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Cit Bank Sending False Info

GH1
  |     |   1,055 posts since 2017

Received a letter today saying my account is dormant and because of state laws the are turning my account to the state as 2 years dormant. Now in my state the law is 5 years and not 2. If they are going to send these letters to get more deposits just tell me the truth. I had to write to them and explain they do not understand my state laws and in no way are they authorized to release my accounts to the state

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Ally6770
  |     |   4,294 posts since 2010
I assume it was spam. Did you click on a link? Did you call Citi and the staff have been very informed when I have called them. I have gotten spam letters confirming that I have ordered things from Apple and it was credited to my credit card. It is spam. The credit card that I have with Apple has been closed for years and have not bought anything from them since I changed credit cards. Usually each bank has an email that you can send the email to them and they can trace it. If you put your pointer on the senders email you can verify who it came from. I would change your login in immediately and then call Citi. They can put an alert on your account or change the account number.
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Ally6770
  |     |   4,294 posts since 2010
Should have added if it was not spam most places can reactivate your account over the phone. I do that with even my stock account that I do not use. When they say you have to write a letter etc. Tell them you verify me over the phone when I ask questions about my account I am sure there is a way you can do this over the phone and they always have found a way to do it.
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me1004
  |     |   1,379 posts since 2010
garyh1961, first, did they say they are escheating it, or that they will if you don’t do something before a certain date? In other words, have they already escheated it? If they have, I don’t think they can reverse that, it is already in the hands of the state, you would have to deal with the state.

Second, I am doubting it is your state that will control the rules, I expect your disclosures tell which state will control them. And that would be the state to which it was escheated.

But regardless of that, if they still hold the account, the entire matter is due to lack of activity on your account. All you have to do is deposit $1. You can then even withdraw the $1. And all is back to active.

Did they actually say “dormant” and “escheat” and that they would turn it over to the state? Or, are those your words? People can often confuse inactivity penalties and dormancy for escheatment.

Also, if it has gone to escheatment, it is likely you have already been getting hit with an inactivity fee. Have you even checked your account?

You gave no indication that you have simply called into CIT and asked about it, only that you wrote in. Give them a call.

BTW, to the other posters, he is saying he got a letter, not an e-mail. You don’t hit Reply buttons for a letter.
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alan1
  |     |   877 posts since 2015
It's not clear to me what the letter stated (whether or not it was actually from Citi Bank). If it described your account as being "two years dormant" that could mean there has been no activity for two years. Or it could mean that there was no activity for a longer period; that the account became dormant two years ago; and that they are preparing to send the funds to the state.

In any case, I hope that you wrote to an address that you know belongs to Citi Bank, rather than simply an address listed in the letter (just in case it's a scam). A possible indication of a scam is that the letter did not list an account number and scammers are trying to obtain that information.
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Ally6770
  |     |   4,294 posts since 2010
I do not know of any kind of statement or letter that will have your SS number or account number on it. When I call about an account, I have to go to the file to get my number from my copy of the approved signed opening signature card.
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alan1
  |     |   877 posts since 2015
Ally6670 -- my experience is different. I received letters from Capital One in 2014, listing the last four digits of numbers of two accounts that it claimed were about to be declared abandoned, and enclosed a form for me to return. I phoned Capital One -- I was told that they had sent the letter. The letters read, in part:

We need to hear from you to keep your account active.
Dear xxxxxxxxx:
We noticed you haven't used your account ending in XXXX in over three years now. If we don't hear from you soon, your account will be considered "abandoned" and state law says we have to turn over abandoned accounts to their unclaimed property department.
[snip]
Thanks,

