Bank Of America: "That's Why You Don't Open New Accounts Online"
After reading about how Jesse was banned for life from Bank of America for no clear reason, other readers wrote in with similarly bizarre BoA stories. Wayne was locked out of his new account after he opened it and charged a $75 overdraft fee. Chris was sent checks linked to a duplicate account and then charged penalties when the checks bounced. Edward's new account was closed but the CSR refused to tell him why, and he was charged a $60 "research fee" for the closing. When Edward went to a BoA branch to clear things up, he says the employee there told him, "That's why you don't open up accounts online."
If you don't have time to read all three stories, skip to the bottom to see what Edward found out after sending an EECB to Bank of America.
First, Wayne's story. It's long, but it illustrates that even when Bank of America attempts to fix the problem, they can cause more harm than good.
I recently moved to a new state and opened a checking account with BoA online (my local bank in Ohio didn't exist where I moved outside Philadelphia). It was a Sunday when I filled out the application online and I had considered just waiting until the next day and walking into the bank and opening one. After talking to an online customer service rep via their chat window I was assured it was smarter to open the account online because the free checking account offer I was signing up for was ONLY available online.
I transferred my balance (around $400 I think) over from my old bank to my new BoA account. The online rep explained to me that until I received my debit card in the mail I could just walk into my local BoA and take money out of my account, which was fine with me. Wednesday rolls around and I do just that. The bank teller lets me take $200 out of my account and sends me on my way. So far so good. A couple of days later I come back to take another $100 out of my account and I am told there is a problem.
First, the new bank teller says she can't understand how they let me take any money out of my account the previous time because there is a flag on my account and it says I don't have any money in the account. In fact, it shows that I came in on the date of my previous date and withdrew money, and that they charged me a fee for having insufficient funds. At this point I am totally confused...and slightly pissed.
She explains to me that she doesn't understand what is going on either and that I need to call their customer service center because they are the only ones that can handle my problem. I am on my lunch break from work so I hop back in my car, start heading back to work (hungry), and dial up the number the teller had given me. The customer service rep that answers my call confirms that there is a flag on my account because they could not verify my new address. I explained to her that I just moved not even a week ago and since I moved into my cousin's apartment, I didn't sign a lease or anything. I told her I had to sign some paperwork to move in with the leasing office however so that they knew who was going to be living there. She asked if I had any utility bills in my name there and I said no, I don't, but I did have a new cell phone from a provider in the area where the bill was sent to my new address with my cousin.
The rep told me to take something from the leasing office acknowledging that I was living there and my cell phone bill into my local branch and they could take care of it. I said that's fine, but shouldn't my social security card and ID be enough to verify I am who I am? She says that would help but take at least a copy of my cell phone bill or a letter from my cousin and instructs me to go back the branch. I turn my car around (still on my lunch break (and still hungry) and go back to the bank that I had just left.
I walk in and talk to the same teller and explain to her what the lady said. The teller seems even more confused. She tells me that there is no way they handle anything like that and gets the manager. The male manager confirms the same thing. At this point I am pretty frustrated and just want to close my account and take my money and get something to eat so I can get back to work and on with my day (and life...without BoA). The teller and manager at this point take me to a tabel on the side and have me call their customer service line again right there from the branch.
This time I get a male customer service rep who confirms there is a flag on my account because they couldn't verify my new address. Nothing shocking there. I clue him in on what the previous customer service rep and he seems incredibly confused stating he has no idea why the other rep would have said that and said that in fact they had already closed on my account out completely. He said I would be banned from ever opening an account with Bank of America again. I ask him when I can have my money back (since Christmas was less than 10 days away) and he tells me 6-8 weeks. I hang up the phone, tell the manager what he said and they seemed just as baffled as me. I leave the branch pissed off.
