Consumer complaint received 2023-01-25
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: KS
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Fee problem

Complaint:
I opened Bank of America savings and checking accounts in XXXX  after being honorably discharged from the XXXX XXXX XXXX XXXX XXXX XXXX XXXX. At all times my account was open, I had monthly XXXX XXXX XXXX XXXX XXXX into my checking account, and from XXXX  to XXXX, I had my XXXX XXXX checks also direct deposited into the same account. Later, I opened a Visa credit card with Bank of America, and years after that, I opened a Mastercard credit card with Bank of America. 

At the start of XXXX, I was in a precarious financial situation. I had just moved to a new town in a new state and started a new job as of XXXX XXXX XXXX. A trip to visit and stay with a longtime friend in XXXX in XXXX XXXX  had suddenly turned ugly and, to leave the environment, I had to spend hundreds of dollars in travel and hotel expenses, completely unanticipated. My credit cards were numerous and many were maxed or close to maxed. I was barely starting to receive regular paychecks from the new job I had begun in XXXX. Still, my head was above water and it would have stayed that way had I avoided the nightmare I was about to enter with my longtime bank, Bank of America.

I received an email on XXXX XXXX XXXX notifying me that I had overdrawn my account. I had little money in my account when a number of automatic payments drafted at the beginning of the month, each incurring a XXXX XXXX XXXX With three days, I was suddenly negative close to XXXX  in my checking account. I was horrified. I had never experienced this before. On XXXX XXXX XXXX, when a paycheck from my job was deposited for XXXX, I was left with XXXX Desperate, I set up a Bank of America appointment and explained my situation, in tears, to a representative. She issued me a partial refund of the bank fees, XXXX, on XXXX XXXX XXXXXXXX. As the fees continued to pile on, I again visited Bank of America customer service representatives in person, and over XXXX XXXX  I was issued credits totaling XXXX. Despite repeated attempts by phone and another time in person, this would be the final assistance I would receive from Bank of America. The surprise and unanticipated overdraft fees, and unfair and deceptive banking practices, however, never ceased until I abandoned my checking (and savings) account with Bank of America the first week of XXXX  XXXX.

An overdraft fee was assessed XXXX XXXX XXXX, despite the available balance showing a positive amount. It was this $XXXX  fee that would drive me negative and shortly later, another overdraft fee was assessed for an amount paid of only XXXX The same thing happened on XXXX XXXX XXXX, and even the account notice of XXXX XXXX XXXX shows a positive account balance of XXXXXXXX even after the transaction was paid and the XXXX   fee was assessed. One of the transactions that assessed a XXXX fee that day was for a XXXX   transaction. Then, again, on XXXX XXXX XXXX I assessed four $XXXX  overdraft fees despite my available balance never appearing negative. One of those transactions was for XXXX   at XXXX, an online craft store where I likely purchased something completely unnecessary. The next day, XXXX XXXX XXXX, another XXXX   was assessed while I had a positive available balance and while again I was purchasing unnecessary clothing items thinking I had hundreds of dollars in my account. Like so many of these transactions that assessed an overdraft fee, there is no way I would have been online shopping if my account showed a negative balance. Like every single overdraft fee referenced in this complaint, these were absolutely surprise and unanticipated overdraft fees. On XXXX XXXX XXXX when I purchased a handbag online at XXXX.XXXX, the transaction was treated as a point of sale transaction, and a fee was waived, while many many times an online retail transaction was classified as an electronic payment and assessed a fee. These practices, I still do not understand. Over these months, many POS transactions were waived, while others, which were also onsite debit card transactions, were classified as electronic payments and assessed a fee. The next day on XXXX XXXX XXXX, I incurred two more XXXX  overdraft fees, and my bank account available balance showed negative; in the two days prior, I had been assessed XXXX XXXX   overdraft fees, totaling XXXX   despite maintaining a positive available balance the entire time.

