Consumer complaint received 2025-08-26 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Confusing or missing disclosures — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
Bank of America XXXX XXXX XXXX XXXX # XXXX The correspondent BANK OF AMERICA is considered a member bank as defined in section 1 of the Act ( 12 U.S.C. 221 ) and qualifies as a depository institution under Section 19 ( b ) ( 1 ) ( A ) of the Federal Reserve Act ( 12 U.S.C. 461 ( b ) ( 1 ) ( A ) ). The Treasury and other entities are authorized by federal statute to utilize XXXX XXXX  as fiscal agents or depositories. Bank of America declined/destroyed a payment transaction related to a deposit account governed by 12 CFR 204.2 ( e ). Under these sections, an account generally refers to bank accounts that allow holders to make transfers or withdrawals using negotiable or transferable instruments. The refusal to honor payment by BANK OF AMERICA concerns a transfer involving direct obligations of, or obligations fully guaranteed by, the United States Government or its agencies, which the depository institution is required to repurchase. BANK OF AMERICA is required to comply with all provisions in Circular XXXX and other relevant XXXX XXXX  operating circulars governing Securities Accounts, facilitating Transfers, and handling payments of principal and interest on XXXX XXXX XXXX XXXX by any XXXX XXXX XXXX Pursuant to 12 CFR 204.2 ( e ), Correspondent BANK OF AMERICA in its capacity as a correspondent depository institution and member bank as defined under Section XXXX of the Federal Reserve Act ( 12 U.S.C. 221 ), ), hereby acknowledges receipt of a negotiable or transferable instrument, outstanding payment to Transaction account # ending in XXXX on XX/XX/year> BANK OF AMERICA received negotiable or transferable instrument with payment order ( XXXX XXXX # XXXX ). According to 12 CFR 204.2 ( i ), such funds include money or its equivalent received by a depository institution in the normal course of business, for which it is obligated to give credit to account ending in XXXX, either conditionally or unconditionally, including credited interest or instruments where the institution is primarily liable ( see attachment ), evidenced by an instrument on which BANK OF AMERICA received XX/XX/year> intended for application to transaction account ending in XXXX, as of XX/XX/year>, BANK OF AMERICA depository institution and Bank of America Corporation is primarily liable. In accordance with 12 CFR 204.2 ( i ), the referenced funds constitute money or its equivalent received by Bank of America in the ordinary course of business, for which the institution is under a legal obligation to credit the designated account, whether such credit is extended conditionally or unconditionally. This provision encompasses, without limitation, credited interest and instruments for which the depository institution retains primary liability. Supporting documentation establishes that, as of the aforementioned date, Bank of America assumed primary liability for the instrument in question. In addition, Pursuant to 12 CFR 204.2 ( ii ) Money received or held by a depository institution, or the credit given for money or its equivalent received or held by Bank of America in the usual course of business for a special or specific purpose, regardless of the legal relationships established thereby, including escrow funds, funds held as security for securities loaned by Bank of America, funds deposited as advance payment on subscriptions to United States government securities, and funds held to meet its acceptances. On XX/XX/year>, Bank of America issued a Returned Payment notice stating it could not process the payment because the item was unacceptable, so the payment was destroyed. Under UCC 3-603, if a valid payment is made in good faith but refused, the obligation is discharged for the amount tendered. Additionally, Bank of America, as the enforcing party, admitted to destroying the payment instrument, which indicate discharge by voluntary act or renunciation of rights. Bank of America returned Payment and did not process money or its equivalent payment received on XX/XX/year>. As stated in 12 CFR 204.2 ( ii ), this refers to money or its equivalent that is received or held by a depository institution in the ordinary course of business, for which credit has been given or is required to be given. On XX/XX/year>, XXXX XXXX responded to a Returned Payment notice issued by Bank of America regarding the payment mailed on XX/XX/year>, and received on XX/XX/year>. On XX/XX/year>, XXXX XXXX replied ( USPS XXXX # XXXX ) with a Notice of Dishonor of Payment and asserted a claim for breach of presentment warranty under XXXX and transfer warranties, XXXX, stating that this matter is considered discharged. The failure to credit ending in XXXX is defined by 12 CFR 229.2 ( a ) ( 1 ) ( ii ) and 12 CFR 204.2 ( e ). Please refer to the attached documents for further details.

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 non-monetary relief