RBS Citizens Bank How I recovered over $800.00 in fees from the clowns at Citizens Bank! Boston Massachusetts

Preface: Citizens bank check posting procedures are outright deceptive. Below is the complaint I filed with the: MA Attorney General, MA Consumer Assistant Unit (Commissioner of Banks) and The Comptroller of the Currency. I filed this after 5 months of fighting with Citizens. I couldn't believe my eyes this morning when I checked my account and found all fees discussed in my complaint had been refunded to me. I hope that the details of my situation can help some of you resolve your disputes with them. My advice to you is to try to resolve it directly with your bank first; when this fails record the date, time and names of all your correspondence with them. The screen shots I had were also very helpful in proving that Citizens back dates checks to the prior business day-meaning that your "available balance" is not your available balance.



Re: Unresolved issues with Citizens Bank


Massachusetts Division of Banks
Consumer Assistance Unit,
One South Station,
Boston, MA, 02110

To whom it may concern,

I am writing to seek help in resolving a number of disputes that have arisen with Citizens bank. This first issue involves the manner in which Citizens charges $35.00 overdraft fees. I must admit some culpability in this first instance when it comes to miscalculating pending debits, and in such a case I have no issue with the agreed upon penalties that are imposed. My complaint arises from the manner in which Citizens manipulates transactions on a given day to ensure that they can impose the most possible OD charges.

1a- On March 20th 2007 I made a cash deposit of $120.00 giving me a balance of $1188.61. Fifteen minutes later I purchased a meal using my debit card for $7.64, then spent $4.36 at Starbucks and later that day spent $11.24 at a restaurant. I checked my balance via online banking that evening and had a balance of $1165.37 as I was expecting a bill payment to be processed for $1074.38. Unfortunately I recorded the amount incorrectly and $1374.38 was debited the following morning. This amount posted as having occurred prior to the above mentioned purchases along with service charges of $114.00 and $38.00, apparently the fees for the prior purchases. (see transactions starting 03/20/2007)

When I inquired with my local branch as to how this was possible I was told this would not have happened as I described and the larger debit must have come first. Seeing as the transactions I was referring to had indeed been rearranged to appear that way it was my assertion against theirs.

1b-On January the 10th of 2008 I noticed a series of unauthorized transactions and notified the branch at Stop and Shop on Mass Ave immediately. I filled out an affidavit and was told it generally takes no more than 24 hours for these transactions to be credited back to my account. As of January 15th this credit has not occurred. As a result my account balance dropped below zero. The manner in which Citizens processed transactions on January 14th and 15th is misleading and manipulative. Learning from my prior experience where backdating was outright denied as a practice I recorded screen shots to ensure a record. Screen 1 depicts the end of day balance for the date of Jan 14th, 2008 as well as all the transactions for that date. Screen 2 depicts the addition and rearranging of the prior days transactions in a manner that can only be advantageous to Citizens Bank. The change in transaction order and addition of the backdated check for $300.00 occurred between 5 and 5:30 AM on January 15th 2008.

1c- On July 9th 2007 an unfamiliar check for $213.98 posted to my account (see transactions 07/02/2007). This unauthorized debit resulted in service charges of $76.00, $38.00 and $35.00. After a little investigation I learned the check was presented electronically by a company I had never heard of. I disputed the transaction with Citizens. I was out of town for the next couple of months and upon returning realized that neither the item nor the associated fees were returned to my account. When I followed up with my home branch I learned that they had no record of the dispute, so I then challenged the transaction for the second time. After a couple of weeks I was told that too much time had passed and I am out of luck. So not only did I lose the $213.98 but the bank also refuses to credit back the fees totaling $149.00. I understand the use of such hefty fees being used as a deterrent; but in a case such as this where I had neither knowledge nor control over the unknown item it is egregiously unfair to also have to pay these fees.

I have asked three individuals on three separate occasions to shut off this undisclosed overdraft protection that has resulted in all these service charges. Carol Walsh, and Shamci have all told me that government regulation requires banks to provide $100 of OD protection in case of emergency. I have searched long and hard and can find no such regulation. If such regulation did exist then it seems this should be disclosed in the account holder agreement, which it is not. If this regulation does not exist then the systemic dishonesty of these branch employees is troublesome. Either way it seems to be an undisclosed common practice for Citizens to always allow the use of credit without calling it credit; collecting exorbitant fees for an involuntary service. There has never been an instance where Citizens has rejected a purchase where my account is negative-exactly how these are not considered involuntary loans is beyond me. To think that anyone would voluntarily pay a $35.00 fee so they can buy a $4.00 cup of coffee is absurd. The agreement states they may or may not allow an overdraft but if they do there is a charge of $35.00. Furthermore Citizens own disclosure regarding balance inquiries states This balance represents the dollar amount of money available in your account. Clearly this is either not the case at a given point in time, or it is the case or they are plainly manipulating transaction records.

2-My next issue involves Citizens obligation to its customers as governed by Regulation CC. On September the 4th I made a deposit to my account for $8958.00. The deposit was made at an ATM. When I tried to query my balance on September 5th and was unable. I called my branch manager Carol Walsh and was told that due to the amount of the deposit they had placed a hold on my funds, and that the hold would be a maximum of five days. When the funds were still not available I called Citizens customer service line on September 9th and was told the funds are being verified as we speak, they will be available tomorrow. This was not the case, and as a result a scheduled payment to Chase was returned, resulting in fees from chase of $117.00 (see Chase statement). I then went to speak in person with Ms. Walsh; I requested that Citizens provide a letter on my behalf indicating that I was misled as to the availability of my funds. This letter would have then been provided to Chases so the fees they applied could be reversed. I was told by Ms. Walsh that she would look into it and get back to me within 24 hours. After making five unreturned phone calls to her I have all but given up. My understanding is that in the case of non-local checks a bank must provide written notice as to the length of a hold. No such notice was ever provided. When I asked a supervisor at their call center about this I was told that regulation CC doesnt apply because it is the account that is on hold, and that once the funds were verified the hold would be lifted. This logic doesnt follow in my mind; I made a deposit, they place a hold on my account, the hold is contingent on the funds of the deposit being verified, but somehow this is not governed by regulation CC. If it is possible to negate regulation CC by holding an account as opposed to a given check then what is the purpose of Regulation CC? It is important to note that I was told on all occasions my account was placed on hold due to the size of the deposit.

Any assistance you may be able to provide recovering the total $535.00 in fees discussed herein (not including the $213.98) would be greatly appreciated.
Sincerely,






Cc: Board of Governors
Division of Consumer and Community Affairs,
20th and C Streets, N.W., Stop 801,
Washington, DC, 20551

Office of Attorney General
Commonwealth of Massachusetts,
One Ashburton Place,
Boston, MA, 02108

Office of the Comptroller of the Currency
Customer Assistance Group 1301 McKinney Street,
Suite 3450, Houston, TX 77010-9050

Njrosenthal
boston, Massachusetts
U.S.A.