Now...the best part. I had around $100 left in my account at BoA when they closed it. Around 6 weeks later I receive a check in the mail from BoA for around $20 with another letter explaining an overdraft fee of $75, apparently from when I took the original $200 out of the account. The kicker is that THEY SENT THE CHECK TO MY NEW ADDRESS THEY SAID THEY COULDN'T CONFIRM. As far as I am concerned not only did BoA waste my time and screw me over for doing nothing other than signing up for one of their accounts online (under the guidance of one of their own online reps), but they also flat out stole money from my pocket by charging me for it and for taking my own money out of the account...after telling me that I could.
I wouldn't wish a BoA account upon my worst enemy. At least when my car was broken into and robbed the thief ran off and tried to hide. When BoA stole from me they sent me a letter to brag.
Here's Chris's email about the duplicate checking account and how BoA tried to charge him penalties for not noticing he'd been given a second, fake account.
I was just reading the Bank of America article and experienced the same thing this past year. I received a set of checks in the mail that were registered to a second account under my name, that I never knew existed. The account was registered to a bank in a town that I have never actually been to. Because I did not know about the second account I proceeded to use the checks and the checks got returned because the account did not have any money in it. Once I discovered what happened I was on the phone with Bank of America reps all day working my way up the food-chain. No one would listen to me until I said that Bank of America is a scam and that they were trying to con me. Once I threatened them with those words I finally got them to reimburse any charges that I received for checks bouncing and had them cancel the account. They tried to tell me I applied for this second account, even though it was at a Bank of America in a town that I have never been to. Bank of America is a screwy company at best.
Finally, here's a copy of the EECB Edward sent to Bank of America after his account was closed without explanation and dinged $60 for an unexplained "research fee":
On May 7, 2009 I applied online for a MyAccess checking account. I chose the Debit card funding option and had $100 withdrawn from my Chase bank account to fund the Bank of America checking account. I received confirmation of submission of my application. Shortly after, I receive notification my account was approved. On May 11, 2009 my Chase checking account was debited for $100.
On May 13, 2009 I received two seperate mailings: one included information regarding my temporary password for my online account and the other contained bank disclosures. I proceeded to enroll in online banking and was notified that a call to customer service was required. I called customer service and they informed me that my account was closed — they could not provide any reason and said I would need to contact their Risk Department at 877-240-6886. I called them that night, but they were closed — apparently they close at 4PM PST.
On May 14, 2009 I called the Risk Department around 1PM. Once the representative verified my information, she began reading to me what sounded like a prepared script. She went on to state that when opening the account online, I agreed to a disclosure that stated Bank of America reserves the right to close my account for any reason and at any time. She goes on to tell me that the account is closed and that I will never be able to open an account at Bank of America. I asked them what was the reason behind my account closure. The representative then repeats that Bank of America reserves the right to close my account for any reason and at any time. I ask again, "But why was it closed?". She repeats the same statement for the third time and then states, "That is the reason why." She said they will be sending me a cashier's check for $40. I inform her that my initial deposit was for $100 and it has already been debited from my bank account. She states that there was a research charge for $60. I respond saying that it is hard for me to comprehend how Bank of America can close my account, without giving any valid reason AND charges me $60 (60% of my account balance). She tells me for the fourth time that Bank of America reserves the right to close my account at any time for any reason and then disconnects me.
Immediately after this phone call, I walk into my local Bank of America branch. I am eventually directed to a personal banker. I explain the situation. After telling my story, she comments, "That's why you don't open up accounts online." She lets me know that the online departments are seperate from the retail branches, but says she will try to find any additional information. She asks for my social security number and tries to look up my account history. She cannot find any information. She lets me know all she can see is that the account is closed. She tells me there's no use in her calling the Risk Department as they will only tell her the same thing they told me. She gives me a card to Customer Solutions. She tells me to call the number as it is my best bet at getting this issue resolved.
I call Customer Solutions at 1-800-831-4419. I explain my story. They put me on hold as they contact the Risk Department. They come back on the line and give me the exact statement the Risk Department told me. I let the representative that it is completely absurd that they cannot even give me a valid reason, let alone charge me $60. She says Bank of America will not refund the fee. I ask her if I have ANY other options to get this issue resolved. She responds, "No." At this point, I want to start recording names and record the shady nature of these business transactions. I ask her for her name and extension or any other information in which I can identify her. The line goes silent for a minute and then disconnects.
