Consumer complaint received 2020-04-03
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: VA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
We are a small XXXX XXXX XXXX, recently established and defrauded by someone we thought was a client. Someone that went by the name " XXXX XXXX '' hired us to plan a 65th wedding anniversary, including band, location, catering, etc. They sent us a deposit of {$25000.00} via a Certified Bank check and out of that deposit asked us to pay the band directly for the event. The check received looked like a Certified Funds bank check, but had no perforated line ( it was all on one paper ). This concerned us, since we have never seen this before. Since we are not bankers, we wanted to ensure it was valid, instead of cashing the check using a mobile app, we went to the bank on XX/XX/2020 to verify authenticity. The bank teller said it was not only valid but because our account was in good standing we could have processed it through the phone app ( GLAD WE DIDN'T ). It was for {$25000.00}. Two days later, the check cleared our account, so we sent the {$15000.00} to the " band '' as per our contract. The next day, the check for {$25000.00} was reversed. We immediately called the bank ( XX/XX/2020 ) telling them they need to stop payment on the {$15000.00}, we believe it was fraud. They said they can not and they can ask for the funds back but if fraud they probably won't give it back. They opened a Fraud Case for the check that day, not explaining we needed to open a separate fraud case for the online transaction. We went into the bank on XX/XX/2020 hoping they could assist, waive any fees as this put our account negative almost {$10000.00} and all they could say was " Sorry ''. Yes Sorry ... .we are a small business that looked to the bank hoping THEY KNOW WHAT THEY ARE DOING. They not only cashed the check, but made all funds available before they even cleared! How would we know their processing of the check was not complete? We called back on XX/XX/2020 asking for the status of the claim and were told we needed the online, so we opened that, FAXING all our SECURE documents as they don't provide another method to submit this particular claim. We have a copy of said fax. We later received a letter from BOA stating the one claim was being closed for a duplicate of the other that was opened on XX/XX/2020 and XX/XX/2020 received a letter stating the claim is being closed, that we owe THEM the balance of the funds transferred. I called the claims department that same day, asking for an explanation. The first person we spoke to was XXXX, XXXX was the ID. He said the claim was closed, as it was not fraud. I asked if I could authorize my wife to speak and XXXX said it won't matter, it won't change the outcome. I then asked to speak to a supervisor and XXXX had the the same response, but did place me on hold to speak with a representative. XXXX joined the call 10 minutes later, ID XXXX, stating that XXXX said it wasn't fraud since we cashed the bank check and we should have known we are responsible for that check until it clears. We said it had cleared though, to which she replied stating no, the funds may have been on the account made available since the account was in good standing but it takes days to verify a bank check. WHY DIDN'T THE BANK EXPLAIN THIS??? This is negligence on their part. We look to them to ensure our funds are protected! We asked them to verify the check was valid before cashing it, and they said YES..then cashed it, didn't tell us anything about the process for this and to wait 10-14 days before utilizing the funds. If we went to them with concern that it was valid, why didn't that information get passed to us? 

We have a freeze on the checking account, until this is cleared up. This shows as a Hold on the statements attached

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 monetary relief