Consumer complaint received 2025-12-30 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am submitting this complaint against Bank of America , N.A . regarding the unlawful retention of my business funds following the closure of my business checking account. 

1. Facts Bank of America closed my business account and is currently holding a total balance of {$87000.00}, stating that the funds will be withheld for a minimum of six ( 6 ) months.

The funds consist of : Approximately {$40000.00} related to merchant processing activity {$47000.00} from a separate deposited check, unrelated to merchant transactions Bank of America has explicitly stated that even the {$47000.00} deposited check funds will be held for at least six months, despite the account being closed. 
I have not received any check, disbursement, or lawful documentation justifying this prolonged retention of funds. 

2. Why Bank of Americas Conduct Is Improper and Potentially Unlawful A. Unlawful Retention of Cleared Check Deposit Funds ( UCC Article 4 ) Under Uniform Commercial Code ( UCC ) Article 4, once a deposited check has cleared, a bank has a duty to either : Make the funds available, or Return the funds to the customer upon account closure A bank does not have authority to hold cleared check funds for months without a court order, legal seizure, or statutory requirement. 
Bank of America has provided no legal order or documentation authorizing the retention of my {$47000.00} check deposit. 

B. Improper Use of Risk or Merchant Review to Justify Holding Non-Merchant Funds Even if a bank is reviewing merchant activity, it can not lawfully withhold unrelated customer funds. Holding non-merchant funds under the justification of a merchant review constitutes an unfair and abusive practice under : 12 U.S.C. 5531 ( Consumer Financial Protection Act UDAAP ) C. Violation of FDIC Account Closure and Funds Disbursement Standards FDIC supervisory guidance requires that when an account is closed : Remaining funds must be returned promptly Funds may not be held indefinitely without lawful authority A blanket statement that funds will be held for at least six months without providing a legal basis violates these standards.

D. Failure to Provide Written Legal Justification or Adverse Action Notice Bank of America has failed to provide : A written explanation citing the specific law allowing a six-month hold Any adverse action notice Any documentation of a lawful investigation requiring retention of funds This lack of disclosure violates federal consumer protection expectations and constitutes a deceptive and abusive practice. 

3. Harm Caused As a result of Bank of Americas actions : My business is deprived of {$87000.00} in operating funds {$47000.00} of my own deposited money is being held without legal justification The account is closed, yet funds are withheld I am unable to operate my business or meet obligations 4. Requested CFPB Intervention I respectfully request that the CFPB require Bank of America to : Identify the exact federal statute or regulation authorizing the six-month hold Immediately release the {$47000.00} in non-merchant deposited funds Provide written documentation supporting any continued hold on merchant-related funds Disburse all remaining balances without further delay Correct any violations of federal banking and consumer protection laws

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