Consumer complaint received 2025-04-24 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NJ

Complaint narrative:
In late XX/XX/XXXX, our joint checking account ( held by mother and daughter ) at Bank of America was targeted by fraud. Over the course of several days, multiple unauthorized transactions were made against this account without our knowledge or consent. These fraudulent activities included : The use of fraudulent checks drawn on our account on several occasions. 
ATM withdrawals made with an unknown debit card and PIN at a Bank of America ATM located in XXXX, New York. 
In total, approximately {$2000.00} was stolen from our account through these unauthorized transactions. We had no involvement in these fraudulent actions we did not write those checks, nor did we authorize or perform the ATM withdrawals. As soon as we discovered these suspicious transactions, we immediately notified Bank of America to report the fraud and secure the account. 
Bank of America proceeded to freeze and close the compromised account in response to the reported fraud ( as is standard procedure to prevent further losses ). We fully cooperated with the banks instructions at that time, believing that the next step would be a proper investigation of the fraud and reimbursement of our stolen funds under the banks policies and federal law. 
We promptly filed a fraud claim with Bank of America in XX/XX/XXXX, expecting the bank to investigate the unauthorized withdrawals and check fraud. However, to our shock and frustration, the bank closed our initial fraud claim without conducting a thorough investigation or providing any provisional credit for the lost funds. We received no detailed explanation for this denial the claim was simply marked as resolved or closed with no reimbursement to us, effectively leaving us to absorb the ~ {$2000.00} loss. When we inquired why the claim was denied, bank representatives implied that because the ATM withdrawals were made using a debit card and PIN, they assumed the transactions must have been authorized ( or caused by our negligence ). In other words, Bank of Americas position was essentially that if a PIN was used, there was no evidence of fraud. This stance is unacceptable and contrary to consumer protection rules the use of a stolen or compromised PIN does not absolve the bank from investigating ; customers should not be held liable for fraud just because the thief managed to obtain their PIN. Dissatisfied with the cursory dismissal of our claim, we followed up and initiated a second fraud claim/appeal in hopes of a proper review. Unfortunately, this second claim was also summarily rejected by Bank of America, again with no substantive explanation or investigation report provided to us. In summary, Bank of America closed our fraud claims without a proper investigation or justification, directly violating our rights and the banks policies. This lack of diligence allowed the fraud losses to fall on us, the victims, which is both legally and ethically wrong. 
Several months passed, and in XX/XX/XXXX the situation took an even more alarming turn. On or around XX/XX/XXXX, Bank of America withdrew approximately {$2500.00} from a separate joint checking account that the mother holds with her ex-husband. This second account is at Bank of America as well, but it is completely unrelated to the mother-daughter joint account that was frauded the only connection is that the mothers name is on both accounts. The {$2500.00} was removed without any prior notice, authorization, or XXXX discovered this large, unexpected debit only by reviewing the accounts balance ; no communication was sent by the bank to explain why it took {$2500.00} from our account. We immediately contacted Bank of America upon noticing this, as this appeared to be an unauthorized withdrawal by the bank itself.Only after persistent inquiry did we learn informally that this XXXX of funds was done by Bank of America to supposedly offset the loss from the unresolved fraud on the first account. In essence, because the bank had refused to reimburse the ~ {$2000.00} fraud from XXXX, they decided to recoup money from another account we owned. This was done unilaterally and stealthily, with no warning or consent, which is a blatant breach of trust and transparency. We never agreed to any kind of cross-account transfer or set-off for the fraud losses especially since we dispute the banks denial of our claim in the first place. Not only is this action highly questionable, but the amount taken ( {$2500.00} ) was greater than the original fraud loss ( ~ {$2000.00} ). We have yet to receive any accounting of how the bank arrived at the figure of {$2500.00}, or why they felt entitled to take those funds. To date, Bank of America has provided XXXX written documentation to justify or explain this debit. We consider this a wrongful taking of our funds and further evidence of the banks mishandling of the situation. This branch interaction demonstrated a lack of empathy and fairness in how Bank of America staff dealt with us. Rather than treating us as victims of a crime who needed help, we were treated with suspicion and as a nuisance. This is not acceptable customer service, especially given the severity of the issue ( loss of thousands of dollars and frozen banking privileges ). 
As a direct result of Bank of Americas actions, we are now facing serious repercussions in our financial lives.I am currently unable to open new bank accounts at other financial institutions. We have applied at multiple banks for a checking account, only to be denied each time. The banks informed us that there is an issue reported in our banking history or identity verification that is causing the denials. 
We strongly suspect that Bank of America has reported negative information about us to consumer reporting agencies for banking ( such as ChexSystems or Early Warning Services ), effectively flagging us as high risk or associated with fraud. Banks routinely report involuntary account closures or suspected fraud incidents to these agenciesbankrate.com. Given that our joint account was closed following the fraud, and possibly the bank internally labeled the situation as a contested fraud claim, it appears we have been blacklisted due to Bank of Americas handling of this case. 
To be clear, we have done nothing wrong, yet we are being treated by the banking system as if we are fraud risks. This is incredibly distressing. It means we can not open a simple checking account to manage our daily finances, which affects our ability to deposit paychecks, pay bills, and conduct normal financial business. In essence, Bank of Americas failure to resolve the fraud and subsequent punitive actions have damaged our reputations and access to banking services nationwide. 
We believe it is grossly unfair that the victims of fraud are now suffering further by being barred from banking. This situation has caused emotional distress and financial inconvenience. We have had to spend considerable time and effort attempting to clear our names and explain the situation to other institutions, all the while still lacking any support from Bank of America in correcting whatever they reported. 
Adding insult to injury, when we spoke with Bank of America XXXX ( including those at the local branch ), we were told that in order to fully resolve the issue and remove the account flags, we would need to pay additional money to the bank. In other words, Bank of America indicated that we must cover the remaining disputed amount out-of-pocket to settle the matter despite the bank already taking about {$4500.00} from us ( {$2000.00} XXXX the fraud itself and {$2500.00} from our other account ) .This stance is outrageous. Essentially, Bank of America is asking the victims of theft to pay the cost of the theft. 
We want to emphasize that we tried in good faith to resolve this directly with Bank of America for months before resorting to filing this CFPB complaint. Our efforts included : Numerous phone calls to Bank of Americas customer service and XXXX department, which yielded no satisfactory answers. 
Visiting our local branch to speak to management, which, as described, resulted in no help and dismissive treatment. 
Filing the initial claim and a second claim/appeal through the banks official channels, both of which were closed without proper resolution. 
Requesting documentation and a reconsideration, which the bank ignored or denied. 
At every turn, Bank of America either stonewalled us or provided incomplete and unhelpful responses. We have exhausted the avenues available within the banks customer service system. It is clear that Bank of America has no intention of correcting this issue on its own, which is why we are seeking external assistance from the CFPB. We are hopeful that intervention by regulators will prompt the bank to finally address our case seriously.

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