ComplaintsforC&N

• Initial Complaint

  04/01/2024

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I have a business account with Citizens&Northern Bank, Hornell NY branch. An unauthorized transaction was put through my bank account by a tax accounting co. that I fired. On February 23, 2024, I terminated ***** * *********** *** **********. I told them they no longer were authorized to act on my behalf or my business. On Tuesday March 19, 2024 I checked the balance of my bank account online to make sure all my deposits were in there and funds were available to me for the work week. I went to the Hornell NY location on Saturday March 23, 2024 to deposit money into my account. The teller took my money and never said there was a problem with my account. I went home and got online to check my balance and it was negative $665.95. I emailed the bank immediately which is what the website says to do and on Monday as soon as the bank opened I went there and was told that on March 20, ***** * *********** submitted an EFT payment which caused my account to go negative. ***** * *********** were terminated 4 weeks prior. That is fraud. I explained all of this to the bank and they said I am responsible for all the overdraft fees from Wednesday-Saturday, my work week at $35.00 each. I did not overdraft my account. There was an unauthorized EFT. I was advised by the Hornell branch they cannot waive those fees even though it was fraud. I then contacted C&N corporate offices in PA who stated waiving of those fees are up to the direction of the bank manager. My account has always been in good standing and I am being penalized for a fraudulent charge that I did not authorize. I filed a police report regarding this matter and Citizens & Northern are not taking my claim of fraud into consideration. I was told by the bank fraud had to be reported immediately and they stated I did not because this incident happened March 20th. I was not aware of it until Saturday March 23rd. This has been a nightmare. It has had a severe financial impact on me and my business

  Customer response

  04/03/2024

  Yes the Hornell branch is my local branch. **** ** ** *** ******** ** *****

  Business response

  04/16/2024

  The customer opened his account on 6-3-2020, and was given full disclosures at that time. I've included copies of the following:  Signature card;  Fee schedule;  Terms and Conditions;  Electronic Funds Transfer disclosure; and  Truth in Savings disclosure.  The customer had apparently set up payments for NY State Sales tax with his accountant. These payments were made via ACH, with the bank playing no part other than honoring valid withdrawals and deposits. The customer's arrangements with his accountant are between himself and that company, and the bank has no responsibility for verifying whether their contract is in force or has been terminated. Per NACHA rules, ACH transactions can only be recalled within 24 hours. The customer did not notify the bank until March 25 that the withdrawal on March 20th was invalid, telling the branch manager then that he had fired the accountant in February, that the withdrawal should not have happened, and that he should have been notified by the bank.  Notices of fees that are assessed for overdrafts and non-sufficient funds are automatically generated and mailed to account holders. C&N offers free online banking, e-statements, telephone banking, and a Customer Care center so that folks can check their accounts whenever they like; the customer did have online banking with C&N, but was not aware of the transaction of March 20, 2024, until he received his mailed statement on March 25, 2024, having not opted for electronic statements. He did, however, have the ability to check his account status at any time, day or night. Unfortunately, we are not able to review every customer's account for problems and then notify the customer by phone immediately.   The branch manager did refund two of the fees even though there was no error or failure on the part of C&N, and advised the customer to contact the accountant concerning the transaction in question. He indicated reluctance to do so, instead blaming C&N for the problem. He did acknowledge that the payment was due for sales tax he owed, but was planning on using those funds to pay for a veterinarian bill for his pet.  Please advise if any additional information is needed. We regret these kinds of situations, but also believe that our customers are given ample tools to track their bank accounts' activity and respond quickly when needed. We gladly check customers' account status when asked to do so. 

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