Consumer complaint received 2025-09-30 00:00:00
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Closing an account — Fees charged for closing account
Company: BMO BANK NATIONAL ASSOCIATION
State: GA

Complaint narrative:
I opened a XXXX IRA XXXX with BMO bank in XX/XX/XXXX. Upon maturity in XX/XX/XXXX, I wanted to transfer the funds to my IRA account at XXXX bank. BMO would not accept any maturity instructions prior to the maturity date. BMO would not accept the transfer form from XXXX bank by fax, email or any other method except postal mail. I voiced my concern that the form would not reach them prior to the XXXX grace period ( because instructions for CDS are not accepted by BMO prior to the maturity date ). I completed the transfer form and Sent to XXXX, who then sent to BMO. BMO never acknowledged receiving the form from XXXX. The XXXX automatically rolled over after the XXXX grace. I called and was told by BMO if I transfer the funds after CD rollover, I would have to pay XXXX interest penalty for early withdrawal. I understand early withdrawals penalties. BMOs process for CD closure at maturity is unfair to consumers who have no other accounts with BMO. I was told if I had an account at BMO to transfer the funds into the funds would be transferred upon receipt of the distribution form. I decided at that time to let the XXXX stay for an additional year rather than pay the early withdrawal penalty. I asked BMO what steps I should take to avoid this happening again at the next maturity ( XX/XX/XXXX ). BMO informed the quickest way would be to have a check issued to myself ( sent to my home address ). I called BMO about 1 month prior to the XX/XX/XXXX maturity date, they again informed me they could not accept instructions prior to maturity date and to call again on the maturity date. I asked to speak to someone in the IRA department and was told that they did not have an IRA department. ( This was not the case when I opened the XXXX in XXXX. I spoke directly with XXXX XXXX XXXX who represented herself as an employee in the IRA department. She sent signature cards to my home prior to authorizing the opening of the XXXX. I called again on XX/XX/XXXX ( I was travelling and would not return home until XXXX. BMO emailed the transfer form together with XXXX & state withholding forms on XX/XX/XXXX. The transfer form was unreadable while the XXXX others were clear. I called the next day, to inform BMO the form was unreadable. They emailed the forms again. Same issue- transfer form unreadable. BMO acknowledged that issue with the form was on their end. BMO then offered to XXXX mail the forms to my home. If I was at home, it would have been unlikely I would have received the form and beeen able to get it back to BMO by XXXX mail within the XXXX grace period. When I voiced this concern I got no solution from BMO. Because there was nothing I could do to stop the CD from rolling, I decided to enjoy my vacation and revisit the issue when I returned home. Around XX/XX/XXXX I called BMO voice my complaint regarding BMO 's XXXX XXXX procedures at maturity. Other financial institutions I bank with allow customers to download forms from the bank 's website, send completed forms back to the bank by secure message or fax ) Other institutions also accept maturity instructions before actual maturity date. BMO 's procedures are not compatible with today 's technology. BMO needs to operate in a more consumer- focused manner. Instead, consumers are being penalized because BMO 's archaic CD account closure procedures. If a customer does not have another account at BMO where the XXXX funds could be transferred to, it's not likely the funds could ever be transferred out within the XXXX grace period. BMO emailed the distribution form to me on XX/XX/XXXX, again the form was not readable. I completed the distribution from with XXXX Bank and informed When BMO that the transfer form would be coming from XXXX bank. I was informed that I would have to pay an early withdrawal penalty for withdrawing funds prior to maturity. I asked to speak with a XXXX ( XXXX XXXX XXXX ) after explaining the situation and requesting that the penalty be waived or reduced, XXXX XXXX informed me that she did not have the authority to do. She offered to file an internal complaint on my behalf. I never got any feedback from BMO regarding the internal complaint. My account balance was transferred to XXXX bank on XX/XX/XXXX. Prior to the transfer, I was charged a penalty of {$1800.00}. The interest for the period was credited after the early withdrawal penalty was debited. I called BMO to inquire about the interest credit process and if I was entitled to interest on the balance prior to the penalty being charged. I filed a complaint on XX/XX/XXXX directly with BMO 's Resolution Dept # XXXX concerning the credited interest. This process made me feel that BMO was holding my funds XXXX in XXXX unless I paid the penalty. So, I decided to let the funds remain at BMO for another year. After this 2nd attempt to transfer my funds, and the same situation occurring, It appears to me that I would have the same issue again and again, if I left the CD at BMO.

I called BMO again on XX/XX/XXXX. I asked to speak with the XXXX, XXXX XXXX. XXXX XXXX did return my call on XXXX ( which I missed ). I returned her call on XXXX and was told she would call me on XXXX. I never received another call from XXXX XXXX. 
I called BMO again on XXXX. I spoke with an account XXXX. He informed me that I would be getting a call from someone in the resolution department. I have yet to received any communication from BMO to date.

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