Consumer complaint received 2025-07-02 00:00:00
Product: Prepaid card — Government benefit card
Issue: Problem with a purchase or transfer — Card company isn't resolving a dispute about a purchase or transfer
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
URGENT FORMAL COMPLAINT : Gross Negligence, Repeated Fraud, and Unjust Denial of Claims by Bank of America EDD XXXX XXXX XXXX Account XXXX in XXXX Total Stolen : Nearly {$40000.00} Dear Consumer Financial Protection Bureau, I am writing to file an urgent and comprehensive formal complaint against Bank of America XXXX Prepaid Card Services regarding a catastrophic series of events that has resulted in the theft of nearly {$40000.00} of my California unemployment benefits. This ordeal, spanning over five years, is a clear demonstration of gross negligence, egregious corporate misconduct, and a complete disregard for consumer protection that has led to profound personal suffering, including homelessness, eviction, and severe emotional and financial devastation. 
XXXX. Account Establishment and Initial Unresolved Access Issues On XXXX, an unemployment insurance prepaid debit card account was opened on my behalf by the California XXXX XXXX Bank of America to receive my bi-weekly benefits during the pandemic. I was informed a debit card would be sent for access to these funds. 
From the very beginning, I never received a physical debit card. This exact scenarionot receiving a card, reporting it lost or stolen to Bank of America, and a new one being re-issuedrepeatedly occurred more than 5, but less than 10 times. Each time, Bank of America representatives reassured me my funds were " 100 % secured and safe '' and advised me to simply " keep an eye out '' for the new card. My efforts to protect my mail, including reporting ongoing mail theft to local authorities ( Police Report # XXXX ), were tragically unsuccessful. Despite these repeated warnings and my proactive measures, Bank of America failed to implement any effective security protocols or provide alternative methods for me to access my legitimate funds. 
XXXX. XXXX XXXX XXXX and First Theft of Funds My inability to access funds had devastating consequences. Approximately XXXX months into the lockdown, my fianc, who was financially supporting us, tragically passed away at only XXXX XXXX XXXX on [ approximate date of fianc 's passing ], just one week before our planned wedding. This left me in an unfathomable state of grief and without financial support, while Bank of America continued to withhold my funds with " the same old story. '' The situation culminated in my eviction from my home on XX/XX/XXXX, at XXXX a.m. This was a direct result of Bank of America holding my money " UNSAFELY HELD XXXX, '' denying me access to the funds I needed to pay rent. This eviction led to the loss of all my belongings, left an eviction on my record ( severely impacting future housing ), and forced me into homelessness, literally sleeping outside in a park. I was entirely dependent on food stamps to avoid physical starvation. 
During this period of extreme vulnerability, I contacted Bank of America again. It was then, to my profound shock, that I was informed my account had been " completely 100 % emptied to {$0.00} '' by an unauthorized individual. This criminal had illegally accessed one of the physical cards repeatedly stolen from my mailbox and, through research I've gathered, acquired my private identifying credentials to activate it. The emotional distress upon hearing this news was overwhelming, triggering a full-blown XXXX XXXX, immense grief, despair, and a feeling of complete betrayal and fury. Despite my suspicions of fraud, I immediately reported the unauthorized transactions and opened a claim for approximately {$26000.00}. This initial claim was denied without any explanation in the very early days of my homelessness, leaving me utterly destitute. 
3. Undisclosed Claim Reversal and Second Theft of Funds Approximately nine months after relocating to XXXX, California ( where I managed to secure temporary housing with a family friend due to my eviction record ), I received a confusing email from Bank of America about " recent activity '' on my account. As I believed the account was closed after the initial denial, I was alarmed and contacted them. 
To my astonishment, I learned that Bank of America had unilaterally reversed the denial of my initial claim and approved it with no communication or notification whatsoever to me. Crucially, despite the account 's documented history of being compromised by mail theft and fraud, Bank of America failed to implement any necessary security precautions. They did not close the compromised account, did not reopen a new account with a new number, and did not consider alternative secure options like sending a check. 
Predictably, and horrifyingly, immediately after these funds were approved and deposited into the previously compromised account, they were " totally liquidated and spent all the way down to the last penny. '' The only email notification I ever received from Bank of America throughout our entire relationship was after this second theft, informing me the account was empty. 
XXXX. Continuous Denials, Bogus Explanations, and Obvious Stonewalling ( Claim No. XXXX ) Upon discovering this second theft of approximately {$22000.00}, I initiated a new claim ( Claim No. XXXX ) on XX/XX/XXXX. During this process, for the very first time, I actually received a physical debit card, albeit for an account with no funds. 
