Consumer complaint received 2024-04-04 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: AZ

Complaint narrative:
We are a small company, with an account at Bank of America. Deposits and transfers are regularly transacted via this account. This week on XX/XX/XXXX we had a very disturbing incident. We deposited a check for {$45000.00} from one of our customers, at the Bank of America branch at XXXX XXXX XXXX XXXX XXXX XXXX, in XXXX, AZ. Almost immediately within the same day, we received an email from Bank of America saying : " Hold notice : We've placed a hold on one or more checks to help verify funds. Review the availability information and hold reason for details. 

Details XX/XX/XXXX at XXXX XXXX XXXX XXXX {$45000.00} We've placed a hold on your deposit because we have information indicating the check ( s ) may be returned. '' They have placed this check on hold for 7 days! This customer is a very reputable hospital and we have no reason to believe this check will need to be returned. We went back to the branch and requested an explanation. None was provided. We also called and emailed our account contact in Bank of America ( he's an Assistant Vice President, Small Business Banker ) to provide a reason for the hold. Our account is in good standing, and I also let him know this can potentially affect our payroll. 

Yesterday, XX/XX/XXXX, he called me and let me know he and his colleagues have looked into it and can't see an real explanation, but that he'll check again. 

Today, XX/XX/XXXX, he emailed to say he's not been provided any real update for the hold. I emailed him back and let him know that : - We should know exactly what the reason is so that we know not to do it again. If I don't know the reason I might get funds held again. 
- If there's actually no reason for holding the funds, then it shouldn't be held. 
- Neither he nor any of his associates know the reason for the hold, and I haven't received any email explanation from BofA for the funds hold, so I can safely assume there's no reason. 

I'm afraid the bank is holding funds for their interest-earning purposes, and this is highly unethical. This can affect many things for a small company, including payroll, payments to suppliers and other expenses. If a bank deviates from regular practise and suddenly holds a deposit, they should at least inform the account holder of the actual reason for a hold and the actual reason for the length of the hold. I find it highly suspicious that they know exactly how long it will take them to determine the check is actually safe and sound, that is, exactly 7 days of interest earned for Bank of America. Hold checks at random here and there from various accounts, and what nice interest that would earn. It would be interesting to know if this amount of {$45000.00} was actually cashed ( ie. deducted from our customer 's account ), as of XX/XX/XXXX, and where exactly it went before it hit our account 7 days later on XX/XX/XXXX.

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