Consumer complaint received 2021-03-16
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: OR
Product: Debt collection
Sub-product: Credit card debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Seized or attempted to seize your property

Complaint:
I have had a personal checking account w/ Bank of America since XXXX. Decades later I opened a business checking account and business credit line with Bank of America. With the pandemic severely impacting my income, both the small business I was working to grow and the part-time jobs I had, I reached out to the debt counselors to discuss my poor financial situation. We went into great detail about my remaining assets and outstanding debts. He understood my tax situation and advised that I try to get my tax debts resolved as a priority and to keep my housing up. With my growing credit card debts only increasing, ( and each time I spoke to Bank of America, the same for XXXX XXXX  XXXX I was never qualified for any program or relief, he advised that I can not pay my credit cards any longer. Having never been in a situation like this ( I'm XXXX and have maintained a lifetime of perfect payment history until XXXX XXXX, I asked a lot of questions, first was what to tell my creditors. He advised that I be honest in that I've had a review by a consumer credit counselor and I can't pay my bill. I asked what the companies would do. He said the steps are : They will keep billing me and calling me to collect. 
If don't pay w/in a certain number of months, they'll increase my rate to the penalty APR. 
In approximately six months after I default, they'll write off the debt and likely sue me. 
First, they'd mail/serve me, stating that's what they're doing. 

He went on to explain that if they sue me, the most they can deduct from my account at any given time is 10 % of the available balance. His final bit of advice was to file bankruptcy so that I am protected because they could file a lawsuit in as many as seven years, but this would cost between $ XXXX {$5000.00}. 

With his advice, I set out to write each of my creditors. I explained in great detail my situation and told them that I was unable to make the monthly payments. I put my full explanation in writing because I wanted proof and the phone conversations with their debt  collectors are one-sided and there is no evidence as to what was agreed upon or said. 

On XX/XX/XXXX, I wrote another letter Bank of America ( along w/my other creditors ). In my letter, I expressed my shame and continued inability to make substantial monthly payments on my BUSINESS debit card. I told them I'd been advised to file for bankruptcy and that I owe not only them but the IRS and two other creditors. I then offered to pay 10 % of the total outstanding balance or to make {$50.00} monthly payments for 5-years. I shared that this was not within my budget but that I would find a way to make these payments. I further requested they reply in writing so that I may  absorb their response. 

This is what happened : Today, I awoke to find my PERSONAL Bank of America account being severely overdrawn. The reason it was overdrawn is due to a debit on XX/XX/XXXX that Bank of America removed from my account in the amount of {$2400.00}. 

After 1 hour and 50 minutes on the phone and speaking with : XXXX XXXX XXXX XXXX XXXX and XXXX XXXX They told me they have every right to take any amount they want from my account - regardless of the fact that it is a personal account and not my business account. They referenced the details in the agreement I signed when I opened the account but not one of the customer service representatives could read me the language that states theyre allowed to withdraw funds from any accountrelated to the business or notand not one of them had the ability to email me a copy of the agreement that states this. 

I used the analogy of our past presidents ' bankruptcies and I asked when their businesses went bankrupt, did their grocery money get removed from their personal accounts? XXXX XXXX XXXX the final representative I spoke with XXXX supported the company 's rights to take whatever measures necessary to secure their interests and again confirmed that I am unqualified for any small business relief or any reduction in interest because I can't state when my business will be fully operational or when my hours will be fully restored. I told her that Bank of America had temporarily closed the two of their branches near me back in XXXX, which remain unopened, and that they know the uncertainty of our times, so how can I predict when things will open again? She had no response. 

At the end of the conversation, I was told there was no remedy to reverse their removal of the {$2400.00}, although I begged and explained that the money was already allocated. I'm left with an overdrawn account -- which was borrowed money from my parents XXXX something Bank of America also knows24 years banking w/ themthey 've seen every single transaction XXXX to keep my housing intact. Further, with what has happened, I am scared to death that XXXX or XXXX XXXX  may do the same. I don't know what the rules are but they arent working for consumers if these tactics are legal. I need to understand my rights and not all of us can afford attorneys to help us. For goodness sake, there is a pandemic and my city is experiencing riots, vandalism, homelessness beyond comprehension and the globe is dealing with a pandemic. How can I a single person pay Bank of America or anyone without employment and the status of our country as it is? How can it be legal for a giant organization like Bank of America to usurp money from any account without distinct written warning? 

I ask that you please urge Bank of America to reverse this charge and that you stop companies from doing this to people. I thought the government was bailing out these businesses so they could help consumers. All theyve done to me is destroy my credit and increase my debts, which have increased over {$16000.00} XXXX all three creditors ) since last XXXX and Ive not charged one new item! 

Please urge them to reverse the charges of {$2400.00} and to offer me a more realistic remedy based on my actual financial hardship. 

Thank you in advance.

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