Consumer complaint received 2025-10-30 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NC

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am submitting this formal complaint against Bank of America , N.A . regarding the improper and unlawful offset of {$3700.00} from my business account on XX/XX/year>. 

The funds withdrawn were derived solely from my XXXX Department XXXX XXXX XXXX XXXX VA ) XXXX compensation, and therefore protected and exempt from any attachment, XXXX, garnishment, or setoff under federal law. I am a 100 % Permanent and Total XXXX Veteran, and I have attached my VA XXXX award letter confirming this status. 

Summary of Events On XX/XX/year>, Bank of America withdrew {$3700.00} from my business account without prior notice or authorization. I subsequently contacted the bank and requested written documentation explaining the basis for this offset. Despite multiple requests, the bank has failed to provide any notice, explanation, or supporting records of this action. 

Legal and Policy Basis Federal Protections for VA XXXX XXXX : Pursuant to XXXX U.S.C. XXXX ( a ), VA XXXX benefits are exempt from attachment, XXXX, or XXXX by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. These funds are therefore not subject to offset or setoff, even after deposit into a bank account. 

XXXX XXXX on XXXX Protections ( XXXX C.F.R. Part XXXX ) : The XXXX Department XXXX XXXX Treasury and CFPB regulations require that financial institutions protect federal benefit payments such as VA XXXX and prohibit their use to satisfy debts or offsets. Banks are required to identify and shield these deposits during compliance reviews. 

Bank XXXX XXXX Own Policy ( Deposit Agreement and Disclosures ) : The Banks Deposit Agreement explicitly states under Setoff and Security Interest that it will not exercise the right of setoff against any account containing federal benefit payments if prohibited by law. The banks conduct here clearly contradicts both this policy and federal law. 

Relationship and Standing I am a XXXX with XXXX client and have maintained a longstanding, positive relationship with Bank of America. As a loyal client and XXXX veteran, I expected the bank to comply with both its consumer protection obligations and its stated commitment to honoring veteran benefits. 

Harm and Requested Resolution This unauthorized offset has caused substantial hardship by depriving me of funds used for medical care, living expenses, and disability-related needs. The failure to provide written notice or justification also represents a violation of transparency and due process requirements applicable to federally regulated financial institutions. 

Accordingly, I respectfully request that the CFPB require Bank of America to : Immediately reverse the {$3700.00} offset and restore the funds to my account. 

Provide a written explanation detailing the reason for the offset and why no notice was issued prior to or after the withdrawal. 

Cease and desist from any future offsets involving federally protected VA XXXX funds. 

Implement compliance review procedures to prevent similar violations against other veterans. 

This matter directly implicates protections under XXXX U.S.C. XXXX, XXXX C.F.R. XXXX, and Bank XXXX XXXX XXXX XXXX XXXX, which collectively prohibit any XXXX or offset of VA XXXX benefits. 

Thank you for your prompt review and assistance in ensuring the return of my protected funds and the enforcement of these essential consumer protections. 

Sincerely, XXXX XXXX XXXX XXXX Platinum with Honors Client Bank of America Account XXXX 100 % Permanent and Total XXXX Veteran XXXX XXXX XXXX XXXX XXXX, NC 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