Consumer complaint received 2024-07-23 00:00:00
Product: Debt collection — Credit card debt
Issue: Took or threatened to take negative or legal action — Collected or attempted to collect exempt funds
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: CA

Complaint narrative:
On XX/XX/year>, Bank of America N.A. improperly, and illegally, offset my ( customer ) Personal Checking Account ( XXXX ), for a past-due debt that was owed on a Business Account Credit Card ( XXXX ), in the amount of {$360.00}, leaving my Personal Checking Account ( XXXX ) with a {$100.00} balance. 

Federal Law and California Law explicitly state that a customer 's personal account can not be offset for a business debt that is owed to the bank. 

Additionally, Bank of America also violated the following codes of the California Code, Financial Code - FIN 1411 : ( a ) ( 2 ) ( b ) - A bank is limited in exercising any setoff for a debt claimed to be owed to the bank by a customer in that a setoff shall not result in an aggregate balance of less than XXXX XXXX dollars ( {$1000.00} ) as shown on the records of the bank for all demand deposit accounts maintained by a customer with the bank or any branch thereof. CUSTOMER : the offset resulted in a less than {$1000.00} aggregate balance in my account; ( a ) ( 2 ) ( c ) ( 1 ) - Not later than the day following the exercise of any setoff with respect to a deposit account for any debt claimed to be owed to the bank by a customer, the bank shall deliver to each customer personally or send by first-class mail postage prepaid to the address of each customer as shown on the records of the bank a written notice in at least 10-point type containing the following : ( 1 ) A statement that the bank has set off a debt or a portion thereof against the customer 's deposit account, identifying the account, and giving the respective balances before and after the setoff. CUSTOMER : no statement was provided by Bank of America showing respective balances before and after the setoff ; ( a ) ( 2 ) ( c ) ( 5 ) - Not later than the day following the exercise of any setoff with respect to a deposit account for any debt claimed to be owed to the bank by a customer, the bank shall deliver to each customer personally or send by first-class mail postage prepaid to the address of each customer as shown on the records of the bank a written notice in at least 10-point type containing the following : ( 5 ) A response form in at least 10-point type ... '' ; CUSTOMER : no response form was provided with the notice ; Bank of America also shut off the account alerts that were set up for such instances, i.e. to alert me via text and email that a debit had posted against my account ; this is misleading and unethical, at best ; The offset by Bank of America resulted in a financial hardship, and the closing of 3 credit card accounts, due to a late payment. The offset also resulted in negative credit reporting. 

Bank of America refused to provide any signed account agreement showing my allowing a business debt offset to be debited to my personal checking account.

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