Bank of America closed all my accounts. What to do now? *UPDATED 03/01/08*

theman2 said: theficus said: I also think suing is probably futile in a situation like this. The deposit account agreement states that Bank of America has the right to close my account at any time and for any reason. I just think it's an overreaction given the circumstances.If they treated me and my money like that, they would not deserve my business. If you want to give them a chance, I'd suggest going to a local branch and discussing your issue with them. Often they have options not available to the phone CSRs. They might even be able to resolve your issue.
Quality of service can vary widely between phone support and local support. When I had an issue about a year ago with another bank and found their phone CSRs to be less than satisfactory, I went to a local branch and was able to get my issue resolved quickly and painlessly. Because of the level of service provided by the local branch, I kept my business there.This is why I bank with State Bank of Toledo. They are always polite, pay me 6.01% and don't mind me moving in and out $100,000 a month like the tide.

theficus said: I spoke to the California office. The representative informed me that my account was closed because of 3 recent outbound transfers:

1.) $4,000 to my Vanguard Roth IRA (my 2007 contribution).
2.) $20,000 to my Banc of America Investments brokerage account (to buy FSLXX, since the NEA rate was dropping).
3.) $2,500 to my Citibank savings account (to conviently pay down my Citibank AOR cards).

She stated that "Bank of America doesn't like customers to move so much money out of their account right after making a big deposit." I had deposited about $100,000 in AOR money at the end of August. I also had regular deposits, such as my biweekly paycheck, and started with a respectable balance (about $10,000). She told me Bank of America would send me a cashier's check within 5 to 10 business days. I tried reasoning with the lady, in a polite and calm manner, but she hung up on me in mid-sentence. I called back and began speaking with another lady, but she told me "we already told you the accounts are closed." She then called me a racial slur and hung up on me.

I don't think my transactions were unusual or warranted action this severe. It's not atypical for me, or many other customers, for that matter, to move around large sums of money, especially within the same company (deposit to brokerage account). I'm even more upset because the final lady I spoke to called me a racial slur (I won't reveal what because I don't want to reveal personal information). I have a strong feeling I'm being targeted because of my name and ethnicity. I don't think I would have had this problem if my name was "Ted Stevens" or something more vanilla sounding. What do you guys think? What is my next course of action?

EDIT: Before anyone asks, yes, I'm a US citizen (natural born) and yes, I provided Bank of America with entirely accurate personal information.Well, the story makes no sense. I doubt you were targeted because of your name. And I doubt they decided to close your accounts due to ethnicity. Your transactions that you list are neither unusual nor large. Nor were they "recent" in comparison to your deposit in August. So, something does not add up. Of course, you have no reason to lie unless you just want to defame Bank of America, so I am left wondering what really happened here.

dodgeman007 said: JennaG said: Wow. Are they closing your BofA Investments account too? It's odd that a $20k move "in-house" would trigger a red flag that severe.

The fact that slurs were involved is so completely out of line. I'd sue for that, just out of spite.

everyone here just got stupid. so you got called a name are you in second grade? wow grow the F* up. you cant sue for that.
MORON now try to to sue me too.

Dude, I didn't mean I would LITERALLY sue. I was employing hyperbole. Sue me.

In all seriousness, my personality is such that an insult like that would prompt me to be as inconvenient a customer as possible. Rather than accepting the account closings and moving to another bank, for example, I'd call, write and visit everyone I could find and complain as loudly as possible. Just to get the point across that behavior like that is unacceptable, and that a company is responsible for the way its employees treats its customers.

TiteArse said: theficus said:
I called back and spoke to a gentleman about the insult. He was very polite and professional about the entire situation. All he could do, however, was give me an address to voice my concern.

I've dealt with insults so much in my life that it's just like water off my back now. The more important issue is why my accounts were closed and how I had to find out about it, so let's stick to that topic.

I think I can guess the racial slur..

You think he's a duck?

dodgeman007 said: JennaG said: Wow. Are they closing your BofA Investments account too? It's odd that a $20k move "in-house" would trigger a red flag that severe.

The fact that slurs were involved is so completely out of line. I'd sue for that, just out of spite.

everyone here just got stupid. so you got called a name are you in second grade? wow grow the F* up. you cant sue for that.
MORON now try to to sue me too.If you read the comment JennaG was referring to, you would see that it was a racial slur. IANAL but it is possible that the OP does have a legal leg to stand on if the bank treated him differently based upon his ethnicity.

DavidScubadiver said: Did they liquidate your securities position? Did you incur a taxable gain or a loss as a result?

Can you post your pic?
It's really strange. My brokerage balance now shows my existing positions (total about $25,000) in ETFs and the exact same amount in Columbia Money Market Reserves. Normally it shows up like this when I buy something. My cash balance, however, is negative $888,888.88.

This is one of the reasons why I hesitate starting an AOR. You never know what these CC companies and banks will do as soon as you start moving large amounts of cash around. I really want to start doing it but when I hear a story like this it kinda makes you second guess.

OP, I'm wondering if you have a large 0% BT from BA credit card also?? Maybe they don't like you borrowing from them @ 0% and put that money into brokerage??

I find it very tough to believe someone called him a racial slur over the phone. Was it an actual slur or did they possible just make make a reference saying your type of name triggered something?

