Consumer complaint received 2023-01-21
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Credit card or prepaid card
Sub-product: Government benefit card
Issue: Problem with a purchase or transfer
Sub-issue: Charged for a purchase or transfer you did not make with the card

Complaint:
On XXXX XXXX XXXX to my card was loaded with my XXXX  benefits. When I woke up on XXXX XXXX at XXXX XXXX I discovered that my purse had been stolen from my car inside my purse with my wallet inside my wallet was my debit card or a prepaid card from Bank of America for XXXX benefits.  

Ive I never seen that. My car has been broken into in my personal. I immediately got online and locked my XXXX  benefits card, and saw immediately that there was three transactions that I did not make. After seeing this, I immediately looked at my three other credit cards and found that there was transactions on each of those that were not made by me.

 I immediately got on the phone with Bank of America in notify them that my purse have been stolen from my car, and that they were transactions that were not mine that consumed almost all of my benefits that were just loaded onto the card. I explained to them that I immediately locked my card and following that I filed a police report. the phone with them to make them aware and dispute the charges.  

First, I was told I could not displaying any charges that were pending and I would have to wait 7 to 10 business days for those charges to be posted to the account before I could dispute them despite the fact that I already had a police report, and I told them that those charges were not legitimate mine, and that I was XXXX  because I was so XXXX  in need of the funds as my card I just been loaded. 

I was told by Bank of America to go back in after the transaction supposed to file a formal dispute. It took five days for the transactions to post to my account, allowing me to then call back to Bank of America and spend godly hours waiting on hold to speak to their claims department. After going through the process of filing and notifying them that the fraudulent activity and filing the claim on 4 transactions (1) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX thats were loaded to the card the night before. 

After filing the claim with Bank of America, I was told that it could take up to 90 days for them to respond and that there was nothing that they could do about the phones and there was nothing that they can do to help me cancel the pending transactions so that I could take the funds in my account. They said the only thing they could do was issue me a new card so they issued me a new card. I was told at the time that they could issue a provisional credit if the investigation wasnt complete within 21 business days 21 business days is a long time to go without any funds. I supplied Bank of Americas claim department with my please report not once not twice, but three times because they kept losing it and claim they never had it even though I had proof of the fax going through.  . No money for 2 weeks but Bank of America could have prevented this. But didnt. They could have cancelled the pending transaction and I would have my money back though obviously I would not be able to use the funds until my new card came in the mail, which by the way they had to be in two business days. days for the dispute begin.   

I called every other day and spoke to the claims department looking for an update on my claim Nothing two weeks went by and there was no update.  

During my call on XXXX XXXX  with Bank of America claims department looking for an update after spending almost an hour and a half on hold. I spoke to an agent who told me your claim has been processed. You should receive your credits within the next 24 hours in my opinion, that meant all of my claims have been processed, and that I would be receiving the credit for all four transactions.  NOT TRUE. The next day there was a dispute refund to my account for $XXXX. None of the other charges No explanation know nothing.  I once again get on the phone and call Bank of America claim department and spent 47 minutes on hold and finally spoke to a supervisor who told me they mailed your letter letting you know why the other items were denied. I said OK well since you guys still use snail mail, could you please advise me on the reason and if there is an appeals. I was told that at that time the other three claims were denied because they did their investigation and determined that either I or someone  l let you use my card made those transactions.  There is no proof, no explanation no  nothing. All I had to do was take their word for it and I told him that that was absolutely unacceptable and they just approved one of the fraudulent transactions that all happened at the same time same location same vicinity why would they not approve the others, and the Lady was so rude and told me nothing. 

I was told I could request copies of the documentation that they use to determine their decision and that I could also file for a reevaluation. I explain to the customer service agent that I absolutely want to copies of the documentation that they use and furthermore, I wanted all of my claims to be re-looked at because they approved one but didnt approve the other three which made no sense because the transactions all happen back to back to back with each other, and it was not made by me and I was not even in the vicinity to make those transactions I confirmed that they had my please report on file as well to support my claim and to lo and behold they did not have it so I had to send it again for the fifth time, and I kept the supervisor on the phone with me until she received it and place it in my file. The supervisor made a note that it was strange that they approve one transaction, but not all of the transactions given the situation and that the police report was included. I was told it would take up to 15 business days for me to receive the documentation that they used to determine my claim and in the meantime, they would submit my claim for a reevaluation 
On XXXX XXXX I received a piece of paper in the mail, and that was my explanation of the reason for denying, and all it was was literally a copy of my online check, register, showing the transactions that have been made in the account. No proof that a pin was used or not used for making the purchases or transactions. No video surveillance no evidence none zero but yet they had a police report that completely showed them and prove to them that my information was stolen and not only that I also explained to them that I had four other credit cards that were charged, and that I was in the process of disputing.  NO PROOF NO REAL INVESTIGATION NO NOTHING. 

I am mediately got back on the phone with Bank of America spoke with her claims department and let them know that I absolutely contested I want to appeal their information used because there is no way that they did an investigation if that is all of the other if they came back with, and furthermore, it literally took them three weeks to be able to come up with a copy of my check register that is ridiculous. I was told that they in fact submit for a third review of my claim and she flat out told me it being so it has already been denied the first and second time you can pretty much assume that it will be denied the third time unless you have additional information to submit to be considered I told her the only additional information I had had already been submitted five times and luckily she confirmed that it was still part of the account and part of the case and that wouldve been the police report The police report was not even listed as their evidence, and used to, or assisted in the determination of the case of the outcome of the case  

I requested a provisional credit or any form of assistance while they continue their investigation their fake investigation, and I was told that once a claim is denied provisional credits are no longer an option. It doesnt matter how many times it gets reinvestigated or reluctant, and if there was nothing, they could help me do to get my $XXXX  back.   