I look online to see whether this has happened to other individuals. Apparently it has.
http://www.raisedguidance.com/2008/10/banned-from-bank-of-america-fo.html
http://www.debtconsolidationcare.com/banking/bankofamerica-risk-assessment.html
http://www.complaintsboard.com/complaints/checking-account-scam-c92924.html
http://www.my3cents.com/showReview.cgi?id=41155
http://answers.yahoo.com/question/index?qid=20090312090401AAcoGUAThis has been absolutely my worst experience in dealing with a bank. It bewilders me to see how Bank of America treats its customers. I expect at the very least, a full justified explanation for my account closure along with a refund of my full $100 deposit. Assuming that Bank of America charges $20/hour for research, please let me know what exactly took three hours and what research they found because apparently I haven't heard it.
Edward notes that the EECB appeared to do the trick. He even finally got an answer as to what triggered the closure:
I was also sure to copy the comptroller of the currency who regulates these financial institutions. Long story short, someone from the "executive offices" of Bank of America gives me a call letting me know that Bank of America is sorry and that they will refund the fee they charged me. They sent me my entire balance back along with a $50 Home Depot gift card for my inconvenience. I also finally got a real answer in regards to why they closed my account — my mailing address was not the same as my legal address (note that despite this, they had no problem taking funds from my Chase bank account).
Anyways, thought you might want to share this with your readers. Obviously Bank of America has some serious procedural issues in regards to how they handle what they determine as "fraud".
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(Photo: jonathan mcintosh)
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Comments:
in our mobile society, you can have many addresses.
maybe you just moved.
maybe a sick relative or friend needs you to stay with them so you open a bank account in their home state to make your life easier.
maybe your life has gone downhill and you have to move in with your parents.
maybe like me your job requires travel and you have your mail sent to a po box so it is secure while you are away.
and maybe bofa should just stop flagging people and inform them of the address problem so it can e cleared up.
better yet with all the check boxes you have to tick include one highlighting the importance of address confirmation.
I used to be a BoA customer...I've banned THEM for life.
I'm glad he got his money back, he should take it to a Credit Union.
@Tiny L. Bug: Agreed. A few months ago I opened an account online with TD Banknorth and haven't had a single problem with it.
While I agree it's great that the EECB got results, I'd still pursue the complaint as far as possible with the Comptroller of the Currency. These fscking banks need to have their collective chains yanked, and hard.
@Tiny L. Bug: Well said. I will also speak up in favor of Charles Schwab. I opened my investor checking account with them online last October and it's been great.
"and maybe bofa should just stop flagging people and inform them of the address problem so it can e cleared up."
But that would decrease the profit bonus for the BOA VP who figured out that BOA could shaft x number of customers for $60 and only have to pay back Y% of those customers who actually managed to complain to the right sequence of BOA people...
The mega banks that helped sink our economy and could care a flip about middle America is exactly the reason I search out the small local banks. If I have a problem I don't have to provide my blood type to get help or for them to fix an error.
In the words of J. Walter Weatherman, "And that's why you don't open accounts with Bank of America."
This address thing is just bogus. I recently moved and before I had officially gotten my new address I applied for a store card to get a discount on new furniture for my new place. (I know, I know; I paid it off at the end of the month.)
When I applied, since I was giving them a new and ostensibly unverifiable address, they put me on the phone with a service agent who asked me a series of questions to verify my identity. That way, no matter where I ask them to send my bill they know it's me who applied and asked the bill to be sent. Why can't BOA do something like this online?
Note how the business media blames the Merril-Lynch acquisition for BofA's problems. They never seem to make the connection between a company's business struggles and how they treat their customers.
Jeeze, I cannot believe what these banks can get away with. It's because of stories like these that I am wary of opening an account with a big bank like Bank of America. I've only used local or regional banks, and I haven't had any problems yet (although now that I typed that I'm sure something horrible will happen to my account any minute now).
