Letter to Senator and Congressman
Massive Missing Funds from FDIC-Insured Bank Affecting Many End Users
Dear Congressman Larry Bucshon, M.D.,
On November 5, 2024, amidst the chaos of the presidential election, Evolve Bank & Trust announced that it would not be returning over $50 million in frozen savings and checking account balances. It is crucial for you to understand how this situation has affected your constituents, including myself.
Since May 11, 2024, hundreds of thousands of individuals have been denied access to their savings due to the freezing of accounts at Evolve following the bankruptcy of the bank’s partner, Synapse, which provided fintech services. For months, families have struggled without essential savings, with many driven to hopelessness by the prolonged inaccessibility of their funds. The Chapter 11 bankruptcy trustee, former FDIC chair McWilliams, expressed dismay that no regulator has stepped up to assist end users in the Synapse bankruptcy.
Evolve froze all funds in May to evaluate the “true balances” of each account. After several months, Evolve concluded its reconciliation of accounts, resulting in the largest attempted forfeiture of funds by a private bank serving individual citizens. This reconciliation process lacked transparency regarding how Evolve determined its financial liability to depositors. Consequently, many depositors have been informed that they will receive none of their deposits back, while others have been told they can expect only a fraction of a percent of their original savings. This opaque process has further eroded trust and highlighted significant issues within the regulatory oversight of fintech and banking partnerships.
I opened my account with Evolve Bank, which is FDIC-insured, through Juno Finance, using a debit card issued by the bank. My employer directly deposits my salary into Evolve's routing and account numbers. I have statements and pay stubs proving my balance, yet Evolve shows that they hold $0 of my $xxx,000. I have filed complaints with the CFPB, which referred me to the Federal Reserve, and I have also filed complaints directly with Federal Reserve Consumer Help. However, there have been no actions from them in the past six months. This situation is not the result of an investment or gambling; it is simply a matter of placing my hard-earned money into a checking account. As your constituent, I urgently request your support in the following ways:
- Pressure the Federal Reserve to intervene and release depositor funds to provide immediate relief while an investigation into regulatory failures and mismanagement is conducted.
- Advocate for robust consumer protection laws that specifically address depositor rights in cases of fintech-bank partnership failures, ensuring that depositors do not suffer financial losses in similar situations.
- Demand an investigation into Evolve’s actions, including its reconciliation process and transparency practices, to ensure that depositor rights and protections are upheld.
Depositors are not just numbers in an institution—they are individuals and families who have entrusted their savings to a regulated, FDIC-insured bank. We ask for your leadership in advocating for urgent intervention to restore depositor funds and protect future consumers from similar crises. Your support could bring essential relief and help restore confidence in our financial system.
What has taken place here is unacceptable and should not stand in the United States of America. Thank you for your commitment to the financial security of your constituents.
Sincerely,
Name