Here we are XXXX and I still have no final
Results from Bank of America. According to them, the claim is be reevaluated as requested and a half up to 90 days to respond.   So far still nothing. The original 90 days start from the very day that you asked for it to be reopened not from the original claim. 

I have missed my rent payment and my utilities and my car payment that is supposed to be my means to look for work. All because bank of Americas is a scam and they have no real investigations and clearly this is an ongoing issue because just this past year a few months ago they were find XXXX XXXX per this article for the same exact allegations. I am not the only person youre doing this to add this needs to stop

Financial Protection Bureau (CFPB) fined Bank of America XXXX XXXX for botching the disbursement of state unemployment benefits at the height of the pandemic. Bank of America automatically and unlawfully froze peoples accounts with a faulty fraud detection program, and then gave them little recourse when there was, in fact, no fraud. Todays order requires Bank of America to undertake a process that is estimated to result in hundreds of millions of dollars in redress to consumers. In a separate order, the Office of the Comptroller of the Currency (OCC) is also fining the bank XXXX XXXX.

Taxpayers relied on banks to distribute needed funds to families and small businesses to rescue the economy from collapse when the pandemic hit, said CFPB Director XXXX XXXX. Bank of America failed to live up to its legal obligations. And when it got overwhelmed, instead of stepping up, it stepped back.

Bank of America XXXX XXXX is a national bank headquartered in Charlotte, North Carolina, with approximately 4,100 branches. It has been designated as a global systemically important bank by the Financial Stability Board, and as of XXXX XXXX XXXX, the company had XXXX XXXX  in consolidated assets, which makes it the second largest bank in the United States. The bank has previously been sanctioned by the CFPB. In XXXX, the CFPB ordered Bank of America to pay XXXX XXXX in redress to its victims for illegal credit card practices. And in XXXX  of this year, the CFPB ordered Bank of America to pay a XXXX XXXX civil penalty over unlawful garnishments.

Bank of America has contracts with various state agencies to deliver unemployment and other benefit payments to consumers electronically through prepaid debit cards and accounts. For example, since XXXX, Bank of America has had an exclusive contract with the State of California to deliver unemployment and other benefit payments to California consumers electronically through prepaid debit cards and accounts. Under the Electronic Fund Transfer Act, consumers are protected when they use electronic methods to transfer money; this includes prepaid cards. Protections include that after a consumer contacts the financial institution that there has been an error, the financial institution must conduct a prompt, reasonable, and timely investigation.

When the COVID-19 pandemic hit in early XXXX, the unemployment rate surged. Millions of consumers sought unemployment insurance benefits. The surge included a great deal of fraud. There was a significant amount of identity theft that affected eligible cardholders with legitimate prepaid debit card accounts but there were also a significant number of criminals who applied for and began receiving unemployment insurance benefits who filed false error claims to access additional funds.

In its investigation, the CFPB found that Bank of America engaged in unfair and abusive acts and practices that resulted in Californians not getting their unemployment benefits at the height of the pandemic, when many people needed the money the most. Specific findings include that the bank:

Replaced reasonable investigations with a faulty fraud filter: In the fall of XXXX, and continuing through mid-XXXX, Bank of America changed its practices for investigating prepaid debit card fraud on the unemployment insurance benefit accounts. Instead of conducting reasonable investigations, it implemented a fraud filter with a simple set of flags that automatically triggered an account freeze. This set a low bar to freeze the unemployment insurance benefits of many people, harming thousands of legitimate cardholders needing the money. The bank also retroactively applied its fraud filter to deny some notices of error submitted by prepaid debit cardholders that the bank had previously investigated and paid.
Left distressed consumers in the lurch: Bank of America made it very difficult for people to unfreeze their prepaid debit cards or for people to report fraudulent use of their cards. People with unemployment insurance benefit prepaid debit cards could not make reports online, or in person at bank branches. People were on hold for hours every day for weeks trying to talk to someone at the bank. Furthermore, the bank told customers they had agents available 24 hours a day, seven days a week, when, in fact, it operated a more limited schedule for its claim call center. Because Bank of America was the strongly preferred provider for California unemployment benefits, consumers were caught without any choice to switch providers.
Passed the buck to an overwhelmed state agency: When consumers sought assistance, the bank often sent them back to the California state unemployment department for verification in order to regain access to their benefits. But the bank knew the department was stretched and unable to provide services; the bank met with the department dozens of times in the summer of XXXX  and should have known it was essentially redirecting people into a black hole.

The attachment includes a screenshot of my transaction history showing the $XXXX  dispute and the $XXXX  refund it is failing to show the additional charges that were part of the same dispute once again their way of hiding what they have done. Red are they did not approve 

https://www.consumerfinance.gov/about-us/newsroom/federal-regulators-fine-bank-of-america-225-million-over-botched-disbursement-of-state-unemployment-
benefits-at-height-of-pandemic/

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