Consumer complaint received 2022-11-29
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: AZ
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/2022 we deposited a check through a teller in a Bank of America branch. The check was drawn on a Bank of America account ( also known as an On Us check ) ( Exhibits A, B, and C ). On XX/XX/2022 we noticed that the deposit no longer showed on the online banking website, but reappeared later that morning with a date different than the deposit date. This continued on a daily basis where the deposit would drop off in the evening and reappear the next day. We contacted Bank of America customer service who told us that there was an issue with their systems as they related to deposits and suggested that we talk to the branch. We went down to the branch and were told that the deposits had been lost in transit. XXXX XXXX, Relationship Banker, who was the teller that took the deposit told us they were aware of the issue, but that the funds were still available and could still be withdrawn. We also spoke to XXXX XXXX, Financial Center Manager, and she also told us that we would still be able to move the funds while the bank worked to resolve the issue. We were given a card for XXXX XXXX, XXXX, Consumer Market Leader, in case there were any issues. 

Not wanting to overdraw our accounts, we waited as long as we could to move the funds, and in the meantime Bank of America still had not resolved the issue. We were still seeing the deposit drop off online banking only to reappear later with the date rolled forward. Since the branch told us it wouldnt be an issue, we submitted an Electronic Funds Transfer ( ETF ) to move the funds in the amount of {$3100.00} from our Bank of America checking account to our XXXX XXXXXXXX Checking account on XX/XX/2022 ( Exhibit D ). On XX/XX/2022 XXXX XXXX online banking showed that the {$3100.00} had been moved from Bank of America and was now available in our XXXX XXXX checking account. 

On XX/XX/2022 we noticed a negative balance in our Bank of America checking account on the online banking website. We contacted XXXX XXXX to discuss the ongoing issue with her. XXXX told us the check was not lost ; it just hadnt been imaged yet. This was causing the deposit to drop off each night so that it was no longer showing. As a remedy to this she said she would credit our account {$3100.00} so that it would not show as overdrawn ( Exhibit E ). This transaction never occurred. 
On XX/XX/2022 we called XXXX XXXX to let her know the issue had not been resolved and our account was still showing as overdrawn. She told us she thought it had been resolved the previous evening so she never added the credit to our account. She also told us the issue with our deposit was a national issue that affected all of the deposits on XX/XX/2022. 

Later that day we noticed e-mails we had received from XXXX XXXX informing us that the {$3100.00} transferred from Bank of America was returned to them since they reversed the transfer ( Exhibit F ). Our XXXX XXXXXXXX account was now overdrawn due to this reversal ( Exhibit G and H ). We again contacted XXXX to talk to her about the reversal and see what could be done to remedy this. She offered no solutions. She said she could not wire the money back to the account and we had already learned we couldnt count on an ETF. 

On XX/XX/2022 we received several calls from Bank of America offering apologies, but no resolutions. The {$3100.00} deposit did eventually show as a permanent transaction with an XX/XX/2022 deposit date ( Exhibit I ). The funds were not actually made available until XX/XX/2022. On XX/XX/2022 we withdrew the funds through a Cashiers Check ( Certified Check ) in the amount of {$3100.00} so that this could be deposited in our XXXX XXXX account without them having the ability to again reverse the deposit. 
We continue to receive various calls from Bank of America staff in the escalations department that seem to want to collect information, but dont offer any solutions or explanations of how they are going to avoid these issues going forward. More disturbing yet is the fact that Bank of America seems completely unconcerned that this was a large-scale problem for many of their customers and that they have broken several applicable federal laws in the process. Bank of America, as a financial institution, has a fiduciary duty to act with care and skill, and they have failed at this due to their gross negligence in the handling of deposits. 

By not making funds available by the next business day for an On Us check Bank of America is in violation of Regulation CC Subpart B Section 229.10 ( c ) 1 and 4, which states The EFA Act and regulation require next-day availability for on us checks, i.e., checks deposited in a branch of the depository bank and drawn on the same or another branch of the same bank. This same requirement is also mentioned in US Code Title 12 Chapter 41 Sec 4002 ( b ) ( 1 ). not more than 1 business day shall intervene between the business day on which funds are deposited in an account at the depository institutions by a check drawn on a local originating depository institution and the business day on which the funds involved are available for withdrawal.

In addition, since we had contacted Bank of America and they had knowledge that the error was theirs they are in violation of the Electronic Funds Transfer Act, Regulation E, and have violated NACHA rules. An electronic fund transfer error is defined in Regulation E and the Electronic Funds Transfer act as being from a consumers account initiated by a person other than the consumer without authority to initiate the transfer from which the consumer receives no benefit. NACHA rules Section 2.9 Subsection 2.9.1 states that a debit reversing entry can only be done to correct an erroneous entry previously initiated to a receivers account. Since the error resulted from Bank of Americas own actions and they were aware of this error when they reversed the EFT, they are in violation of the Electronic Funds Transfer Act, Regulation E, and they broke NACHA rules. We would also point out that in addition to not making the funds available and by posting the check 10 days after it was deposited, they effectively defrauded us of the interest on those funds over this ten-day period.

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