Prepaid card -- Problem with a purchase or transfer -- Complaint #12303738
Complaint Overview
Complaint ID: 12303738
Company: Citibank, N.A.
Product: Prepaid card
Sub-Product: General-purpose prepaid card
Issue: Problem with a purchase or transfer
Sub-Issue: Card company isn't resolving a dispute about a purchase or transfer
State: New York
ZIP Code: 11418
Date Received: 2025-03-03T12:00:00-05:00
Date Sent to Company: 2025-03-03T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Tags: Servicemember
Consumer Narrative
Subject : Formal Complaint Against Citi Bank Regarding Fraudulent Dispute Handling Dear Consumer Financial Protection Bureau, I am writing to formally lodge a complaint against Citi Bank regarding their mishandling of a fraudulent dispute filed by one of their customers, XXXX XXXX ( Account Number : XXXX ), dated XX/XX/XXXX. The customer falsely claimed that they did not receive their wedding invitations ; however, the product ordered was a digital wedding invitation, which was delivered in full as per the agreement. Supporting evidence, including proof of delivery, is attached. Following the initiation of this dispute, Citi Bank was contacted via the XXXX XXXX XXXX XXXX XXXX XXXX Online Complaint Management System on XX/XX/XXXX under complaint number # XXXX ( XXXX response code : XXXX ). Citi Bank requested supporting documentation, which we duly submitted, including proof of delivery and verification of the digital transaction. The submission was made via email, and all relevant evidence is attached ( Exhibit B ). Despite providing Citi Bank with clear and irrefutable proof that the customer 's dispute was fraudulent, Citi Bank has failed to act responsibly and has wrongfully favored the fraudulent claim. This conduct not only constitutes negligence but also violates federal financial and consumer protection laws, including but not limited to : The Electronic Fund Transfer Act ( EFTA ) - 15 U.S.C. 1693 et seq. Citi Bank is obligated to investigate disputed transactions fairly and in good faith before reversing funds. Their failure to properly evaluate the evidence constitutes a breach of these obligations. Regulation E ( 12 CFR 1005.11 ) Under this regulation, financial institutions must conduct a reasonable investigation before determining the outcome of a dispute. The failure to consider submitted evidence in a digital transaction undermines the integrity of the dispute resolution process. The Fair Credit Billing Act ( FCBA ) - 15 U.S.C. 1666 et seq. The law requires creditors to resolve billing disputes fairly and promptly. Citi Bank 's disregard for the documented proof of delivery violates their duty under FCBA, thereby enabling fraudulent chargebacks. Consumer Financial Protection Act ( CFPA ) - 12 U.S.C. 5531 Citi Banks failure to properly investigate and their unjustified support of fraudulent claims constitute an unfair, deceptive, or abusive act or practice ( UDAAP ) under CFPA. Citi Banks actions not only result in financial harm to merchants but also set a dangerous precedent for fraudulent disputes. Therefore, we urge the Consumer Financial Protection Bureau ( CFPB ) to take immediate legal action against Citi Bank for failing to comply with federal laws and for aiding in fraudulent chargeback activity. We request the CFPB to : Conduct an investigation into Citi Bank 's dispute-handling practices. Impose necessary sanctions or penalties for their failure to follow regulatory obligations. Mandate Citi Bank to reverse the wrongful chargeback and reinstate the transaction. Thank you for your prompt attention to this matter. Please confirm receipt of this complaint and provide information on the next steps in the investigation process. Sincerely, XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX
Frequently Asked Questions
What is Complaint #12303738 about?
Complaint #12303738 was filed against Citibank, N.A. regarding Prepaid card specifically about Problem with a purchase or transfer. It was received by the CFPB on 2025-03-03T12:00:00-05:00.
How did Citibank, N.A. respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Prepaid card) and describe your issue in detail.
Can I see other complaints against Citibank, N.A.?
Yes, visit the Citibank, N.A. company profile at readthecomplaint.com/company/citibank-n-a to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.