Consumer complaint received 2022-09-30
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: AZ
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Confusing or missing disclosures

Complaint:
In late XXXX I was notified by a relative that a treasury bond that was left in my name by my grandmother who passed away in XXXX had been found, and that it had just matured in XXXX of XXXX. My relative mailed me the bond information to cash the bond. 

On XX/XX/XXXX I took the newly matured treasury bond with supporting documentation, death certificate, copy of bond, and identification, to a Bank of America in XXXX Arizona. They reviewed my documentation, and asked me how I would like the funds from this treasury bond. I chose to deposit the money in my checking account. They also provided me a receipt and copy of their system showing me the bond information. At no point that did I think this bond was already cashed or declared lost. At no point did they tell me that these funds might need to be paid back, or that further reviews would occur after the funds were provided that could result in me receiving funds that would need to be paid back. The transaction was processed successfully and the funds were in my account the next business day. 

On XX/XX/XXXX, over 60 days letter, I received a written notice via United States Postal Service, dated, XX/XX/XXXX from the Bureau of the Treasury Fiscal Services. The notice stated that I owed the amount of the matured treasury bond that I had just received the cash on XX/XX/XXXX, XXXX back to the Treasury department by XX/XX/XXXX, before interest would begin accruing on the balance. 

Concerned, and very surprised, I called the collections phone number on the notice and spoke with a woman who was only concerned about payment, she could not provide me details about the bond and was this owed back, I asked to file a dispute. She informed me, on XXXX that paperwork for a dispute would be sent to me, but she had no guarantee when it would be there. I informed her this was time sensitive given their deadline for interest starting in less than 30 days, but that did not help. The whole timeline and communication was so absurd, that it lead me and several others who I consulted to believe these were fraudsters. 

The following week, on XX/XX/XXXX I received the dispute form from the Bureau of the Treasury fiscal service, via USPS mail. In the notice there was a form and a dispute phone number to call. I began gathering my documentation for submitting the dispute and ultimately filed the needed paperwork to them on XX/XX/XXXX. 

I also called the number on the " CRS dispute '' notice and spoke with several representatives, and eventually the manager at the bureau of the fiscal service, XXXX. He informed me that the bond had been declared lost in XXXX, that the treasury department had paid the bond to a me for the face value of the bond, and that there was nothing that could be done to push out the start date on the interest that would begin on XX/XX/XXXX. ( it seemed reasonable and fair that the interest would not start until the treasury department had time to do their due diligence and allowed for their dispute processing times. ) this could not be altered and was not fair to the consumer. The team told me that the account owed had been placed on " hold '' but that hold did not mean that interest who not start while they reviewed the documentation. That's very confusing and not much of a hold on an account if the balance is ever changing. 

Moreover, I had discussions with the manager about how/ why the treasury in conjunction with XXXX XXXX  and Bank of America could allow this treasury bond that was claimed as lost in XXXX at a XXXX  XXXX, and then claimed as matured in XXXX, 7 years later could be cashed at a bank of America XXXX Where was the ball dropped in communicating this security had already been cashed? 

This system of being allowed to cash a treasury bond for funds that will ultimately need to be paid pack is a broken system. There are no other financial situations where someone is allowed to take cash out of a bank and without notice be asked to pay this money back AND be threatened with penalty in such a short time span. 

I was told by my relative this was a different bond, than the one that was lost, and when my grandmother had passed there were several bonds that were floating around so there was a mistake on her record keeping of the bonds it seems. ( dispute is still pending. ) I had no reason to believe that I would be given funds if the bond was declared as lost. 

I had used the, XXXX in treasury funds received on XX/XX/XXXX to pay off credit cards, and make improvements to my living situation and apartment. To pay these funds back I had to close a retirement account in late XXXX when my retirement funds were at a 5 year low in order to meet the deadline before interest began accruing. I have taken on substantial financial loses in my long term retirement as a result of this debacle and lack of communication between the 3 financial institutions. Additionally, I understand from talking to a manager at the Bureau of fiscal service this exact situation where a bond is declared lost and then cashed and needs to be paid back to the treasury happens far to much! 

When I spoke with the manager at the Bureau of Fiscal service I asked him, if the Banks require social security number, Drivers License, a death certificate, copy of the bond, and the bank has to go into their system to validate this information before paying out the bond. Why isnt there a flag or a field that states, " this bond has already been cashed, and is not available for redemption ''? This is simple, and it saves someone like me the confusion, it saves Treasury and the fiscal service time on disputes and phone calls, and most importantly it protects the consumer from a mistake that is happening all the time! Wow. 

Hoping someone help me with getting at least some financial relief, and compensate me for my XXXX XXXX XXXX, lost retirement savings, and increase in taxes that will be owed for XXXX as a result of selling roth IRA early and XXXX being added to my grosse income. 

Money should not be paid to consumers if its required back via a notice under 30 days before interest begins accruing. This process is so ludicrous that when I spoke with my financial advisor she was immediately concerned this was Fraud! No it was just the US government and 2 leading banks failing to communicate, again. 

Please help.

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