Consumer complaint received 2024-04-13 00:00:00
Product: Prepaid card — Government benefit card
Issue: Unexpected or other fees — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: MD

Complaint narrative:
I am filing a formal complaint against Bank of America for its repeated attempts to circumvent an enforcement action issued on XX/XX/XXXX. Despite the stipulations outlined in the enforcement action, Bank of America has persistently obstructed the processing of redress described therein, resulting in significant financial harm to affected consumers. 

The enforcement action defines " Affected Consumers '' as individuals who, during the Relevant Period ( XX/XX/XXXX, to XX/XX/XXXX ), met specific criteria related to government unemployment insurance benefit payments. These criteria include qualifying for and receiving such benefits electronically through prepaid debit cards issued by Bank of America, filing a notice of error concerning alleged unauthorized Electronic Fund Transfers ( EFTs ), and experiencing account freezes or blocks due to Bank of America 's erroneous determinations made solely based on its Fraud Filter. 

The enforcement action explicitly states that when notified of an error, financial institutions must conduct a good-faith investigation to determine its validity, as per the requirements of the Electronic Fund Transfer Act ( EFTA ) and Regulation E. However, Bank of America 's implementation of an automated XXXX XXXX between XX/XX/XXXX, and XX/XX/XXXX, led to the automatic denial of error claims and subsequent freezing of accounts for affected consumers, without conducting the necessary investigation as mandated by law. 

Furthermore, the enforcement action imposes specific obligations on Bank of America regarding redress for affected consumers. It stipulates that within XXXX  days of the Effective Date, Bank of America must submit a comprehensive written plan for providing redress consistent with the Consent Order. This plan must include methodologies for identifying affected consumers, procedures for remediation, and a description of the individualized review process for seeking additional redress compensation. 

Despite these requirements, Bank of America has failed to communicate any intentions to provide redress to affected consumers or submit a comprehensive plan for review. This failure represents a clear violation of the terms outlined in the enforcement action and deprives affected consumers of the redress they are entitled to. 

Moreover, Bank of America 's actions have led to significant consequential harm for affected consumers. Consequential harm is defined within the enforcement action as the financial harm incurred due to the freezing or blocking of accounts after Bank of America incorrectly determined that no error occurred, based solely on the results of its XXXX XXXX. 

I can attest to the consequential harm I personally experienced as a result of Bank of America 's actions. In XXXX, my XXXX  insurance benefit prepaid debit card account was frozen, leading to late fees, interest charges, and missed payments on other accounts. Additionally, I incurred financial impacts such as foreclosure, eviction, and car repossession. 

Bank of America 's persistent violations of the corrective action ordered in the enforcement action are evident in its continued obstruction of redress and failure to conduct reasonable error resolution investigations. This is exemplified by the bank 's recent demand for additional information related to disputes filed in XX/XX/XXXX, despite these claims originating in XXXX. Such actions amount to retaliation aimed at delaying the redress process and deterring affected consumers from seeking the financial compensation they are owed. 

I have enclosed evidence of my communications with local representatives and state officials, as well as screenshots of my unemployment insurance account, demonstrating the direct financial harm inflicted by Bank of America 's actions. 

As an affected consumer, I wish to draw attention to the Bank of America 's failure to comply with a crucial stipulation outlined in the enforcement action. According to the terms, within XXXX  days of the Effective Date, the Respondent was obligated to submit a comprehensive written plan for providing redress to affected consumers, consistent with the XXXX XXXX. However, I have not received any communication from the bank regarding their intention to provide redress, nor have I been informed of any such plan being submitted to the XXXX XXXX for review. 

To substantiate my claim, I have enclosed several conversations that transpired between myself and local representatives, including XXXX XXXX XXXX, former XXXX XXXX for the XXXX District of XXXX. These email exchanges detail my efforts to seek assistance in mitigating the damage caused by Bank of America 's use of the faulty XXXX XXXX to process my claims. Furthermore, correspondence with state officials, including XXXX XXXX and XXXX XXXX XXXX, reflects the interventions required to unfreeze my unemployment benefits following the erroneous actions of Bank of America. 

Moreover, I am seeking consequential harm payments as outlined in the enforcement action. Consequential harm refers to the financial detriment incurred by affected consumers due to the freezing or blocking of their XXXX  insurance benefit prepaid debit card accounts based on the erroneous determinations of Bank of America 's XXXX XXXX. I have submitted screenshots of my XXXX XXXX insurance account, indicating an overpayment totaling {$12000.00}, directly attributable to the actions taken by Bank of America. This amount represents the financial harm inflicted upon me as a result of the bank 's failure to accurately process my claims and its subsequent freezing of my account. 

It is imperative that Bank of America rectify its mishandling of my claims and calculate the remaining claims reported in XXXX accurately. The bank 's removal of transactions under the guise of duplicate entries further compounds the injustice suffered by affected consumers. 

In light of the evidence presented, I urge regulatory authorities to hold Bank of America accountable for its non-compliance with the enforcement action and ensure that affected consumers receive the redress they are entitled to under the terms of the 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