Consumer complaint received 2018-06-29
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: MI
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/XXXX I deposited a check for {$6700.00} after hours ( around XXXX at Bank of America in XXXX, XX/XX/XXXX ) making the deposit day XX/XX/XXXX. The atm printed out a receipt for me indicating that {$200.00} was immediately available and that {$4200.00} or so would be available on XX/XX/XXXX and that the remainder would be available XX/XX/XXXX. 

On XX/XX/XXXX the {$200.00} was taken out of my account and an extended hold was put on my account for the entire amount of the check. I was told when I called the XXXX number for the bank ( Bank of America ) and was told that my funds would be available by XXXX on XX/XX/XXXX. 

The following day, on XX/XX/XXXX I called the bank to get them to reverse an overdraft fee caused by their extended hold. The bank then informed me that none of my deposit would be available until XX/XX/XXXX. They could not explain to me why. They spoke to the back office and requested that the hold be lifted and they could not get this accomplished. I asked for the reasoning behind the hold and was told nothing. 

I called the branch where I had deposited the check ( XXXX, XX/XX/XXXX ) and spoke to the assistant and the branch manager. I was told that there were questions regarding the validity of the check. I reached out to the people who wrote the check - this is a check from a title company from the sale of my home. This check is written from an escrow account. The money should absolutely be there. The title company checked with their bank and informed me that the check had already cleared the issuing institution ( XXXX XXXX XXXX ). 

I called the branch back and informed them that they have the money from the check already. They were not able to help me and informed me that I had to come into the branch for them to pull up specific details. 

On XX/XX/XXXX I went into the XXXX, XXXX Bank of America financial center.  They researched the hold on my account ( the branch employees were very polite and helpful although the issue did not get resolved ). 

I was informed that they have placed an extended hold on my account based on an exception to FDIC regulations. The exception they claimed is reasonable cause to doubt collectability. However, the reasons they gave for this reasonable cause were that the check sequence was out of order and that the signature line was not normal. I believe the check says 2 signatures are required over {$5000.00} and there was only one signature. Something I didnt realize until after I had deposited the check. However, the check has already cleared XXXX XXXX XXXX and the funds have been sent to Bank of America. 

I asked them why they would not remove the hold despite the check already having cleared the account it was written from. They informed me that they believe the check could be fraudulent and that despite getting the money, they basically expect to have to give it back. 

I asked them if they can verify the check with the issuing institution. They said no. I asked them if they could verify the check details with the title company. They said no. I informed them that there were other checks written ( for a lien on the house and to the other owner ) that have already cleared without issue at other financial institutions. 

The branch manager was able to authorize a {$500.00} withdrawal from the check but was not able to otherwise lift the hold. I moved out of the house I sold ( obviously ) and I cant move into a new home until I have the money from this check available. I am currently homeless because of this extended hold on my check. 

I do not understand how a check from a title company from an escrow account from the sale of my home could possibly be high risk. I do not understand how Bank of America cant communicate with XXXX XXXX XXXX or the title company to verify the check. 

I read the FDIC regulations regarding funds availability and extended holds. The exception for reasonable belief that the check wont clear states several examples. Those examples include checks with inappropriate dates and communication with the issuing institution regarding the check not being valid. 

If they can communicate about the check not being valid then why can they not communicate about the check being valid? 

I am homeless while I wait for this check to clear. I have requested several times to be able to close my account or to stop the check but Bank of America has said that since the process has already begun they can not stop it. The title company can not stop payment on the check either since it has already cleared their account. 

I do not believe that this is a valid use of this extended hold exception. I believe that this is discriminatory against me. I have been very poor the last few months. Selling my house was so important because I havent been able to buy even food. I left an abusive marriage and my credit was wrecked during that abuse. I am being treated badly by this bank because 1 ) they assume I am too stupid to question them and 2 ) they assume that because I am poor I am committing fraud despite no other indication. 

The bank indicated that they mailed me a letter regarding the extended hold on XX/XX/XXXX. I have yet to see this letter but the hold schedule was changed A SECOND TIME on XX/XX/XXXX and they did not indicate that a second letter was ever mailed to me indicating why the hold had, again, been extended. 

If this issue cant be resolved before XX/XX/XXXX then I would like some form of reimbursement for damages caused by the banks misconduct. I am being forced to not move in to my new home. I could potentially lose this home depending on how long this takes. Also, I get around via lyft and I can not use my debit card as my account is negative. I am forced to either buy a prepaid card and pay crazy fees or to open another account at a different institution. Even with opening a different account I likely wont have access to a debit card for awhile. The original hold schedule would not have caused this harm to me. If I had been informed of the situation and offered the option to cancel the deposit I could have requested a wire transfer from the title company or a rewritten check with both signatures. I have been given no good options here and am forced to remain homeless until XX/XX/XXXX. ( It is XX/XX/XXXX today ). 

This is not an acceptable practice. Especially if the funds have already cleared. There must be a better way. This is ridiculous.

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