Meadowlands said: This is one of the reasons why I hesitate starting an AOR. You never know what these CC companies and banks will do as soon as you start moving large amounts of cash around. I really want to start doing it but when I hear a story like this it kinda makes you second guess.Pretty much you know they don't care when you move large sums of money in and out of the account. In this case, no large sums appear to have been involved. The CSR conversation that was relayed is just bizarre but doesn't suggest to me that 0% money had anything to do with their decision. But, if my number comes up and my accounts are closed, its been an extraordinarily profitable run and I'm glad I was in the race for as long as I was.

I also am left wondering what *really* prompted BOA's actions, but if it was me, I'd just demand all interest that is coming to me, and move to another bank*

First things first: cancel your direct deposit !!

* SiS has said before that AOR games, investments, and vanilla checking involving salary are best spread between banks. I think this is very, very smart advice; especially for people who look "funny" to banks, or upon inspection are not profitable customers. Like us.

EricGo07 said: I also am left wondering what *really* prompted BOA's actions, but if it was me, I'd just demand all interest that is coming to me, and move to another bank*

First things first: cancel your direct deposit !!

* SiS has said before that AOR games, investments, and vanilla checking involving salary are best spread between banks. I think this is very, very smart advice; especially for people who look "funny" to banks, or upon inspection are not profitable customers. Like us.
1.) I was told my accounts were closed for moving large amounts of money out of Bank of America, even though most of it was within Bank of America.
2.) Yes, I've already cancelled my direct deposit. Luckily I have another bank I can use immediately.
3.) The AOR checks had been deposited for more than 60 days (after the NEA promo rate ended) before I started moving any money around.

The entire situation is almost surreal. I'm still having a hard time believing this happened to me. I've been a long-time customer of Bank of America and I've never had any problems -- overdraft, bounced checks, late payments, or otherwise. It seems to me like a completely knee-jerk and unwarranted reaction by Bank of America. I feel like I'm in shock right now.

DavidScubadiver said: Meadowlands said: This is one of the reasons why I hesitate starting an AOR. You never know what these CC companies and banks will do as soon as you start moving large amounts of cash around. I really want to start doing it but when I hear a story like this it kinda makes you second guess.Pretty much you know they don't care when you move large sums of money in and out of the account. In this case, no large sums appear to have been involved. The CSR conversation that was relayed is just bizarre but doesn't suggest to me that 0% money had anything to do with their decision. But, if my number comes up and my accounts are closed, its been an extraordinarily profitable run and I'm glad I was in the race for as long as I was.

The thing is if they look at my spending history, the most I really moved out was about $5k to buy a CD. If I do an AOR and start moving around $10k+ around and doing BT's, putting into savings, taking out etc it will look like someone got my info. From reading the OP's post, it kinda throws a stick into the spokes...

If a racial slur was used, BOA does need to be taken to task. IMO; I don't see the benefit of going to court, what are you going to sue for? Is it enough to be worth the trouble? I very much doubt it.

I agree with going to the media about this. The OP may not be new comer but some of the ethnic newspaper would be more inclined to take up the story.

Heck, I would call back and ask for the same SOB CSR and record the call.

If the accounts were initially closed because of an error, that would be one thing. But now you've talked to them multiple times and it's clear they just don't want your business. I would not spend one more minute of time into trying to get back with them.

Clean up the mess as best you can, get established at another bank, and you know in the future to spread accounts out at multiple banks to protect you against this kind of heavy-handed treatment. I have accounts at three banks and my main bank calls me about 4x/year to see if I'm a happy customer and to ask what they can do in order to get all my business. I know full well the only reason they care is because they don't yet have all our money.

kranky said: If the accounts were initially closed because of an error, that would be one thing. But now you've talked to them multiple times and it's clear they just don't want your business. I would not spend one more minute of time into trying to get back with them.

Clean up the mess as best you can, get established at another bank, and you know in the future to spread accounts out at multiple banks to protect you against this kind of heavy-handed treatment. I have accounts at three banks and my main bank calls me about 4x/year to see if I'm a happy customer and to ask what they can do in order to get all my business. I know full well the only reason they care is because they don't yet have all our money.Maybe he'll be blacklisted and be unable to open up a new checking account elsewhere. That'd be ashame. Let us know how it works out OP.

captainwho said: DavidScubadiver said: This is why I bank with State Bank of Toledo. They are always polite, pay me 6.01% and don't mind me moving in and out $100,000 a month like the tide.Wow, is there anything State Bank of Toledo can't do!
Let you serve alcohol in the meeting room.

What to do now? Timely documentation
1) Per the EFT Act 15 U.S.C. 1693f, write a half-page letter with

• name and address
  
• account number(s)
  
• simple description of error: debits for $888,888
  
• simple statement of your belief there's an error: you never authorized the debits

2) Mail it certified to the regular bank correspondence address, not the bank by mail address. Try to get it postmarked today so you'd gain a day.

If you're not dealing with the Frauds department, chances are BoA will mail you everything by regular First-class mail. This is where you can rake in those civil damages under 1693m: $100<X<$1000 per action.

I'm forbidden to get into specifics, but BoA did settle my small claims (even though I should have filed in a US district court since my state doesn't have a EFT Act). I didn't get any extra damages, but I you can always have a friend serve the papers ... not for free.

theficus said: My cash balance, however, is negative $888,888.88.
If you're chinese and superstitious, you've hit the jackpot, eight 8's!

DavidScubadiver said: Just make sure you don't require consent in your state before recording that call.When you call, if you get a prompt stating that all phone calls are recorded then you can record the call yourself as well... the disclaimer works for both parties at that point because each knows the call is being recorded.