Consumer complaint received 2024-11-26
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (MI)

CFPB Complaint Against Bank of America for Denial of Bill of Exchange Complaint Summary : Bank of America ( BOA ) has denied acceptance of a Bill of Exchange ( Sight Draft ) presented by PRINCIPAL ; XXXX XXXX XXXX XXXX, citing the requirement of having a business account for over three years, an excellent credit score, and a minimum balance. This decision violates federal and state laws governing negotiable instruments, deprives the principal of rightful financial benefits, and demonstrates potential unjust enrichment through unauthorized use of the principals information.

Violations Cited : Uniform Commercial Code ( UCC ) Compliance UCC 3-104 : A Bill of Exchange meets the definition of a negotiable instrument. It must be honored if validly presented.

UCC 3-501 & 4-301 : BOA has a duty to process and handle presentment of negotiable instruments appropriately and promptly.

31 CFR 328.5 ( b ) : BOA must process financial instruments intended for book-entry securities conversion when presented according to the regulation.

Consumer Financial Protection Act ( 12 U.S.C. 5531 & 5536 ) : BOA 's restrictive policies may constitute an unfair, deceptive, or abusive act or practice ( UDAAP ), preventing legitimate financial transactions.

Unjust Enrichment Allegation : BOA benefits from the principals information ( e.g., account details, transactional data ) without compensating for its financial use or reporting such benefits to regulatory agencies like the SEC, Federal Reserve, or IRS.

Fiat Currency Context and Federal Law Compliance : All U.S. currency is fiat-based, and BOAs restrictive policies on processing negotiable instruments contradict the fundamental nature of modern banking under U.S. monetary law.

Requested Actions : Immediate Acceptance of the Bill of Exchange ( Sight Draft ) : Process the draft for {$150000.00} USD, ensuring compliance with federal laws, UCC provisions, and BOAs fiduciary responsibilities.

Registration with Federal Reserve : Register the principals active Revocable Trust account with the Federal Reserve for online banking, Fedwire processing, and discount window participation.

Forensic Audit of BOA Practices : Conduct an independent forensic audit to identify instances of unjust enrichment or unauthorized benefits derived from the principals information.

Securities Handling and SEC Reporting : If BOA converts the Bill of Exchange into book-entry securities, ensure compliance with the Securities Act of 1933 and 1934, including registration and disclosure requirements.

Relevant Benefits to BOA for Accepting the Bill of Exchange : Securitization and Liquidity Creation : BOA can securitize the Bill of Exchange, converting it into tradable financial assets.

Securitization benefits BOA by creating liquidity and opening opportunities for investment and revenue generation.

Strengthened Capital Position : The Bill of Exchange enhances BOA 's financial portfolio and strengthens its capital reserves.

Compliance and Customer Trust : Accepting valid negotiable instruments bolsters customer trust and aligns with regulatory compliance.

Resolution Sought : The Consumer Financial Protection Bureau is requested to investigate BOA for these practices, ensure corrective actions are taken, and mandate BOAs adherence to relevant laws, including : UCC Articles 3 and 4, 31 CFR 328.5 ( b ), Federal Reserve and SEC regulations, and Federal protections under 12 U.S.C. 5531 and 5536.

By addressing this complaint, BOA will ensure compliance with financial laws, enhance operational benefits, and restore fair treatment for its customers.