Account opening, closing, or management

Posted on Posted in Bank

review

On or about XXXX XXXX, 2016, I logged into my Flagstar Bank checking account online. I searched for a way to transfer funds from my Flagstar line of credit to my Flagstar checking account. ( This would have been a draw on my credit line. ) I was unable to find any way to do this online, so I contacted the bank by phone to request a transfer. I was told that I could only draw on my line by writing checks. When I asked why I could not transfer funds into my checking account, I was told that my checking account had been closed and that I would have to open a new checking account in order to access my line of credit. To open the new checking account, I was required to make a {$50.00} deposit from funds outside of Flagstar Bank. On or about XXXX XXXX, 2016, I learned of a third Flagstar Bank checking account in my name, predating the newly established checking account. I contacted Flagstar about this account and spoke with a different representative of the bank. I was told that the third account had been specially established at the same time as the credit line for the express purpose of drawing on the line. This bank representative had no explanation when questioned as to the earlier requirement that I open a whole new checking account. This made me think of the way that XXXX XXXX employees would trick customers into opening unnecessary new accounts. I recently received my first statement for the new checking account, for the period ended XXXX XXXX, 2016. The statement included a {$2.00} ” paper statement ” fee. In opening the account, I was never informed of this fee. I believe this to be a deceptive practice, therefore I have contacted the CFPB.

Leave a Reply