Consumer complaint received 2026-03-22 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: VA

Complaint narrative:
XXXX XXXX : Bank of America , N.A . Product : Business Loan ( PPP ) Loan Identification : Lender Loan No. XXXX/ XXXX XXXX XXXX. XXXX Issue : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Bank of America prevented my completed XXXX forgiveness application from being submitted to the XXXX and then converted the loan into a debt based on its own internal determination. This conduct blocked the required federal forgiveness process and resulted in improper debt enforcement. DETAILED TIMELINE OF EVENTS XXXX XXXX XXXX received a XXXX loan through Bank of America. I submitted a complete XXXX forgiveness application using XXXX XXXX XXXX, including all required supporting documentation. On XX/XX/year>, Bank of America, through Vice President XXXX XXXX, confirmed that my forgiveness application was completed. On XX/XX/year>, Bank of America stated that the application was withdrawn due to an internally determined overfunded status. On XX/XX/year>, I was informed that I would not be able to proceed with submission of the application to the XXXX due to this designation. Bank personnel, including XXXX XXXX, were involved in communications and servicing of this loan and forgiveness process. These actions and statements are documented in written communications. BORROWER COMPLIANCE AND LENDER DUTY The borrower has complied with all requirements of the XXXX program, including submission of XXXX XXXX XXXX and supporting documentation. Under XXXX rules, the borrowers obligation is satisfied upon submission to the lender, and the lender is required to transmit the application to the XXXX for determination. XXXX XXXX XXXX Instructions ( rev. XXXX XXXX, 2021 ) state that the borrower must submit the application to the lender for processing and XXXX review. The failure to complete this process is not attributable to the borrower and can not be used to create or enforce a debt. The XXXX loan at issue, identified as XXXX XXXX XXXX. XXXX and XXXX XXXX XXXX. XXXX, is a single loan obligation. The borrower submitted a completed forgiveness application under this loan, but the lender failed to transmit the application to the XXXX, preventing the required determination and resulting in improper debt enforcement. Under the XXXX framework, lenders are required to process and transmit completed forgiveness applications to the XXXX for determination. By withdrawing and failing to transmit a completed application, Bank of America prevented the required XXXX review and disrupted the mandated administrative process. WHAT THE BANK DID XXXX Bank of America : Withdrew a completed and compliant forgiveness application Prevented submission of the application to the XXXX Substituted its own internal determination for the required XXXX determination Converted a lender-created calculation issue into a borrower repayment obligation As an SBA-approved PPP XXXX, Bank of America was XXXX XXXX XXXX and transmit the application to the XXXX. It had no authority to block that process or replace the SBAs role. RESULTING HARM As a direct result of Bank of Americas actions : My forgiveness application was never reviewed or decided by the XXXX The loan was improperly classified and treated as a debt I have been subjected to collection activity and/or Treasury offset I continue to make payments on a loan that has never received a lawful forgiveness determination REQUEST FOR RESOLUTION I request that Bank of America XXXX XXXX. Provide a written explanation of the authority used to withdraw a completed XXXX forgiveness application XXXX. Confirm whether the original forgiveness application was ever transmitted to the XXXX XXXX. Correct the servicing record to reflect the actual processing history XXXX. Coordinate with the XXXX to ensure proper submission and determination of forgiveness XXXX. Remove any improper debt classification resulting from lender actions CONCLUSION I complied with XXXX program requirements and completed the forgiveness process as required. Bank of Americas actions interrupted that process, prevented XXXX review, and resulted in the creation of an invalid debt. XXXX XXXX XXXX XXXX XXXX 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