Consumer complaint received 2024-11-04 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: TX

Complaint narrative:
I am writing to formally dispute the inaccurate reporting of late payments and an outstanding balance on my secured credit card with Bank of America. The reporting of this account is incorrect and should be updated immediately. I have received no fewer than XXXX consecutive negative marks on this secured credit card account, despite Bank of America holding {$3000.00} of my funds as collateral. 

During the COVID-19 pandemic, Bank of America refused to offer secured cardholders the same relief programs that were available to other customers. When I inquired about assistance, I was advised only to check back. Ultimately, I was forced to close the account to avoid further fees. Despite the closure, Bank of America took over a month to process it, during which time they continued to charge late fees and other penalties, increasing the balance. 

Although the balance on the closed account was below $ XXXX amount fully covered by my secured fundsthey chose to charge it off with a balance exceeding {$300.00}, accumulated solely from these fees. This charge-off has been reported negatively every month since, severely impacting my credit. 

Bank of Americas decision to exclude secured cardholders from COVID relief, compounded by their continued fees during the pandemic, has unfairly and repeatedly damaged my credit. They charged off the account on fees alone and have reported the XXXX XXXX balance monthly for over 23 months, affecting my credit as though it were a new delinquency each time. 

Bank of Americas handling of my secured credit card during the pandemic was both unjust and discriminatory. Despite holding {$3000.00} as collateral, they : Charged late fees on the account during closure. 
Added extra fees throughout the closure process. 
Continued to impose fees while offering COVID-relief programs to other customers. 
Executed a charge-off that was comprised of these accumulated fees. 
Repeatedly reported this charge-off, damaging my credit each month for a single incident. 
When I sought hardship assistance due to financial challenges, I was informed that relief was only available to regular credit cardholders. Excluding secured cardholders like myself from COVID-relief programs is both unfair and discriminatory, as we were equally affected by the economic downturn. 

The account has been closed since XX/XX/XXXX and can not be reopened, yet Bank of America continues to report a new charge-off each month as an account status update. This is misleading, as a closed account can not change status once charged off. This monthly reporting creates a misperception of multiple delinquencies, when in fact, it was a single charge-off. 

I opened this secured credit card in XXXX with the intent to reestablish my credit. I later increased the secured amount from {$500.00} to {$3000.00} and responsibly sought assistance when pandemic-related financial challenges arose. Instead of support, I was forced to close the account, burdened with additional fees, and subjected to negative reporting for over 23 months. 

The credit bureaus allowance of this misleading reporting practice has amplified the damage to my credit. Bank of Americas single charge-off incident has effectively multiplied its negative impact on my credit history through repeated monthly reports. I urge you to address this unfair reporting and update my account accurately to prevent further undue harm to my credit.

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 monetary relief