Consumer complaint received 2024-11-19 00:00:00
Product: Money transfer, virtual currency, or money service — Check cashing service
Issue: Fraud or scam — 
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
Since XX/XX/XXXX, my company ( the " XXXX  '' ) had been paying rent to the landlord ( the " XXXX  '' ) I also request that you investigate this matter thoroughly and take the necessary steps to recover the amount that was fraudulently taken from her account. through Bank of America ( the " Bank '' ) 's Bill Pay service. In XX/XX/XXXX, however, I was contacted by the XXXX who informed me that the rent payment for XX/XX/XXXX was never received. Upon reviewing the previous transactions, I discovered that two checks were processed in XXXX, and one of them was rejected due to insufficient funds since the funds were transferred to an unknown party. Consequently, the XXXX did not receive the XXXX rent on time, which was altered, nor the XXXX rent, which was rejected. The XXXX demanded the unpaid balance ( {$12000.00} ) along with penalties ( {$1000.00} ) for both months. 

When I checked the previous transactions, the records indicated that both checks had been made payable to the XXXX. I informed the landlord as such and provided the deposit information for verification. Upon their review, it was found that the check issued on XX/XX/XXXX, had its payee altered and was processed on XX/XX/XXXX. The name of the payee on the deposited check was altered to a completely different name, and the scan code supposed to be on the check was erased ; however, the check was processed without any verification. 

Despite the fraudulent alterations on the check, my account records still show the original intended payee, the XXXX. This discrepancy prevented me from identifying the fraud earlier, and I only became aware of it in XX/XX/XXXX. 

I formally requested an investigation and disclosure of relevant information from the Bank 's Check Fraud Department ; however, the Bank refused to comply due to their " 60 days rule. '' However, as demonstrated by the attached evidence, the bank statement did not show any irregularities, and the check appeared to have been deposited by the correct recipient, XXXX. This left her unaware of any issues until she was informed by the landlord. In response, I filed an official police report regarding this matter. As part of the police investigation, the police have expressed the need for detailed information from your records on ( 1 ) how your Bill Pay service operates ( e.g., whether the issuance of checks conducted automatically by the system, or manually processed after being reviewed by responsible personnel ) ; ( 2 ) any information related to the recipient, including any details about the delivery of the check ; as well as ( 3 ) the information regarding the bank where the deposit was made. I have sent two demand letters to the bank, requesting the disclosure of information, which were also denied. 
The bank has yet to take any action regarding this issue. This incident arose because the Bank and its Bill Pay system failed to exercise due diligence in the deposit process and neglected to verify the authenticity of the check. Furthermore, the bank did not fulfill its contractual obligation to protect its customers assets. Further, the Bank failed to meet its duties of fraud prevention and detection, overlooking clear signs of forgery while processing the altered check. 
As a result of the banks actions and omissions, I suffered huge financial damage. Therefore, I seek compensation from the bank for the monetary damages incurred.

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