In two statement periods, I had incurred XXXX XXXX XXXX of them surprise overdraft fees. In two statement periods, my bank had charged me XXXX  in bank fees.

At some point, after clicking on text shown in my online banking account, I discovered a separate accounting system, where there was a different accounting system from what was shown to me on my online account, and supposedly this accounting was used to determine whether an overdraft fee is assessed (included). It was impossible for me to understand the ordering of transactions and their significance, as well as the importance of processing transactions that never showed a clear posting date,  but this separate system, which Id never been aware of prior, seemed patently unfair. It showed clearly that Bank of America was taking money from me in ways that I could not possibly anticipate.

On XXXX XXXX XXXX, and XXXX XXXX XXXX, this practice of authorize positive, settle negative continued. At the start of XXXX XXXX, XXXX, my available balance was over XXXX, yet somehow I dropped into the negative the same day. What I saw was a positive balance, and yet still, multiple overdraft fees charged. Both my online banking transactions as well as account notices issued show a positive available balance, even after fees assessed. Also, strangely, I incurred two fees on two payments to XXXX XXXX despite being billed monthly for that account, within two days. Then on XXXX XXXX XXXX, after incurring four overdraft fees in the two days prior, I could suddenly see I had sunk negative, and again was assessed two more overdraft fees for transactions dated XXXX XXXX XXXX. One again, was for a XXXX   transaction. A few days later, on XXXX XXXX XXXX I was assessed a XXXX overdraft fee for a XXXX   transaction, a mistake of XXXX who issued a refund that posted to my account within days.

In the next statement period, I was charged a XXXX  fee twice for a $XXXX  automatic payment that is supposed to draft once a month. I was charged a XXXX  fee for a transaction of XXXX  to XXXX that I do not recognize. On XXXX XXXX, Chase drafted the entirety of my statement balance vs. the minimum payment as instructed. They reversed the charge, but Bank of America, despite the mistake of XXXX, charged me a XXXX  returned item fee. On XXXX XXXX XXXX, I made a transaction at XXXX while I had a positive available balance, show on the transaction history as well as the account notice, and still incurred a XXXX   overdraft fee.

At the end of four statement periods, I had been charged XXXX  in bank fees, nearly all of them XXXX  overdraft fees, a total of XXXX thus far. 

On XXXX XXXX XXXX three overdraft fees were assessed when a large number of items suddenly posted at once. This practice would occur over and over again, transactions would post that I had entered into as many as six days prior, and my bank account available balance would drop dramatically, suddenly incurring overdraft fees, which would worsen the situation. Many times I would see processing at the top of on my online account banking view, on as many as a dozen items, and then, at some point, an item would suddenly drop off. I would contact retailers, including XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX who said they had issued refunds to my bank and yet an item would still show as processing, or a refund would not post for days, sometimes weeks. Items that were returned on the same day would often result in a partial refund, with the rest of the monies not being posted till sometime later. This was all inexplicable.

Exacerbating the situation, of course, was the global Covid-19 pandemic. I spent hours upon hours, the majority of it on hold waiting, to speak with customer service representatives at various retailers, trying to sort out these issues. Some charges were erroneous, for example, the XXXX   transactions to XXXX XXXX were posted after I had canceled a free trial, yet it took several attempts over the course of a month or more to speak to someone to rectify the situation. 

Again, strangely, I incurred bank fees on the same automatic drafts repeatedly, such as payments to XXXX  for XXXX and an electronic check to XXXX  for XXXX. Again and again, these payments seemed to draft (post) inconveniently for my checking account. Also, the majority of my overdraft fees were incurred on the same day, or, in other words, I suffered, again and again, over months, multiple overdrafts incurred in a single day versus, for example, 10 single fees issued over 10 days.  And so many of these XXXX   fees were assessed on very small transaction amounts, XXXX  and XXXX  dollars even. And, as mentioned before, a suspect number of transactions that incurred fees were for unnecessary retail items, transactions I would never have entered into if I was anywhere close to a negative balance. I believe each of these situations, easily verifiable by the documents provided, calls into question the system used by Bank of America to post debits and provide credits. A system that is virtually inaccessible to the consumer, and even if provided, likely incomprehensible.

