Consumer complaint received 2019-12-11
Company: BBVA FINANCIAL CORPORATION
State: CA
Product: Checking or savings account
Sub-product: CD (Certificate of Deposit)
Issue: Opening an account
Sub-issue: Confusing or missing disclosures

Complaint:
On Monday XX/XX/2019, while re-investing money in a CD, I received totally incorrect information regarding how much money can be covered by the FDIC in an individual Payable on Death Account. If I had followed the advice given by the new Account Representative, there would have been money in the account that would have been over the FDIC limit. 

I am concerned that other depositors are being misled into placing their funds into accounts which are not protected by the FDIC. This is the third time in the last few years I have received blatantly incorrect FDIC information, and this is the only time I am officially filing a complaint. 

During this most recent occurrence, while renegotiating the terms for a CD that had matured, I mentioned that since the balance was more than {$250000.00} it would be necessary to reduced the balance in order to keep all the money withing the FDIC guidelines. [ The vesting on this account is as follows : Mom, POD Son. Mom is the sole owner, and the Son is the sole beneficiary. Both Mom and Son are living. ] I was told by the new account representative that it would not be necessary to reduce the balance in the account since there were two people on the account and was further told why : " since there are two people on the account, the owner and the beneficiary each receive {$250000.00} FDIC insurance coverage '' bringing the total that could be insured to {$500000.00} in this one account. I informed the new account representative that the FDIC does not insure beneficiaries, whereupon the new accounts person XXXX an article not written by the FDIC, which showed an example of a POD account having one owner and five beneficiaries, and that each of the five beneficiaries would receive {$250000.00} in FDIC insurance. I stated during our interaction, more than once, that he should consult the FDIC website, but that was not done. 

The next day I called the FDIC and verified that an individual POD account with one beneficiary is not insured for more than {$250000.00}, and also verified that beneficiaries are not insured, only the owner is insured. I also printed out screen prints from the FDIC website which showed that an individual POD account which had {$250000.00} would have {$8000.00} in funds that would not be insured, and that only owners, not beneficiaries, are insured. 

On Wednesday, XX/XX/XXXX, I went into the bank branch and spoke to a person who handled the branch operations. She looked at the printed screen prints and stated that the information I had printed was correct. She also stated that she would look into the matter and get back to me. ( She seemed quite sincere and shared my concern and may be actively working on this but as of the morning of  XX/XX/XXXX, there has been no contact made. ) I am a retired XXXX  who has taught XXXX XXXX XXXX to XXXX XXXX employees, and have worked for five XXXX XXXX, three of which went under and the funds in their accounts had to be covered by the FDIC, so I am very concerned that the consistent misinformation and poor advice being given to the customers of BBVA over the last few years could easily result in the loss of customer funds. 

I was told that BBVA employees go through computer based training on FDIC insurance twice a year. This training has obviously had no effect. 

The address of the branch of BBVA bank where the events above occurred, is XXXX XXXX XXXX XXXX, in XXXX, California. On this occasion, the name of the Senior Financial Sales Advisor II, is XXXX XXXX, though he isn't the only person there who has given inaccurate FDIC information and advice.

Company response to consumer: Closed with explanation