I tried to open my accounts with Citibank online several years ago. It was a mess. After much back and forth I ended up opening them in person. The Citibank employee who helped me that day said basically the same thing, "That's why you don't open accounts online."
At the time I thought, "Great, then they should stop pretending they provide that service."
Not blaming the OP, but if you are living outside philly (assuming one of the suburbs), why would you ever open up with Bank of America? They have very few branches compared to TD or PNC, which have branches on almost every corner.
I must be the weirdo, but I've NEVER had ANY problems with Bank of America. I've opened several accounts online (though admittedly they were all after I had my first account with them) without any problems, and certainly without ever having to go to the branch. Checking, savings, two credit cards, and several CDs later...I'm a big fan of BofA. :P
BoA hasn't figured out its own policies yet regarding online banking. Once I tried to change my billing address for my debit card, only to receive a letter stating that the change was declined for security concerns. My response was "why even have the ability to change the address online if you will just decline it later for 'security concerns'? Isn't that just a waste of everyone's time?" But of course, I got a generic response in an email from customer support.
Luckily, no other major problems though. Guess I'm one of the few lucky ones.
Chris says he received checks for an account he didn't know about from a bank in a town he'd never been to. But he used the checks anyway. Why would you attempt to use an account you know nothing about?
@tbonekatz:
Or did he not know the checks were from a second account when he got them? I'm not clear on that. I always verify that the account number on my new checks match my actual account number.
Small Claims Court. Take them to SMC for these silly "fees" and get them back. Especially the guy that was charged $75 overdraft when there was funds in the account.
Also, find out who regulates banking in your state and file a complaint there about this rip-off of fees. It's absurd they would cause charge you an overdraft because they are freezing you out of YOUR CASH.
One thing to note is that the Email to the CEO seems to work. While I was out of town, my daughter accidently overdrafted her account by 5 dollars for one day. BOA decided that that was a 135 dollar mistake. I called and asked that it be refunded (that is a lot of money to a college student) and they refused. The local bank manager said that, if we had come to her first, she would have reversed the charge but, because we called the customer service line first, there was nothing that she could do.
Finally, I got a list of executive email addresses here and sent out a mass email complaint. The money was refunded 2 hours later.
We closed all of our accounts there anyway.
Sorry Wayne it's called the Patriot Act. In case you were unaware back in 2001 some terrorist bombed the WTC, Pentagon and even a field in PA with our own commercial jets. Later Bush signed the Patriot Act into effect. Most of the terrorist had banking accounts here in the US so today as a result and to protect everyone they need to verify some things. one of which is an addresses. Wayne unfortunately didn't have one of those. Wayne was staying at a relatives apt. and was trying to open a banking account. Bank of America was only doing what they need to do. It's not a BOA thing, it's not even a banking thing its a matter of protecting the US and its citizens. Wayne didn't have an address, nothing could be verified so what really should have been expected. If Wayne happened to be a terrorist and BOA just opened the account anyway wouldn't things look a little worse in that case. Wayne had just opened an account and 2 business days later with withdrawing funds from it. Wayne is now complaining and I understand his frustration but BOA was only doing what they are legally bound to do. All Wayne had was a cellular bill which is not a utility bill and in my own opinion looks shadier than if you had nothing at all. You are required to provide some simple things to open an account a name, addres / tax id and an ADDRESS. Wayne did not have an address. That is a crucial element to open anything financial today and everyone should know this, no exceptions. Protecting the USA and all it's citizens is the real winner here. Sorry to hear that Wayne had to learn this first hand.
I had a similar issue with Citibank. I opened a checking account online. They sent me checks. I don't write checks that often, so I didn't write one until 6 months later. I then wrote a check for my rent, and a few days later my landlord calls me up to call me a deadbeat. I call Citibank to find out why the check bounced, considering I had a few grand in the account. They looked into it and told me that I needed to activate the check writing feature of my online checking account. What?! The entire point of having a checking account is to write checks. If I set up the checking account, why would I have to separately activate the check writing feature?!
