Consumer complaint received 09/27/2017 about Credit card or prepaid card (General-purpose credit card or charge card) with BANK OF AMERICA, NATIONAL ASSOCIATION (CA).
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint: My dad has a business credit card with Bank of America that was charged off due to non-payment. I am the daughter and an authorized user on the business credit card. I also have durable power of attorney over my dad. He had a XXXX, several medical issues, then a fall that consistently landed him in the hospital on numerous occasions, which is why we defaulted on the business credit card. The charges of his care rapidly increased. 

I had to place him in an assisted living facility and then due to the fall recently on XXXX XXXX, XXXX, he had to goto a board and care home. He was in the hospital for 3 weeks due to this fall and was unable to return to assisted living. 

I tried to resolve and make payment arrangements with Bank of America prior to the credit card going into a charge off status several times last year. For some reason they only have record of my last call made in XXXX, XXXX. I made several calls, several attempts to speak to someone but they listened and told me they could not help unless they spoke with my dad. I advised I have power of attorney and was trying to revolve the delinquent status of the credit card account. 

The credit card got charged off and I had a deposit which came into my dad 's personal checking account on XXXX XXXX, XXXX, which I am on as well as P.O.A, in the amount of {$3500.00}, {$2400.00} is amount that was taken by Bank of America to pay for the charged off credit card leaving me with {$200.00} in the checking account. The money that came into the account was going to be used for paying for his care at the board and care home. I owe a balance at the assisted living facility because we moved out early and I also have to pay for care at the board and care. 

Bank of America in a recent conversation on XXXX XXXX, once I finally got someone willing to speak with me, stated that due me not making any payments on the account after speaking to representatives, who didnt want to assist me or talk to me about the account or set up payment arrangements, the business credit card went into a charged off status and they used the funds in the personal checking account that came in to pay for the charged off business credit card. 

I explained that I had been trying to set up arrangements but none of the reps wanted to help me and the money that did come in was to be used for paying for his medical care. I asked if the money could be returned to the account and I was willing to set up payment arrangements in the amount of {$200.00} to {$300.00} a month which I would be paying for personally out of my own account because the business is not functioning, does not have employees and all the money that does come into my dads personal checking account pays medical expenses. I expressed strongly the need for the money to be returned. The manager, XXXX XXXX stated that she would report all that I stated to the set off department that took the funds and try to get the money back but no guarantee. On XXXX XXXX, XXXX, I called XXXX XXXX to find out a status and she stated that nothing could be done to reverse the charges and did I want to set up a payment arrangement to avoid this from happening again. I expressed to her strongly, I have to come up with money to pay for his care that the bank took without my knowledge and I can not set up anything because I do not have the funds. 

To my knowledge and research about this situation of set off, Regulation Z, section 226.12 ( d ) prohibits banks to do this. I did research and found out that the bank does list the set off in disclosure leaflets provided when you set up an account, however, it is not within the documents that are actually signed by the customer. 

Bank of America stated they left several message to take care and stated they said the account would be set off using funds from the checking account but I did not receive any messages to that nature nor did we receive anything in the mail or of course I would have tried to reach them again.

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