Consumer complaint received 2021-03-11
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: MA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/XXXX I wrote a paper check for {$10000.00} on my home equity credit line account with XXXX XXXX XXXX XXXX Bank, and deposited it into my Bank of America checking account at a local BofA ATM. I was informed at the time of deposit that an automatic hold would be placed on my check for 7 business days, but that I could cancel the deposit transaction. Having no other way to get those funds from my credit line with XXXX XXXX into my checking account at BofA, I completed the deposit, thinking that what they meant was that the hold would be for " up to '' 7 business days. I confirmed with XXXX XXXX today ( XX/XX/XXXX ) that it received and cleared the check on XX/XX/XXXX, yet BofA still has the deposit on hold and says it won't release it for another 6 days!!! I spoke twice with BofA customer service reps -- on XX/XX/XXXX, after making the deposit, and again today, after learning that the payor bank had transferred the funds to BofA two days ago. Each rep told me the same thing, obviously reading from a script, that the check was in the process of being " verified. '' But obviously it was already " verified '' two days ago when my payor bank cleared the check and debited my account there for the {$10000.00}. 

I am a long-time BofA account holder, and in fact I wrote a check in this same amount on the same XXXX XXXX credit line almost one year ago, and that deposit was not placed on a 10-day hold ( I understand that it is normal for the funds to require 1 or 2 business days before becoming available ). Nor have other checks in the same or larger amounts from other of my accounts at other institutions been subject to an automatic 10-day hold by BofA. The first BofA customer rep I spoke with ( on XX/XX/XXXX ) told me this is a new BofA policy as of XX/XX/XXXX ( which makes sense because a much larger check deposit I made there on XX/XX/XXXX went through without such an extended automatic hold. Yet the paper receipt from the BofA ATM that I received states that the " reason '' for the hold is that " check specific information indicates item may be returned. '' Yet so far from being returned, the check was honored by XXXX XXXX on the very next business day!!!!!! Yet still BofA won't release the funds to my account. 

I can only think that BofA is implementing this new policy in order to discourage its customers from using paper checks, probably because there is some overhead expense associated with processing paper checks and BofA is trying to cuts its costs. Regardless of whether I'm right or not, this automatic 10-day paper check hold policy, especially for a long-time account holder with a history of making good paper check deposits in large amounts, including from the same financial institution the present check is drawn on, is clearly and unequivocally an unfair and deceptive practice on Bof A 's part, and the CFPB should order it to cease and desist immediately from such behavior.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation