Consumer complaint received 2025-08-20 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Banking errors
Company: BMO BANK NATIONAL ASSOCIATION
State: TN

Complaint narrative:
On XX/XX/XXXX, I purchased a XXXXXXXX XXXX XXXX XXXX  from XXXX ( Order # XXXX ) for {$930.00}. I used my BMO Bank debit card for the purchase. I received the wrong item and initiated a return with XXXX. My XXXX account history confirms the product was 'Picked Up ' by XXXX XXXX XX/XX/XXXX, see Exhibit XXXX. XXXX failed to issue a refund. After months of difficulty, XXXX advised me to dispute the charge with BMO Bank. BMO Bank incorrectly classified my debit card dispute as fraud, even though I repeatedly stated it was a " wrong item '' and a valid charge. My complaint falls under Regulation E of the Electronic Fund Transfer Act, which governs debit card disputes. The bank 's misclassification of this dispute has had severe and ongoing consequences : BMO Bank closed my personal accounts. The bank placed me on XXXX XXXX, a consumer reporting agency for bank accounts. BMO Bank reversed the temporary credit for the dispute and sided with XXXX, giving them my money. I was charged an overdraft fee of {$940.00}. As a XXXX individual on retirement, I am now unable to open new bank accounts at any financial institution due to the negative report BMO Bank placed on XXXX XXXX. This has caused significant hardship, preventing me from managing my finances and accessing essential banking services. I do not have the money I paid for the laptop, I do not have the item I ordered, and my personal bank accounts have been closed with a negative mark on my record that is preventing me from banking elsewhere. Detailed Timeline and Events : XX/XX/XXXX : Ordered a XXXXXXXX XXXX XXXX XXXX from XXXX for {$930.00} using my BMO Bank debit card. XX/XX/XXXX : Received the package and immediately discovered it contained the wrong item. I contacted XXXX and received a return label. XX/XX/XXXX : XXXX picked up the return from my home, see Exhibit XXXX. The status of this return in my XXXX account history is listed as " XXXX XXXX, '' which I can provide as a screenshot, see Exhibit XXXX. XX/XX/XXXX : XXXX emailed me, claiming my card issuer reported unauthorized use of my card and reversed the transaction. This was the first indication of a problem, as I had not reported fraud. XX/XX/XXXX : XXXX stated the dispute was resolved between them and BMO Bank, and they would not issue a refund. They also restored my XXXX account, which had been put on hold. XX/XX/XXXX : I spoke to XXXX, and they agreed to process a refund via check, stating it would take XXXX weeks. I promptly informed BMO Bank of this development. XXXX - XX/XX/XXXX : I contacted BMO Bank 's Reg E Processing Department multiple times to explain the situation and provide documentation, including the XXXX receipt and XXXX 's own confirmation of the return pickup. Despite this clear evidence, BMO Bank classified the dispute as fraud, closed my accounts, and sided with XXXX, giving them the {$930.00}. The bank 's actions have been directly contrary to the information and documentation I provided. XX/XX/XXXX : XXXX sent another email stating the dispute was resolved in their favor and they would not reimburse me. XX/XX/XXXX : I spoke with XXXX again, and they maintained the refund would be processed in XXXX weeks, contradicting their own emails. XXXX XXXX : I have not received a refund from either XXXX or BMO Bank. I do not have the product I paid for. My BMO Bank accounts have been closed, I have been reported to XXXX XXXX, and I've incurred an overdraft fee. My documentation, including the XXXX return receipt and XXXX 's own confirmation of the return pickup, proves I returned the item and that the dispute was about a wrong item, not fraud. BMO Bank 's misclassification of this issue and subsequent actions have created a permanent barrier for me to open a new bank account, which is causing severe hardship as a XXXX person on retirement. 
XXXX was trying to state that it is my responsibility to dispute with XXXX is not true. 


Rebuttal to BMO Bank 's Response to CFPB Case # XXXX I am writing to formally rebut BMO Bank 's response dated XX/XX/XXXX. The bank 's response is unacceptable and contains a critical factual error and a fundamental misrepresentation of my complaint. 

First, BMO 's letter attempts to capitalize on the fact that the initial transaction was " authorized. '' This is a complete misdirection. I have repeatedly stated that the transaction was indeed valid and authorized. My dispute is not about an unauthorized charge ; it is about XXXX 's failure to provide a refund for a returned item. 

Second, BMO 's argument that " returned merchandise not received by the merchant... is not covered under Regulation E '' is a narrow and misleading interpretation of the law that ignores the facts of this case. As I have stated, the correct sequence of events is as follows : The wrong product that was successfully delivered to me by XXXX was successfully returned by XXXX 's shipper of choice, XXXX XXXX XXXX or XXXX. 

The package was picked up by XXXX on XX/XX/XXXX. I have provided the XXXX pickup receipt and a screenshot from my XXXX account history that confirms the return status as " Picked Up. '' The moment XXXX, the XXXX chosen by XXXX, picked up the package, XXXX assumed all responsibility and liability for the item. The risk of the item being lost in transit is XXXX 's, not mine. The bank 's investigation should have found that XXXX is the party liable for the loss, as they control the carrier and the return process. 

By siding with XXXX and allowing them to keep my money, BMO is effectively compensating XXXX for a loss that occurred while the item was in their chosen carrier 's custody. This is an unjust and egregious error. 

As a result of BMO 's continued errors and misrepresentation of the facts, I have suffered significant and lasting harm. I am a XXXX individual on retirement and can not open a new bank account due to the negative XXXX  report placed by BMO. This is a severe and unnecessary hardship. 

I demand that BMO Bank take the following actions : Reverse their decision and provide a full refund of the {$930.00} owed to me. 

Remove the negative report from XXXX  so I can regain access to basic banking services. 

Reverse the {$940.00} overdraft fee. 

BMO 's response is unacceptable and demonstrates a lack of a fair and thorough investigation. I urge the CFPB to intervene and ensure this matter is resolved justly. I am prepared to provide any further documentation needed to prove my case.

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