint narrative:
Dear CFPB Team, I am writing to formally request your assistance in resolving an issue regarding the closure of my Citizens Bank account, which I believe was handled unfairly. 

I have always enjoyed banking with Citizens Bank, especially because the branch is located in the same building as my office, making it incredibly convenient. This proximity, along with my positive experience over time, is why I am reaching out to seek your support in getting my account reinstated. 

In XX/XX/year>, my wife used my Citizens Bank account to receive an ACH payment from XXXX. The funds were intended for her, but due to her own account being in overdraft at the time, she used mine. Shortly after, the bank froze my account, citing that the payment was not in my name. 

In response, I visited the XXXX XXXX, MD branch with my wife to explain the situation. The branch staff accepted our explanation and assured us that they would contact the security department to lift the freeze. However, the security department remained firm in their stance, stating that Citizens Bank does not allow customers to receive direct deposits on behalf of otherseven family members. As a result, my account was placed under review for over XXXX weeks. 

During this period, I received a call from the bank informing me that they intended to return the funds to the source. I agreed to this, authorizing the return of the funds to my wifes XXXX account, from where she could transfer it to her own bank account. I was assured at that time that my account would not be closed once the funds were returned. 

However, when I followed up a few days later to confirm the status of the refund, I was informed that the return had been processed, but the bank had changed its decision. I was told that despite the previous assurance, the account would be closed. The reason provided was that if they allowed me to receive an ACH deposit intended for a family member, it could set a precedent for accepting payments for unrelated third parties in the future. 

They stated that it was best to terminate the banking relationship at this early stage, even though I had cooperated fully and followed all instructions, including returning the funds. 

To make matters worse, Citizens Bank has since refused to allow me to open a new account, further compounding the inconvenience and disruption to my personal and professional life. 

I believe this action was disproportionate and inconsistent with the understanding reached with the bank staff. I respectfully request the CFPBs intervention and support in reviewing this matter and advocating for the reinstatement of my account or the opportunity to open a new one. 

Reasons why I'm bringing about this case : I was told my account wouldnt be closed after returning the funds then they went back on that. 
I cooperated fully and even took steps to correct the situation by bringing my wife to the branch. 
The refusal to let me open a new account is excessive, since there is no formal case of fraud involved. 

While I understand that bank generally has the right to close customer accounts : This closure was based on unclear, inconsistent, or unfair policies. 
I was misled and given conflicting information. 
The process lacked transparency and proper communication. 


Thank you for your time and consideration.

Company response to consumer: Closed with explanation