On XXXX XXXX XXXX I received an email from the VA touting its newly created XXXX XXXX XXXX XXXX XXXX It provided a list of banks that were veteran friendly. I was shocked to see, among financial institutions like XXXX  XXXX, XXXX XXXX XXXX and dozens other small banks and credit unions catering to active duty and veterans outside military installations, a single mainstream bank on the list  Bank of America. I couldnt believe it. Bank of America had been repaying itself, for unfair and deceptive surprise and unanticipated overdraft fees, out of my VA disability payments. They had wreaked havoc on my finances in the preceding months, causing late payments, closed accounts, lowered credit limits, and, most devastatingly, constant anxiety, stress, worry, and shame. In XXXX XXXX XXXX days would go by where I would not eat as I waited in the negative for any credit or refund to post. I could not believe the advertisement by Bank of America in my XXXX XXXX: Support for the XXXX is an integral part of Bank of Americas culture and permeates every aspect of the business[.] I felt like it was a lie. I felt betrayed by Bank of America, especially in light of our long relationship and its public announcement promising to waive overdraft fees during the pandemic; I felt like they had stolen from me. I wanted to get away from them at that point, because I could not seem to get from under assessing multiple overdraft fees each statement period, no matter how I made use of my money, or how carefully I checked my account.

Thus, I applied to open a checking and savings account at XXXX. When I was denied, it was another shock. I had high credit card balances, but at the close of XXXX there were no serious negative marks on my credit report; I was and am a financially responsible person. But the months of financial upheaval, in the middle of a global pandemic, had led to serious negative consequences for my creditworthiness. In XXXX, I needed a cosigner to open a bank account. In XXXX, I was turned down for an apartment because of my credit history. Later that year, I could not even obtain a car loaner with a cosigner. Credit-wise, my name and history, something Id once been proud of, had become toxic. 

When I received the denial from XXXX XXXX XXXX XXXX, I became even more desperate. I made an appointment online and went into a Bank of America banking center in XXXX XXXX. I was very nervous based on the lack of support Id received thus far. The appointment was awful. The representative I met with was so unprofessional and handed me a document (included) that I had no faith would resolve my issues. At that point, I was due hundreds and hundreds of dollars in overdraft refunds. I insisted the issue be resolved before I left the banking center. The representative then had security escort me out. It was outrageous. I remember feeling that I wanted to call the police for help. How absurd, but thats how wrong and unfair and completely inexplicable everything felt.

Although, I managed to reduce the number of overdraft fees I was charged per statement in the following months, it seemed like nothing I did or didnt do could stop me from incurring surprise and unanticipated fees. It felt like a trap I could not get out of, an unfair completely harsh system inflicted on vulnerable consumers, during an unprecedented global pandemic, by one of the most well-known financial institutions. 

I had read horrible reviews of Bank of America online and over and over again, I heard about consumers having their checking accounts closed without warning. I could not imagine trying to transition to a new bank, and the huge headaches that go along with it, if my Bank of America accounts were suddenly closed. Eventually, with the help of my mother, I was able to open new accounts at a different financial institution in XXXX XXXX and abandoned my Bank of America account as they continued to assess fees to my account driving the negative balance lower and lower. I still do not know when the accounts were actually closed, however, I continue to pay diligently on two Bank of America credit cards.

There are no words to adequately describe the damage Bank of Americas deceptive and unfair practices caused in my life, especially to my credit, which is long lasting and a serious impediment to things I used to take for granted, like qualifying for a loan or renting an apartment. I am also still owed a refund of XXXX, although no amount of money will compensate me for what I experienced due to Bank of Americas abusive and predatory practices, just absolutely unbelievable behavior and actions from a bank Id long trusted.

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