I wonder if this is the real culprit. The consumerist should email all the people who had problems and find out if they opened the accounts online or in the store. It would be interesting to know if all the people with problems opened the accounts online.
BofA keeps bouncing me from online access to my account. And when I call to do things by phone, they remind me I could be using the internet instead of tying up their call centers. Maddening. When I try to call and get online set back up, they'll tell me I'm not an authorized user on the account. (Untrue.) So then my husband has to call. The variously assure him I'm an authorized user or that it's a joint account, and I can now call and deal with customer service and get online access reset. So I call, and they tell me I'm not an authorized user on the account. (So my husband tries to set up online access, and I get booted from access again in three weeks.)
It's like a mobius strip of craptacular runaround.
(And to preempt: we're with BofA because they keep buying our accounts. We've fled repeatedly but they bought our longest-open, highest-limit credit card and we don't want to get rid of it. They've also had data breaches on it like six times in three years, so they're constantly changing the number, which makes me crazy, since I like to have my number memorized for ease of online shopping.)
Incidentally, I worked at BofA one summer in college, and they were actually a great employer. (I was in the support services at a corporate office, not a teller or anything.) I would totally encourage people to work there. I just won't bank there.
Could this just be their lame attempt to comply with the Red Flags Rule?
One of the "flags" is customer addresses that don't match and/or changes of address combined with requests for goods or services. (I know it is still ridiculous that BofA sent checks to the new addresses).
FTC Red Flags Rule: [www.ftc.gov]
I blame it on Tony Stark its his fault for corporate america being total jackasses
@Robert Giambrone:
No, BoA might have been bound to verify addresses and refuse accounts that don't match, but blatantly grabbing money for no reason other than you were dumb enough to try to do business with them is just plain wrong, and wrapping it up in the BS that is the Patriot Act doesn't excuse it.
When I was heading out to Europe, I gave BofA heads up that I will be gone and using my card overseas. I thought "well, that's that". Guess what happened when I tried to use my card once I was in Europe? They froze my account because my purchase was done overseas. I had to spend $40 on phone calls and re-arranged my vacation plans so I can deal with these TARP-sucking bankers. Because of the time zone difference I can only call customer service at odd hours in Europe.
/end rant
@Robert Giambrone: Wow, thats a huge mouthful of crap there...
yes the patriot act requires banks to gather
1.name
2.date of birth
3.address
4.identification #
however the problem falls into how BofA precesses this. The Patriot Act leaves the verification of address process up to the bank's discretion. Forcing a customer to provide 2 proofs of residency in the form of a utility bill, leasing agreement would mean that ANY person living with family would not be allowed to have a checking account EVER! and most banks do not require this.
Also the fact that BofA closes an account without first notifying the customer and then charging them fees is outlandish. If you are going to require said documentation thats fine, but don't allow an account to be opened without it then. If that means not being able to have an online account opening system then so be it. They can't have it both ways
oh and if you think thats what BofA was legally bound to do, then maybe you should READ the Patriot Act before going all overly-patriotic on the OP.
@HungryMohican: Don't "match" what? What address are they comparing it to? The one on a credit report? Because those are frequently wrong.
I bank at a local bank and a credit union. I'll never understand why anyone would use Bank of America, they are so customer-unfriendly.
@Robert Giambrone: Wayne signed documents with the leasing office of an apartment stating he was living there. For all intents and purpose that is his address. It's no different that having a relative living with you in an apartment that doesn't pay the bills. All BoA should have needed was a copy of the paperwork from the leasing office that shows that Wayne was living at that address.
@sroemerm: same here. I banned them when they gave me a checking account number that had closed six months before I opened my account. Yeah. The previous account holder started using checks left and right for a month and after bouncing my checks their apology was just a "Sorry"
a banker at chase told me the same thing once.
