Consumer complaint received 2025-04-01 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Told you not to respond to a lawsuit they filed against you
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NY

Complaint narrative:
The draft note tendered by Plaintiff pursuant to UCC 3-311 was deposited and processed by Bank of America , acting as the depository and collateral agent under contract with the New York State Office of the State Comptroller ( NYS OSC ), Contract No. XXXX. This note was accompanied by a letter of Accord & Satisfaction explicitly referencing the disputed account and was clearly marked as a settlement instrument.

XXXX  accepted the instrument, and Bank of America processed the deposit on behalf of the state-managed accountAccount No. XXXX, linked to File XXXX. XXXX, a dedicated remittance account governed by the referenced contract. 

Business records from XXXX, as well as account transaction logs from both XXXX and Bank of America, confirm that the draft note and letter were received and processed without rebuttal. This included the internal acknowledgment of the letters contents and metadata logs recording the deposit process, establishing acceptance by conduct under UCC 3-311.

Under 31 U.S.C. 5318, Bank Secrecy Act regulations, and XXXX rules, banks are legally obligated to review, verify, and report suspicious or irregular transactions, including those purporting to settle debts on behalf of state entities. 

Bank of America processed the instrument without exercising its due diligence responsibilities under KYC ( Know Your Customer ) and AML ( Anti-Money Laundering ) statutes. The absence of a fraud flag or SAR ( Suspicious Activity Report ) filing reflects a failure to vet commercial instruments used in quasi-enforcement mechanisms, especially involving state debt collection partners. 

The banks actions facilitated an enforcement system outside judicial channels by accepting contested funds into a government-labeled account absent evidence of legal debt, assignment, or adjudication. In doing so, Bank of America acted as a private clearing agent in a process lacking regulatory transparency and legal authorization. 

These operations constitute knowing participation in a structure that denies due process rights and facilitates improper deprivation of property under XXXX of law. Plaintiff reserves the right to file complaints with XXXX, CFPB, and the XXXX Treasury Department concerning these transactions and systemic violations. 

The draft note tendered by Plaintiff pursuant to UCC 3-311 was deposited and processed by Bank of America , acting as the depository and collateral agent under contract with the New York State Office of the State Comptroller ( NYS OSC ), Contract No. XXXX. 

Bank of America is contractually linked to File No. XXXX and Account No. XXXX, designated to support the XXXX XXXX XXXX XXXX and Disbursement Unit. The bank processed a draft explicitly labeled as settlement under UCC 3-311 without conducting Know Your Customer ( KYC ) review or reporting under Anti-Money Laundering ( AML ) protocols.

Under 31 U.S.C. 5318, Bank Secrecy Act regulations, and XXXX rules, banks have an affirmative duty to verify the origin, nature, and terms of all instruments depositedespecially where they purport to settle a government-related debt. 

By failing to inquire into the legitimacy or challenge the terms of the deposit, Bank of America became a material actor in a commercial enforcement structure that lacks judicial authorization, chain of title, or accounting transparency, in violation of : Federal KYC/AML statutes , 12 C.F.R. 208.62 ( Suspicious Activity Reports ), Treasury Department guidance for compliance programs.

The banks facilitation of ACH remittances from unverified debt collection entities ( including XXXX ) into state-labeled accounts amounts to a private commercial clearing system masquerading as judicial enforcement. The lack of Federal oversight and the absence of assignment documentation show the banks participation in a system that materially aids due process deprivations. 

Plaintiff reserves all rights to file a separate complaint under the Bank Secrecy Act and file a formal regulatory complaint with XXXX and the XXXX Treasury Department regarding these activities.

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