Consumer complaint received 2025-07-11 00:00:00
Product: Credit reporting or other personal consumer reports — Other personal consumer report
Issue: Problem with a company's investigation into an existing issue — Their investigation did not fix an error on your report
Company: BMO BANK NATIONAL ASSOCIATION
State: IL

Complaint narrative:
This filing supplements and rebuts the response submitted by BMO Harris Bank to my prior CFPB complaint. Their response introduces significant contradictions, fails to justify adverse actions, and raises serious concerns of legal noncompliance. I respectfully request regulatory review and relief based on the facts and applicable law described below. 

XXXXI. Timeline and Key Facts XX/XX/XXXXXXXX  ( Thursday ) : I deposited a check for {$7400.00} into my XXXX XXXX checking account ending in XXXX at a BMO Harris branch. 

Same Day : The bank immediately restricted the account, allegedly due to " suspicious activity. '' XX/XX/XXXXXXXX  ( Friday ) : First business day after the deposit ; check is assumed to be processed for clearing. 

XX/XX/XXXX ( Weekend ) : Non-business days. 

XX/XX/XXXX ( Monday ) : BMO claims the check was returned unpaid and classified as Altered/Fictitious. A chargeback was processed and funds debited. 

XX/XX/XXXX ( Tuesday ) : My account became overdrawndespite having been frozen since XX/XX/XXXX, with no consumer-initiated transactions. 

XX/XX/XXXX : The account was charged off and reported to XXXX  for Suspected Fraud Activity. 

III. Material Inconsistencies and Procedural Errors Contradictory Account Status and Overdraft BMO asserts the account was frozen on XX/XX/XXXX, yet also states the account became overdrawn on XX/XX/XXXX. If the account was indeed frozen, it could not have processed a transaction leading to overdraft. BMO has failed to provide any transaction log, explanation, or documentation reconciling these two positions, making their narrative internally contradictory and procedurally implausible. 

Lack of Documentation and Unsupported Check Classification The only documentation BMO has provided is a return notice with the language Altered/Fictitious, devoid of any return reason code, XXXXXXXX XXXX  identifier, or supporting documentation. Under Regulation CC ( 12 C.F.R. 229.33 ( d ) ), institutions must provide detailed, timely notice of returned checks. BMO 's failure to meet this requirement violates federal disclosure obligations.

Timeline Impossibility : XXXX XXXX  Classification Under XXXX C.F.R. XXXX ( a ), only the XXXX XXXX may classify a check as altered/fictitious. Given the check was deposited on Thursday and the following two days were a weekend, BMOs assertion that the check was returned for fraud by Monday is procedurally improbable. The expedited return timeline lacks credibility and strongly suggests the return classification was not authorized or originated by the XXXX XXXX 

Teller Conduct Reflects Institutional Failures BMO asserts that the teller identified the check as suspicious but nonetheless processed it. This reflects a serious breakdown in fraud prevention controls or a retroactive justification for reversing the deposit. If the teller genuinely suspected fraud, proper policy would have prohibited acceptance of the check. 

IV. Legal Violations Expedited Funds Availability Act ( EFAA ) ; Regulation CC ( 12 U.S.C. 4001 ; 12 C.F.R. 229 ) : Failure to issue legally required check return notifications.

Improper classification of returned check without XXXX  authorization. 

Truth in Savings Act ( TISA ) ; Regulation DD ( 12 U.S.C. 4301 ) : Vague and incomplete communication regarding debits and fees.

Fair Credit Reporting Act ( FCRA ; 15 U.S.C. 1681s-2 ) : Reporting suspected fraud to XXXX  without evidence or notice. 

Failure to investigate disputed reporting. 

Consumer Financial Protection Act ( CFPA ; 12 U.S.C. 5531 ) : Conduct likely constitutes Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ).

V. Confirmed Evidence from XXXX  Report My XXXX  report lists : Reason : Suspected Fraud Activity Charge-Off : {$12.00} Status : Unpaid Date of Closure : XX/XX/XXXXXXXX  On XX/XX/XXXX, BMOs Recovery Department : Could not confirm whether a balance exists ; Indicated the account is flagged as " fraud '' with no evidence of actual fraud; Confirmed no repayment plan or outstanding collection was documented. 

This proves the XXXX  report is both factually inaccurate and procedurally unsupported. 

VI. Harm Suffered Inaccessibility of legitimate funds and delayed deposits. 

Late rent payment due to withheld funds. 

Denial of banking access based on inaccurate fraud designation. 

No procedural opportunity to contest the classification.

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