Consumer complaint received 2022-12-02
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/2022 I visited my local bank of America branch to make a routine counter deposit with the teller on duty who I requested deposit the instrument. The subject deposit was a US postal money order which is a class A financial instrument in the amount of {$990.00} which is mandated by the Federal Reserve Funds availability guidelines under regulation CC to clear next day when presented to the teller in person by the account holder, as such the teller advised me that my funds would be available for use the next day XX/XX/XXXX. However much to my surprise the funds were held for an exorbitant amount of time until XX/XX/2022, I was sent a letter notifying me of this regulation CC violation by Bank of America dated XX/XX/2022. The reason proffered in the letter ( see attached ) was that " A hold was placed on your checks because check specific information indicates item may be returned '' This a blatant violation of Reg CC as for employees to implement extended holds on US Postal money order deposits is in violation of the Expedited Funds Availability Act and 12 C.F.R. 229.10 ( b ) ( 1 ). Any competent banker should be aware that the extended holds would violate the EFAA and 12 C.F.R. 229.10 ( b ) ( 1 ). 

Again on XX/XX/XXXX I deposited 2 US Postal money orders, each in the amount of {$990.00} each into the ATM Regulation CC holds that when deposits of US postal money orders are not made in person ( for example, when they are made at one of your ATMs ), the funds must be made available by the second business day. In spite of the clear funds availability laws prescribed under REG CC I received yet another letter from BoA dated XX/XX/XXXX ( see attached ) claiming " A hold was placed on your checks because check specific information indicates item may be returned '' XXXX Next-day availability. clearly states that Certain check deposits- ( 1 ) General rule. A depository bank shall make funds deposited in an account by check available for withdrawal not later than the business day after the banking day on which the funds are deposited, in the case of - ( i ) A check drawn on the Treasury of the United States and deposited in an account held by a payee of the check ; ( ii ) A U.S. Postal Service money order deposited - ( A ) In an account held by a payee of the money order ; and ( B ) In person to an employee of the depository bank.

Per the Federal Reserve a reasonable cause to doubt the collectibility of a check -- Doubtful collectibility may exist for postdated checks, checks dated more than six months earlier, and checks that the paying institution has said it will not honor. The general criterion for doubting collectibility is " the existence of facts that would cause a well-grounded belief in the mind of a reasonable person '' that the check is uncollectible. The reason for your belief that the check is uncollectible must be included in your notice to the customer.

No reasonably prudent person would have reason to believe a US Postal money order would be of doubtful collectibility, the US postal money orders I will add are class A financial instruments backed by the US Treasury XXXX XXXX XXXX XXXX, furthermore Bank of America never specified the reason for their belief that the checks were potentially collectible which violates the Federal Reserve Rule, naturally all of the checks cleared after I was burdened with excessive hold times of 7 days.

These excessive and unlawful hold implemented by Bank of America caused me damages that I seek assistance from the CFPB to remedy as a financial institution of this caliber should not be conducting business in this lackadaisical manner when acting as my fiduciary. Please review the attached documents and have Bank of America why these actions taken by their institution violated Reg CC

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