Consumer complaint received 2025-06-10 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NC

Complaint narrative:
# # # I. Complainant Information - * * Your Full Name * * : XXXX XXXX, XXXX XXXX, XXXX XXXX - * * Business Name * * : XXXXXXXX XXXX XXXX XXXX - * * Your Role * * : XXXX XXXXAuthorized Representative - * * Address * * : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX - * * Phone * * XXXX - * * Email * * : XXXX - * * Relationship to Complaint * * : Direct financial harm to business operations, EXCESSIVE amounts of time, ( over 150 hours ) spent/wasted trying to resolve this on hold, on the phone, at the bank, etc. to no end. 

# # # II. Company Complained About - * * Company Name * * : Bank of America - * * Company Address * * : XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX  XXXX - * * Account Holder Involved * * : XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX. Complaint Details * * Product/Service Issue * * : Checking Account Deposit & Funds Withholding * * Date of Incident * * : Early XXXX  on or about XX/XX/2024 ( date check issued ) and ongoing for 7 plus months, still no resolution * * Amount in Dispute * * : {$1400.00} ( check amount ) Plus damages, business disruption, loss of customer etc. 

* * Description of Problem * * : > " XXXX XXXX XXXX XXXX received a valid check for services rendered from a neighborhood HOA. To access funds promptly, we endorsed the check over to a part-time employee with a Bank of America account for deposit. Despite prior successful check-cashing arrangements, Bank of America froze the employees account upon deposit, closed the account, and seized the $ XXXX without justification. The bank falsely claimed the check was 'stolen, ' though the HOA confirmed its legitimacy. Bank of America has : XXXX - Refused to release funds to XXXX XXXX XXXX XXXX ( rightful payee ) Also refused to properly investigate the validity of the check, even after given documentation and information such as the HOA presidents cell phone number and name to contact to verify. ( This person 's name and cell number is also publicly accessible on XXXX if validity of info given was questioned ) > - Failed to return funds to the HOA ( check issuer ) > - Provided no timeframe for resolution, in fact stated many times they " had no time frame limit they had to return the checkin ''. 
XXXX - Caused significant business disruption and financial harm for over 18 months. '' Plus hours and hours wasted on the phone trying to resolve. 

* * Attempts to Resolve * * : > " Contacted Bank of America repeatedly. I mean daily for weeks. Confirmed with HOA that the check was valid and non-stolen. No restitution offered. '' * * Damages Sought * * : 1. Immediate release of the original $ XXXX to XXXX XXXX XXXX XXXX. 
2. Compensation for business losses due to withheld funds, late payments, lost HOA account and customers in neighborhood directly caused by suspicion of our continued insistince that we did not receive the funds and that they were supposed to be returned to the issue, however, upon XXXX 's consistent checking, never was. 
3. Reimbursement for time spent resolving this issue. 
4. Correction of fraudulent " stolen check '' designation. 

# # # IV. Supporting Documents - Copy of the endorsed HOA check - HOA statement confirming check validity - Bank of America correspondence ( e.g., account closure notice ) - Timeline of communications with bank - Business impact summary ( e.g., invoices showing cash flow disruption ) # # # V. Legal Grounds & Regulatory References - * * Unfair Practices * * : Withholding funds without cause violates the Consumer Financial Protection Act. 
- * * Duty to Investigate * * : Banks must resolve alleged check fraud within 10 days ( Regulation CC ). 
- * * Bad Faith * * : Retaining funds for 18 months exceeds reasonable limits.

Additionally, bank of America violated : - 31 CFR 210 : Protects federal benefits from garnishment - NC Gen. Stat. 53-92.3 : Requires banks to release funds after 7 days - EFTA Regulation E : Mandates error resolution within 45 days Bank of America had frozen my primary account containing my Social Security benefits ( deposited monthly via SSA ) and unlawfully seized {$1400.00} in business funds. As a retiree with no other income, this has caused : XXXX - * * Inability to pay for food, medication, or housing * * > - Violation of SSA rules prohibiting banks from freezing benefits ( XXXX XXXX XXXX, XXXX XXXX XXXX XXXX ) When they closed the account months later and finally paid the balance, the XXXX check was NOT included and there had already been irreparable harm and damages caused. 
* * Bank of America 's Policy Violations * * 1. * * Unjustified Deposit Hold & " Stolen Check '' Designation * * - Bank of America 's policy states deposit holds typically last * * 2-7 business days * * to validate checks, with exceptions for higher-risk trasactions our case * * : The 7+ month hold grossly exceeds this timeframe. The bank 's refusal to accept third-party verification from the HOA contradicts their policy, which explicitly states : > * '' We cant accept third-party verification that a check has cleared the originating bank account '' *. 
- * * Violation * * : Labeling a valid check as " stolen '' without conclusive evidence breaches their duty to conduct a timely investigation. 

2. * * Failure to Follow Funds Handling Protocols * * - When checks are disputed, banks must either : - Release funds to the rightful owner ( XXXX 's XXXX XXXX ) upon proof of endorsement, or - Return funds to the issuer ( HOA ) if invalid. 
- * * Your case * * : Bank of America did neither, unlawfully seizing funds # # # II. * * Damages Incurred * * | * * Direct Financial Loss * * | {$1400.00} withheld + late fees, overdraft penalties, lost HOA contract. | | * * Operational Disruption * * | XXXX hours spent resolving issues ; loss of customer trust. | | * * Reputational Harm * * | HOA/customer suspicion due to " stolen check '' designation. | # # # III. * * Immediate Resolution Demands * * 1. * * Financial Restitution * * : - Release original {$1400.00} + interest accrued. 
- Compensate for : - Business losses ( e.g., lost HOA account ). 
- Time spent ( 150+ hours at reasonable hourly rate ). 
2. * * Procedural Corrections * * : - Retract " stolen check '' designation in writing. 
- Provide documented explanation of freeze/closure. 
.

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