After reading of the tactics used by B of A to shake down their customers, my first thought was that Bank of America was originally called Bank of Italy--maybe it's the Mob running the business! They sure know how to put the screws to you.
But of course I jest. And in hopes of avoiding a hailstorm of abuse from 50% of Americans whose surnames end in a vowel, I would just like to say that I am half Italian myself. (Well, my dad considers himself to be half Italian and half Sicilian, but we don't need to get into that here.)
@Stephanie Mabry: I've never had any real problems with them, either. I also opened my account online (though we just have checking). BofA even delivered on the free $50 for opening online that they advertised. I do watch them like a hawk, though.
That said, I highly dislike how they so obviously post transactions highest to lowest. Wells Fargo never pulled that crap on me; unfortunately, we don't have them back in MA.
BA has my checking and my home equity line... BUT when they offered a credit card and I applied they then turned me down flat.
I have a platinum Amex (as well as others) and over 15k in credit and own my own (3rd) home. They suck. I'd have switched banks if I thought any of the rest were actually better.
@Bryan Fernandez: They did that to me when I took a trip to Vegas. The CSR told me have a giant computer algorithm that tracks where you make your purchases and if one of them isnt normal BLAM they freeze your account- they don't try call you or warn you at all. It was at that moment that I decided i needed to Get The F*(< Out of there. The added awesome thing is that when I called to get it unfrozen they said they did unfreeze it, but then I tried it for two more days and then called them back and a different CSR said she sees where the previous CSR "tried to unfreeze it, but didn't actually do it." LOL so st00pid
Sometimes online vs. in person does make a difference. When I opened my account at Regions two months ago, the online app said it couldn't verify some of my personal information (most likely my address since I'd just moved). So the next day, I walked down to the local branch and had an account set up within an hour and no problems. That said, after these stories I'll never open an account with BoA...there are plenty of other banks/credit unions out there. And as far as customer friendliness, nothing beats a local credit union.
I am not a huge fan of big banks, but I have opened accounts online with Bank of America, I have closed accounts online with Bank of America, I have had incorrect or odd fees INSTANTLY credited with a sincere apology to few times it's happened in the last 6 years and never had a problem.
Why are so many people have so much trouble with Bank of America? Could it be partly how they handled it? What state they live it? I am scratching my head. Bank of America is huge, but never really give me trouble. I even just took out a mortgage with them and it went just as planned. Odd.
@jasonq: Notice that the issue is STILL NOT resolved. Is he or is he not still banned? What is the definition of "legal address"? And why is BoA not accepting accounts from people that move? Do they think moving is a crime?
Of course, people really need to think of this as BoA doing them a favor and showing them right up front what a scumbag bank they are before the people get in too deep. Losing your initial deposit might seem bad, but you could later on lose a lot more if you stay with BoA.
Just don't bank at BoA ... ever. BoA is banned!
@barb95:
Wow, your story actually has me reconsidering using B of A even though I've never had problems with them in the past. That's incredible BS.
@JGBrock:
That was your own fault (well, your daughters) and they went the extra mile for you as far as refunding your money is concerned, but you closed the account anyway? I realize that overdraft fees are crazy, but you DID overdraft didn't you, and you knew there would be a penalty for it, didn't you?
OK...
You can't get a fucking cell phone without all of the above unless it's prepaid or something, and if he's receiving a bill, then it's definitely not prepaid. How is land line phone service a utility by cell service is not? And then there's the whole "you have to sign the lease to stay in the apartment" thing that every single apartment complex in the history of ever requires.
Stop wrapping shit up in the BS protect America from terrorists excuse and you'll find out the real problem here is B of A.
I didn't get banned, but someone in SanFran had the same account number as me. Don't know hot the hell that happened.
@Newman!!!!:
They did that to me when I was moving across the country. They said my purchases were suspicious because they were happening in multiple states. Instead of just calling my cell phone (they had the number b/c it was the only number I used with them), they just shut off my card. I found out when a motel room charge was declined. Thanks, BOA.
No, that's why you don't open up accounts with Bank of America