Consumer complaint received 2026-01-22 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: BMO BANK NATIONAL ASSOCIATION
State: IL

Complaint narrative:
I am writing to formally file a complaint against BMO Bank regarding the improper handling and prolonged withholding of my IRS tax refund in the amount of {$37000.00}, which has caused me significant financial hardship and distress. 

In XX/XX/XXXX, I received a legitimate IRS Treasury tax refund check in the amount of {$37000.00}. I deposited this check into my BMO bank account, which I had maintained for several years and regularly used to receive my payroll deposits. Shortly after the deposit, BMO released approximately {$5000.00} and placed a hold on the remaining balance. 

Before the remaining funds cleared, I was notified by BMO that my account was being closed due to alleged fraudulent activity. I was not provided with any specific details, explanation, or evidence to support this claim. At that time, I was informed by BMO representatives that the remaining funds would be returned to the IRS.

Over the following year, I repeatedly contacted the IRS attempting to obtain a replacement check. The IRS informed me on multiple occasions that they could not reissue the refund unless and until the original funds were returned by BMO. The IRS further advised me that they had not received the funds back from BMO, despite BMO repeatedly claiming that the funds had been sent.

In XX/XX/XXXX, after continued back-and-forth between BMO and the IRS with no resolution , I contacted BMO again on XX/XX/XXXX. At that time, I was explicitly told by BMO that they still had possession of the funds, contradicting their prior statements that the money had been returned to the IRS. 

On XX/XX/XXXX, I went in person to a BMO branch seeking immediate assistance. I was instructed to email BMOs fraud department and was told to allow 10 business days for a response. As of today, I have received no response, no update, and no resolution. 

This situation is unacceptable. BMO closed my account in XX/XX/XXXXXXXX  yet retained my funds for over a year without returning them to the IRS or releasing them to me, while providing inconsistent and misleading information throughout the process. The IRS was forced to initiate a trace and mailed me an investigation form because BMO failed to return the funds as claimed. 

The check in question was a valid IRS Treasury check, which can be verified directly with the IRS. I have fully cooperated with all requests and provided all documentation requested. Despite this, BMO has continued to withhold my money without justification. 

This prolonged withholding of my funds has caused extreme financial hardship. Additionally, I felt I was treated unfairly at the time of deposit due to the size of the check, despite my established banking history and the legitimacy of the funds. The lack of transparency and accountability throughout this process has been deeply concerning. 

I am requesting immediate resolution, including : 1. Written confirmation of the current location and status of my funds 2. Immediate release of the funds to me or documented proof of return to the IRS 3. A full written explanation for the prolonged retention of my funds after account closure If this matter is not resolved promptly, I will continue to pursue all available remedies through regulatory agencies and legal channels.

XXXX XXXX XXXX Account XXXX XXXXXXXX

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