Consumer complaint received 2023-05-07
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: FL
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Other transaction problem

Complaint:
THIS IS LETTER I SENT BANK OF AMERICA in LATE XXXX, XXXX. I ALSO EMAILED THEIR EXECUTIVE OFFICES. THEY RESPONDED BUT SAID THE TERMS OF BANK OF AMERICA AND XXXX IS THAT IF MONEY IS SENT, IT'S GONE, UNLESS I CAN PROVE THEIR LIABILITY : On XX/XX/XXXX and XX/XX/2023, I entered an incorrect phone number, XXXX, and sent {$350.00} total ( {$150.00} + {$200.00} ) to that incorrect phone number while using XXXX and being logged into my Bank of America account. I made a mistake that many others have also made, many who have brought and will bring legal action against their banks and XXXX under the EFTA. 

The Consumer Financial Protection Bureau issued a statement that XXXX transactions are covered by the EFTA, Reg. E, and therefore, federal law requires Bank of America to refund or credit my account : The Electronic Fund Transfer Act ( EFTA ) and Regulation E apply to an electronic fund transfer that authorizes a financial institution to debit or credit a consumer 's account. 12 CFR 1005.3 ( a ). 
The term account means a demand deposit ( checking ), savings, or other consumer asset account ( other than an occasional or incidental credit balance in a credit plan ) held directly or indirectly by a financial institution and established primarily for personal, family, or household purposes. 12 CFR 1005.2 ( b ) ( 1 ). It includes a prepaid account, as defined by Regulation E. 12 CFR 1005.2 ( b ) ( 3 ).

The term electronic fund transfer or EFT means any transfer of funds that is initiated through an electronic terminal, telephone, computer, or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit a consumer 's account. 12 CFR 1005.3 ( b ) ( 1 ). Accordingly, Regulation E applies to any person-toperson ( P2P ) or mobile payment transactions that meet the definition of EFT, including debit card, ACH, prepaid account, and other electronic transfers to or from a consumer account. 12 CFR 1005.3 ( b ) ( 1 ) ( v ) ; Comment 3 ( b ) ( 1 ) -1.ii.

Futhermore, the EFTA states that a credit/refund must be issued if an error is made. In this case, despite the Bank of America letter that erroneously claims no error was involved, so the Bank has no liability, under the EFTAs definition of error listed below, there was clearly an error of an incorrect phone number being entered by me and the money being sent to an incorrect person, thus falling under the protection of the EFTA. The pertinent part below is this section of the error definition : An incorrect EFT to or from the consumer 's account ; The EFTAs full definition of error and directions to the bank to immediately credit the account holder of the funds involved : Procedures for Resolving Errors Section 205.11 This section defines " error '' and describes the steps the consumer must take when asserting an error in order to receive the protection of the EFTA and Regulation E, and the procedures that a financial institution must follow to resolve an alleged error.

An " error '' includes any of the following : An unauthorized EFT ; An incorrect EFT to or from the consumer 's account ; The omission from a periodic statement of an EFT to or from the consumer 's account that should have been included ; A computational or bookkeeping error made by the financial institution relating to an EFT ; The consumer 's receipt of an incorrect amount of money from an electronic terminal ; An EFT not identified in accordance with the requirements of sections 205.9 or 205.10 ( a ) ; or A consumer 's request for any documentation required by sections 205.9 or 205.10 ( a ) or for additional information or clarification concerning an EFT. ( Section 205.11 ( a ) ( 1 ) ).

The term error does not include : A routine inquiry about the balance in the consumer 's account or a request for duplicate copies of documentation or other information that is made only for tax or other recordkeeping purposes. ( Sections 205.11 ( a ) ( 2 ) ( i ), ( ii ), and ( iii ) ).

The fact that a financial institution does not make a terminal receipt available for a transfer of {$15.00} or less in accordance with 205.9 ( e ). ( Staff Commentary 205.11 ( a ) -6 ).

A financial institution must comply with the error resolution procedures in Section 205.11 with respect to any oral or written notice of error from the consumer that : The financial institution receives not later than 60 days after sending a periodic statement or other documentation first reflecting the alleged error ( but see 205.14 and 205.18 ) ; Enables the financial institution to identify the consumer 's name and account number ; and Indicates why the consumer believes the error exists, and, to the extent possible, the type, date, and amount of the error. ( Section 205.11 ( b ) ( 1 ) ) A financial institution may require a consumer to give written confirmation of an error within 10 business days of giving oral notice. The financial institution must provide the address where confirmation must be sent. ( Section 205.11 ( b ) ( 2 ) ) Error Resolution Procedures. After receiving a notice of error, the financial institution must : Promptly investigate the oral or written allegation of error, Complete its investigation within 10 business days, ( Section 205.11 ( c ) ( 1 ) ) Report the results of its investigation within three business days after completing its investigation, and Correct the error within one business day after determining that an error has occurred.

The financial institution may take up to 45 calendar days ( Section 205.11 ( c ) ( 2 ) ) to complete its investigation provided it : Provisionally credits the funds ( including interest, where applicable ) to the consumer 's account within the 10 business-day period ; Advises the consumer within 2 business days of the provisional crediting ; and Gives the consumer full use of the funds during the investigation.

Finally, the phone number that I sent the money to was also registered with XXXX. A Bank of America rep told me to call that person and try to get the money back. Neither Bank of America nor XXXX would offer any help. I called that number, and as expected, we began arguing when the person denied receiving the money ( the transfer to this person can easily be traced, so denials are irrelevant ). It is hard to believe that Bank of America and XXXX would pit me and this person who received the money against each other. It is completely foreseeable by Bank of America and XXXX that a conflict would arise in such a situation. 
Foreseeability is the basis of all civil case claims, so in essence, telling customers to fight it out is outrageous. We are not talking about fraud or a scam, these are two bank account holders whose identities are known. 
Bank of America and XXXX should both have a process to handle such occurrences on their end without encouraging conflict. 
Thank you for your attention and anticipated quick action to credit/refund my clients account for {$350.00}.

Company response to consumer: Closed with explanation