Consumer complaint received 2017-12-28
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
1. My name is XXXX XXXX XXXX. On XX/XX/XXXX, Bank of America withdrew {$4900.00} from my Personal Joint Checking account number : XXXX.

2. This Personal joint checking account is in the name of me : XXXX XXXX and XXXX XXXX.

3. We called Bank of America onXX/XX/XXXX and we were told that the {$4900.00} withdrawal from my Personal Joint Checking Account was to SET-OFF debt on a credit card belonging toXX/XX/XXXX( Corporation ) that had a business credit card for XXXX XXXX. I, XXXX XXXX, had nothing to do with this business credit card.

4. There were two account numbers for that business credit card. One for the statement and the other was on the credit card as follows : Statement Account No : XXXX Credit Account No : XXXX ( Both are for the same Credit Card ) 5. This business credit card account was opened onXX/XX/XXXX, and the last payment was made around XX/XX/XXXX.

6. XX/XX/XXXX went bankrupt in XX/XX/XXXXand was dissolved in XX/XX/XXXX.

7. When we called Bank of America onXX/XX/XXXX and spoke to Recovery Department, we told them that I had nothing to do with the Business Credit Card or the Bankrupt company and that they SETOFF the debt for the credit card of a bankrupt company from my Personal checking account. We asked them to put the {$4900.00} back to my personal checking account.

8. They asked us to fax them the Bankruptcy Court paper and they stated that after they reviewed the documents, they would redeposit the money back to my account.

9. We faxed the document onXX/XX/XXXX, and gave them tillXX/XX/XXXX, to deposit my money back to my personal checking account.

10. On XX/XX/XXXX, we received a call from XXXX XXXX XXXX ( direct telephone number is XXXX ) from Bank of America and she said the matter was escalated to her department and if an attorney would write a letter and confirm XXXX XXXX XXXX bankruptcy, they will redeposit the money back to my personal checking account.

11. Our attorney sent them a letter onXX/XX/XXXX, and gave them until XX/XX/XXXX to respond. Since XX/XX/XXXX our attorney also left two telephone messages for XXXX XXXX As of today 's date ofXX/XX/XXXX they have not responded.

12. I have done some research. The law says that in case of a Joint Account the bank CAN NOT Setoff a debt due from one person against the joint account. Also, the bank CAN NOT transfer money from the credit balance of a particular joint account in satisfaction of the debit balance of an individual account of one of the holders of the joint account.

13. The following are some case laws : ( a ) In XXXX v. XXXX XXXX XXXX XXXX., the following observation has been made : Prima facie a separate debt can not be set off against joint debt either at law, in equity or under the mutual credit clauses of the Bankruptcy Act. There is no authority for the bankers having a general lien in such a case as the present. '' ( b ) In XXXX XXXX XXXX XXXX XXXX XXXX v. XXXX XXXX, the bank had issued a fixed deposit receipt in favour of A and his wife B payable to either or survivor. When a suit was filed by B against the bank for the recovery of the deposit, the bank refused to give the money and asserted the lien on the money on the ground that A was severally indebted to the bank. This defense failed and the Court held that the bank could not appropriate the amount of the fixed deposit against the debt severally due from A either in law or in equity.

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