Consumer complaint received 2021-03-31
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION (CA)

In XX/XX/XXXX, I opened HELOC account with BofA and following the advice and suggestion of BofA I agreed to have the account configured for BofA " automatic payments, '' which BofA 's website describes as " ' [ w ] hen you set up automatic payments and your monthly payment is automatically deducted from your Bank of America checking or savings account. '' These automatic payments began in XX/XX/XXXX. 

Sometime toward the end of 2020, I noticed an overdue note on my account but I thought it must be a mistake because my account was on autopay. I phoned BofA to inquire and their representative advised me that the bank had some technical difficulties that had since been corrected and that I shouldnt be concerned. I was specifically assured there would be no risk to my credit report and that nothing had been reported. Then, in about XX/XX/XXXX, a non-BofA bank first alerted me that theyd received a negative credit indicator on my account due to a late or non-payment on a BofA account. 

I immediately phoned BofA and this time -- for the first time -- their representative told me there was a missing payment that needed to be brought current. Of course, she couldn't explain how it was possible for the autopay to have resulted in a missed payment ( given that my BofA account was always sufficiently funded ). Thereafter, I wrote to BofA 's designated department for credit disputes and advised them of the issue with their autopay system. They summarily dismissed my dispute claiming " [ w ] e 've completed our investigation and have confirmed : This account is being reported with the following delinquencies : 30-day for XX/XX/XXXX. '' I now have a negative credit report and it has negatively impacted my score and it's entirely due to BofA 's failed autopay system ( and it's representative 's representation that it was merely a system glitch not to be concerned with ). 

Again, none of this is fair or appropriate given that BofA 's own language states, in part : " 11. Automatic Payment. If you choose to have payments made from a designated account and have arranged with us to do so, we will automatically draft the payment. Drafts will be made on the payment due date or immediately after the payment due date ( if the payment due date is on a Saturday, Sunday or legal holiday ). If your account does not contain the payment amount due, you understand that it is your obligation without notice from us to make the full payment. Even if you make a manual payment, an automatic payment will be drafted from your designated account, unless you make such manual payment for the full payment due at least three ( 3 ) business days prior to the due date ; however, if you make less than a full manual payment at least three ( 3 ) business days prior to the due date, only the remaining amount currently due will be drafted. To stop an automatic draft, you must contact us at least three ( 3 ) business days prior to the scheduled payment draft date. We may accept late payments, partial payments or checks and money orders marked " payment in full '' ( or similar notations ) or payments accompanied by a letter stating that our acceptance of the payment indicates our agreement to the terms set forth in the letter without giving up, waiving or losing any of our rights under law or under this Agreement. '' ( BANK OF AMERICA EQUITY MAXIMIZER AGREEMENT AND DISCLOSURE STATEMENT at page 4 of 10. ) In other words, BofA was in total control of my payments and caused my account to miss a payment and then reported their own error on my credit report.