Consumer complaint received 2020-01-22
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: MA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
My wife and I informed Bank of America of an unauthorized electronic fund transfer on our account, which occurred on XX/XX/XXXX in the amount of {$760.00}. Bank of America refused to accept our verbal claims, which occurred via an online chat on XX/XX/XXXX, a phone call on XX/XX/XXXX, and another phone call on XX/XX/XXXX. Bank of America recorded a phone call on XX/XX/XXXX between XXXX, XXXX XXXX XXXX, and my wife who is a joint account holder. On that call, XXXX indicated they did not process our transaction and a direct bill occurred from XXXX  XXXX XXXX. The call also acknowledged that we cancelled our reservation within the timeframe set forth by the hotels policy and the transfer was unauthorized. We discovered the error on XX/XX/XXXX after reviewing our XXXX transactions for tax purposes and immediately reached out to XXXX  XXXX XXXX. However, XXXX  XXXX XXXX has not been cooperative, which is why we initiated the claims process. 

According to Regulation E ( 12 CFR 1005.11 ) our notice was late to the extent the Bank is not required to follow the standard procedures for resolving errors. However, our assertion of error involves an unauthorized EFT and the Bank must comply with 1005.6 before it imposes any liability on us. Bank of America has not complied with the liability requirements set forth by 12 CFR 1005.6 ( b ) ( 3 ), which states the following : A consumer must report an unauthorized electronic fund transfer that appears on a periodic statement within 60 days of the financial institution 's transmittal of the statement to avoid liability for subsequent transfers. If the consumer fails to do so, the consumer 's liability shall not exceed the amount of the unauthorized transfers that occur after the close of the 60 days and before notice to the institution, and that the institution establishes would not have occurred had the consumer notified the institution within the 60-day period. 

We are not claiming any errors occurred within 60 days after transmittal of the Bank 's periodic statement or even after that period ; there were no subsequent unauthorized transfers. In addition, Supplement I to Part 1005, Paragraph 6 ( b ) ( 3 ) 2. of the Regulation states the following : Transfers not involving access device. The first two tiers of liability do not apply to unauthorized transfers from a consumer 's account made without an access device. If, however, the consumer fails to report such unauthorized transfers within 60 calendar days of the financial institution 's transmittal of the periodic statement, the consumer may be liable for any transfers occurring after the close of the 60 days and before notice is given to the institution. For example, a consumer 's account is electronically debited for {$200.00} without the consumer 's authorization and by means other than the consumer 's access device. If the consumer notifies the institution within 60 days of the transmittal of the periodic statement that shows the unauthorized transfer, the consumer has no liability. However, if in addition to the {$200.00}, the consumer 's account is debited for a {$400.00} unauthorized transfer on the 61st day and the consumer fails to notify the institution of the first unauthorized transfer until the 62nd day, the consumer may be liable for the full {$400.00}. As you can see from this example in the Regulation, we are not liable for the initial {$760.00} unauthorized transaction, even though our notice to the Bank was beyond the 60th day.

We submitted a written notice to the Bank to investigate and resolve the error. We would also like the Bank improve its procedures and training related to the Regulation and our customer experience.

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 monetary relief