Abandoned Property Department
Capital One Bank

Capital One was wrong about the lack of activity, but I did return the form.
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Ally6770
  |     |   4,294 posts since 2010
Alan 1 When you posted
that the letter did not list an account number and scammers are trying to obtain that information.
I did not realize you meant the last 4 numbers. I thought you meant the whole number. Everyone does the last 4 numbers. I misunderstood.
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alan1
  |     |   877 posts since 2015
Apologies for my having caused confusion.
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GH1
  |     |   1,055 posts since 2017
CIT bank not Citi, i guess i was just shocked by the letter. Main concern is they do not know the laws in my state which they say will be defaulted to.
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paoli2
  |     |   2,641 posts since 2011
I don't understand how anyone can have an account with any bank that does dormant. As long as you are getting interest sent to you or another account you give them, the account can't be dormant. If we have a CD which matures and we don't renew it of course it would end up dormant. But who just lets a matured CD sit with a bank or institution without telling them what you want to do at maturity? I was told I don't even have to make calls to them during the life of the CD as long as there is some activity on it and mailing us out interest checks certainly shows it is an active account. if you choose to let the interest compound then I guess at maturity you need to tell them what you intend on doing.
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GH1
  |     |   1,055 posts since 2017
Your right that makes not sense. But i did get it fixed. I originally set up things with CIT all went well but was slow on depositing the ACH. I believe i will move this out to somewhere with no CS issues. Even though no one paying decent anymore
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me1004
  |     |   1,379 posts since 2010
paole2, under your scenario, yes, there is activity on the account. But they require that YOU initiate the activity at any particular time, the requirement is for you to interact with the institution by intiating activity on the accont, not some automated activity within the bank. I do often see a rule accounting for CDs, if you have one, you do not need any acitivty during the term of the CD. But without a CD, the activity and dormancy rules apply.

garyh1961, I think you are mistaken about your state laws prevailing. You are doing business in the state where the bank is, and that state's laws are the ones that will count. The business is being done in that state, not in your state. The disclosures are expected to even specify which state's laws are controlling.
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Choice
  |     |   937 posts since 2020
Gary quote, “Main concern is they do not know the laws in my state which they say will be defaulted to.”   Seems clear to me which state law applies according to what Gary provides.
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paoli2
  |     |   2,641 posts since 2011
me1004: I took it for granted that you understood this is all taken care of when we first open the CD. We tell them what we want to do with the interest. Mailed to us?, Left in CD to compount? or deposited to another bank or financial account we have? The "activity" is then put in place by the CD institution and we have an active account until the day it matures and we decide whether to leave it with the same institution or take it someplace else. No dormancy should be involved with this process.
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Ally6770
  |     |   4,294 posts since 2010
This for the first time in over 50 years having CD compounded, that this happened. I balanced one of my checking accounts and noticed an additional deposit made. It was done with interest from a 10 year CD I have. I called and they said they did not under stand how that could have happened. It will mature in August. The technical staff was not in and they would get back with me. They finally discovered that they had an update to the computers and this happened to every 10 CD and could not be reversed but it would not happen again. I just said I will give you 2 weeks to find a way to reverse it, back date it and notify me that it has been done or I will contact FDIC and I am sure their experts will let you know it can be done, instruct you how it is done and that you will reverse it and backdate the deposit date. I told them I worked in a bank for 30 years and it can and will be done one way or an other. It was done in a few days with an apology. They did tell me that I was the only one who had noticed it. But then I was the only person in a bank with nearly 40,000 employees noticed that amount taken out for federal taxes was the right amount on the stub but had been doubled when added to the yearly amount withheld. And the only who noticed on a retirement check of my husbands that the last check of the year and the first check of the new year had been added to the 1099 R when we received it. The pension department had changed banks. They said I was wrong or that the other bank may have had the wrong amounts. But I had kept every stub since his retirement started and proved it. The new bank was wrong. That was more complicated because they had changed banks. There were several hundred retirees whose pensions had been combined by local unions who had combined. But that extra check had put us in a higher tax bracket. I just said I wanted a new 1099R with the correct amount and how you fix it is your problem. So no matter how you sign up for things, life happens but it will go on. Just double check and never take things for granted.
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Choice
  |     |   937 posts since 2020
Their compliance office should be made aware of this as well as auditors..may want to ask them when they self-reported it to those offices...getting close to year end when auditors ask to be informed of claims including contingent claims.  Anything can be reversed
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