Consumer complaint received 2017-08-02
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: TN
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
I currently have two active checking accounts with Bank of America. On XX/XX/XXXX, I notice that funds ( {$470.00} is the amount ) from one account were being withdrawn and credited to my other account. I had not requested a transfer nor are the two accounts linked for overdraft protection. I called the bank 's customer care center and inquired about the credit and was told that they could not give me further information because it was in " pending '' status.
I concede that one of my accounts was overdrawn at this time. The first representative told me that I would need to contact the Claims Department of the bank the next morning to see about having the funds placed back. I was concerned about this as I was expecting my rent check to be presented to the account from which the funds were removed and that it would n't be covered. So I called back to get further details on what I deemed was a unauthorized transfer and was told that the funds were withdrawn because of the overdraft
. Side note : I applied for overdraft protection a few months back as a precaution but was denied by the bank. The second representative I spoke with gave me the direct number to the Claims Department and told me they may
be able to refund the money and put it back in my account. On the morning of XX/XX/XXXX, I contacted the Claims Department of Bank of America and spoke with a gentXXXX about the issue. He state that the overdraft was the reason the funds were transferred ( he said it was n't an actual transfer ) and the the bank " technically '' has the right to offset ... his wording indicates that it probably was n't the right thing to do. I explained to him that doing so, created a much larger problem for me in that my rent check would be presented for payment and would not be paid resulting in the check being returned and causing me overdraft fees and also possibly being evicted from my apartment along with any other fees. Also, the overdraft on my other account was because of a check from a company that I stopped doing business with and placed a stop payment against any all all transactions ( I paid the bank a {$30.00} fee for this ) was allowed to be presented, over drawing my account and then the bank took the funds from my other account that was not linked and without my authorization to cover it. To add insult to injury, the check was returned but the bank wo n't refund my money. 
The representative explained that the Collections Division removed the funds and that I would need to  speak with them. I was on my way to work and did not have the time and decided that I would go to thebranch where I opened my accounts on my lunch break. I explained the situation to the one of the  bankofficers and he contacted the Collections Division to try to resolve the issue. They stated to him that in  order for the funds to have not been transferred, I would 've had to have had a prior agreement in place for them not to do so and that they would not be refunding the money. My complaint is essentially this : Nowhere in the depository agreement I signed for the accounts does it state that they can do this. Therefore it was not disclosed and is most likely " internal policy '' and is not public knowledge and not explained when an individual opens an account as an agreement is a contract. Also, I was not notified that this was about to take place nor was I given a chance to rectify the problem before the transfer occurred.No notice, electronic or otherwise was given. Also, given that itwas handled by the bank 's " Collections Division, '' and it is a debt, would not the debt have to be charged off first and collections procedures followed per State and Federal Law? I was not even aware that it had been placed in collections and the bank did not give me a chance to enter into a payment plan to pay the debt. They simply took the money from an unrelated account to " bring the balance to XXXX '' for a charged that would 've been reversed anyway but they have placed my residence in jeopardy in doing so. As I stated earlier, I was not given a notice that this was about to take place or that it could enter into an arrangement so that it would n't. Also, this practice is not disclosed anywhere in the Depository Agreement or the bank 's website. This transfer may have resolved one issue but created the exact same scenario on my other account because of the check that is trying to clear for my rent payment. Now, my other account is overdrawn. it simply does n't make sens e to do that.

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