This claim has been denied and required reconsideration over XXXX times. Each denial letter is an identical, seemingly automated response stating, " during our research, we identified multiple factors that indicate that the transaction was authorized by you or made by someone who has permission to use your card or account. '' I have been more than vigilant, providing extensive documentation, including : * Original police report from mail theft. 
* A more current police report. 
* Documentation proving I am a victim of identity theft via an Equifax data breach ( dating back to XXXX ), demonstrating my PII was compromised. 
* A federal IRS identity theft affidavit form. 
* My written reconsideration requests as mandated by Bank of America after XX/XX/XXXX, which stipulated new documentation for each appeal. 
Despite repeatedly requesting the specific documentation Bank of America relied upon for their denials, as they are obligated to provide, I have never received any such supporting documents from them. This lack of transparency, coupled with identical denial letters, strongly suggests an automated, AI-generated system that disregards evidence. Supervisors and representatives themselves admit they have never " seen with their own two eyes '' or spoken to a human from this " reconsideration team, '' further solidifying my suspicion of a non-existent or automated department designed to deny legitimate claims. 
5. Bank of America 's Own Evidence Contradicts Their Denials On XX/XX/XXXX, in response to a complaint I filed on this website, XXXX XXXX XXXX Bank of America ) provided a denial that at least offered specifics. She claimed denials were based on me being " in the same place that the transactions were made. Based on account address. '' I directly countered this with irrefutable legal documentation : * Legal eviction documents signed by the sheriff ( XX/XX/XXXX ), proving I was no longer living at the address where they claimed I had on file or where cards were continuously sent and stolen. 
* A one-year lease agreement ( XX/XX/XXXX- XX/XX/XXXX ), proving I was living in an entirely different city and county, far from where any of the disputed transactions occurred. 
Despite this overwhelming evidence, on XX/XX/XXXX, Bank of America issued another denial letter stating, " your written request didn't include new information or documents supporting your claim. As a result, your claim will continue to remain denied... we identified multiple factors that indicate that the transaction was authorized by you or made by someone who has permission to use your card or account. '' This is a blatant and insulting disregard for concrete legal proof. 
Adding insult to injury, I was evicted a second time from my residence due to non-payment, again directly because Bank of America refused me access to my rightful funds. This second eviction compounded my homelessness, forcing me to live in a tent on a river bottom, further hindering my ability to pursue this case. 
XXXX. Bank of America 's Own Admission of Fault Most critically, after moving to XXXX, California, I received a letter from Bank of America XXXX XXXX Department providing me a check for over {$8100.00}. This check was " owed to me for the financial harm that I have endured from not having access to my account nor the funds in this account during the impact dated period of XX/XX/XXXX, through XX/XX/XXXX. '' This is Bank of America 's own unequivocal admission that I had no access to my account or funds during the very period when the two major thefts occurred, directly contradicting their repeated denials that transactions were " authorized by me or someone with my permission. '' I immediately sent this as " new documentation '' to their claims department, expecting it to finally approve my claim. It was immediately denied again with the same generic " no new information '' excuse. 
7. Demand for Action I have exhausted all internal avenues with Bank of America. They have consistently stonewalled me, lied, ignored irrefutable evidence, and shown a complete lack of accountability for their role in the theft of my funds and the subsequent devastating impact on my life. My " 5-year investigation '' into these matters, documented with overwhelming proof that I have provided to Bank of America , makes it unequivocally clear that this institution has no regard for its consumers and actively covers up its failures. 
I demand the Consumer Financial Protection Bureau intervene and compel Bank of America to : * Immediately reimburse me the full amount of all stolen unemployment benefits, totaling nearly {$40000.00}. 
* Provide full compensation for the immense emotional distress, two evictions, homelessness, loss of all belongings, and continued financial and personal devastation directly caused by their gross negligence and predatory practices.

* Conduct a thorough, independent investigation into the Bank of America EDD Prepaid Card Services, specifically addressing their claims process, security failures, and the alleged automated denial system.

* Hold all responsible parties within Bank of America accountable for their actions and inactions.

I have provided Bank of America with every piece of documentation I have acquired. I implore the CFPB to review this egregious case and ensure that justice is served. 
Sincerely, 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