My name is Alida Ocon, I own a small retail business. I had been banking w/Bank of America for over 20 years. I had a business account w/Bank of America that required cash collateral, BofA became very abusive demanding higher cash collateral w/a 21 day notice. When I first opened this account I was asked for less than $10,000.00 after a short period of time I was forced to have $92,700.00 in cash collateral, if I did not agree w/their increment requirements they immediately charged my business account w/$1 million dollars, making my account overdraft, as a result of this they would immediately close all my business accounts. Causing chaos in my business financial situation. So of course I had to comply w/their cash petition. So I complained w/the OCC (Office of the Comptroller of the Currency) As a result Bank of America ;s again closed all my accounts, including all personal accounts & Bank of America credit cards. How ever this time they have said there is now way they will reopen my accounts. I am okay w/their decision, what I am not okay with is that they are holding all of my cash collateral, Bank of America refuses to give me any sort of explanation and REFUSES to release my money until 1 full year has passed from the date Bank of America closed my accounts.Is there anything I can do? Is this legal? Can they charge my business checking account w/$1 million dollars causing an overdraft in order for them to have an excuse to close the accounts?
Wow, that is some ordeal! I spent many years in commercial lending with a national bank (not BofA). I never heard of anything like this. The business account you mention, is this a business loan or line of credit? The only way that they can hold your money is as collateral on a loan or if you have agreed to keep it in a money market account or CD for a specified time frame. If it is being used as collateral for a loan or line of credit – your only option is find another lender who will take out this loan – then the bank must release your collateral. If it is in a money market or CD account and not being used as collateral – then if you take it out early, you will be subject to an early withdrawal fee.
Other than that, I cannot think of why they are holding your funds unless they think there is fraud on your account (like check kitting or money laundering).
I would suggest that you seek out your branch president and very calmly ask for an explanation. Once you receive this and you are still not satisfied, then find a local (should be one in your city or state) FDIC office and take your complaint to them. They can more power over local branches that the OCC.
Please come back here and let us know what is happening or why they are holding your funds. Again, the only reason I can see them holding funds is that they are collateral on the loan – if so, then you must pay off the loan (either with your collateral or through another lender).
CharlotteW | Former Moderator |
1/18/2011 - 8:45 am
Thanks so much for your question. I'm sorry to hear your frustration with your bank. I'm moving this thread over to the Loans, Grants, & Taxes board where I believe more expert might able to help answer your questions.
There is no loan behind this collateral, Bank of America required the cash collateral in order for me to have a business check cashing account, however my business is not as check casher, I only cashed checks exclusively to my retail clients that had credit w/my business as a courtesy. These checks where Payroll checks, very few company checks ever bounced, and if they did the money was immediately deducted from my business checking account. So really there is no purpose and no reason for them to be holding my $$, I have contacted IRS and State Board, I was told they have nothing to do w/the hold. To be safe and sure I have petitioned an Audit from the IRS. That is how sure I am of no wrong doing....
B of A has repeatedly stated they have the right to withhold any information as to why they closed my accounts. I've been told just like you as a customer can close your accounts w/them w/out an explanation, they can too, and I agree however they should release your money, and yes it was on a CD account. My argument is they don't want my business and don't keep my money either.
Thank you for your responce!!!
There is no loan behind this collateral, Bank of America required the cash collateral in order for me to have a business check cashing account, however my business is not as check casher, I only cashed checks exclusively to my retail clients that had credit w/my business as a courtesy. These checks where Payroll checks, very few company checks ever bounced, and if they did the money was immediately deducted from my business checking account. So really there is no purpose and no reason for them to be holding my $$, I have contacted IRS and State Board, I was told they have nothing to do w/the hold. To be safe and sure I have petitioned an Audit from the IRS. That is how sure I am of no wrong doing....
B of A has repeatedly stated they have the right to withhold any information as to why they closed my accounts. I've been told just like you as a customer can close your accounts w/them w/out an explanation, they can too, and I agree however they should release your money, and yes it was on a CD account. My argument is they don't want my business and don't keep my money either.
Thank you for your responce!!!
Wow, that is some ordeal! I spent many years in commercial lending with a national bank (not BofA). I never heard of anything like this. The business account you mention, is this a business loan or line of credit? The only way that they can hold your money is as collateral on a loan or if you have agreed to keep it in a money market account or CD for a specified time frame. If it is being used as collateral for a loan or line of credit – your only option is find another lender who will take out this loan – then the bank must release your collateral. If it is in a money market or CD account and not being used as collateral – then if you take it out early, you will be subject to an early withdrawal fee.
Other than that, I cannot think of why they are holding your funds unless they think there is fraud on your account (like check kitting or money laundering).
I would suggest that you seek out your branch president and very calmly ask for an explanation. Once you receive this and you are still not satisfied, then find a local (should be one in your city or state) FDIC office and take your complaint to them. They can more power over local branches that the OCC.
Please come back here and let us know what is happening or why they are holding your funds. Again, the only reason I can see them holding funds is that they are collateral on the loan – if so, then you must pay off the loan (either with your collateral or through another lender).
CharlotteW | Former Moderator |
3/23/2010 - 11:50 pm
Thanks so much for your question. I'm sorry to hear your frustration with your bank. I'm moving this thread over to the Loans, Grants, & Taxes board where I believe more expert might able to help answer your questions.
phanio | Contributor | 1/18/2011 - 8:45 am
CharlotteW | Former Moderator | 1/18/2011 - 8:45 am
alidaocon | Window Shopper | 3/23/2010 - 11:50 pm
alidaocon | Window Shopper | 8/9/2009 - 8:57 pm
alidaocon | Window Shopper | 3/23/2010 - 11:50 pm
alidaocon | Window Shopper | 8/9/2009 - 8:54 pm
phanio | Contributor | 3/23/2010 - 11:50 pm
CharlotteW | Former Moderator | 3/23/2010 - 11:50 pm
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