Bank of America Problems and Solutions

Bank of America may be one of the biggest banks, but many customers find a lot of issues with their banking services. What are they? Keep reading.

Like any major financial institution, Bank of America hasn't been spared from the wrath of countless irate customers over the years.

From excessive fees to fraudulent activities, a closer look at these problems may give you valuable insights and potential solutions.

Excessive Fees

Fees are a pain when you're working with a tight budget. Customers may encounter some fees and charges when banking with Bank of America like with most banks.

However, Bank of America has a history of "double-dipping" on returned transactions. This means some customers were charged an overdraft fee every time the same check or withdrawal could not be cleared because their account didn't have enough money.^[1]

The Consumer Financial Protection Bureau (CFPB) formally took action against the bank in July 2023. It required BofA to refund all repeat non-sufficient fund fees collected since September 2018 (totaling approx. $80.4 million).

But in the first half of 2022, Bank of America did take steps to eliminate non-sufficient funds fees and reduced its overdraft fee from $35 to $10.^[2]

Potential solutions:
Bank of America has an info sheet ^[3] listing all applicable fees and charges on their products and services. Make sure you're aware of these before you make a transaction. Here are some of them:

Bank of America also discloses how you can waive some by meeting certain criteria like minimum daily balances or making qualifying direct deposits. But here are some general tips to minimize or avoid fees and charges.

• Avoid using non-BofA ATMs.
  
• Sign up for e-statements.
  
• Sign up for overdraft protection if eligible.
  
• Avoid rush card replacements unless it is urgent.

Low savings APY

Bank of America is not known to offer the highest rates on their deposit products. In fact, most of their rates are even lower than the national average.^[4]

If you are looking to grow your savings, Bank of America might not give you the best APY.

Potential solutions:
With rates that leave much to be desired, you are probably better off with online banks and credit unions that often offer higher rates.

But if you prefer to keep banking with Bank of America, you might want to consider their CDs. Some CD terms offer better yields. But you need to be OK with a lock-in period.

False Advertising

Bank of America also has a history of deceptive or misleading promotional practices involving the marketing of its credit cards.

The CFPB ordered the bank to fork over $100 million to all affected customers in July 2023 (which includes redress for double-dipping on fees and withholding credit card rewards).^[5]

Also between 2010 and 2012, BofA telemarketers misled customers about their credit card protection plan offers. ^[6]

Potential solutions:
Before you sign up for any promos or a new account, make sure you confirm that you are indeed eligible for it and that you are on the right platform.

But if you don't get the perks of an account you were promised, the least you can do is communicate with the bank. If you don't get any resolution to your concern within a reasonable time, consider filing a complaint with the CFPB.

Fraudulent Transactions

Federal regulators have reports of unauthorized transactions using customer information at Bank of America. Specifically, they found instances of credit card accounts opened for clients without their permission.^[7]

The CFPB says this was done by some employees to reach goals for a sales incentive program that started way back 2012. The good news is that Bank of America has paused this program as of July 2023 to avoid further misuse of customer information and has been reimbursing affected customers since then.^[8]

Potential solutions:
Take proactive steps to safeguard your account. Make it a habit to check your accounts regularly. The sooner you spot any fraudulent activity, the more likely it gets stopped in its tracks.

Be vigilant against fraud outside of Bank of America too. For example, avoid accessing your online banking using free public Wi-Fi or unsecured networks.

Inconsistent Customer Service

Even a bank as big as Bank of America has room for improvement in its customer service. Complaints sent to the CFPB and other online reviews often mention slow response time from BofA customer support.^[10]

A large bank will have a large number of customers so you might experience long wait times when trying to reach a representative over the phone. Moreso, an issue may not always be resolved immediately which can make customers feel unvalued and frustrated.

Potential solutions:
The BofA mobile app has Erica — an AI-powered virtual assistant who can address the most common questions. It can also help connect you via live chat with a specialist.

But take the time to read your deposit account agreement and Bank of America's FAQs. This can reduce your need to contact customer service.

You may also opt to visit a branch instead to discuss your concerns in person. But make sure you have proper documentation if you need to file a formal complaint.

Bottom Line

Banking with Bank of America can be convenient because of their presence nationwide. But there's always room for improvement to keep customers and regulators happy.

Member FDIC

Bank of America Advantage Banking - $300 Bonus Offer

Learn More

Expires 1/31/2025

• The $300 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
• The offer is for new checking customers only.
• Offer expires 01/31/2025.
• To qualify, open a new eligible Bank of America Advantage Banking account through the promotional page and set up and receive Qualifying Direct Deposits* totaling $2,000 or more into that new eligible account within 90 days of account opening. Bank of America Advantage SafeBalance Banking® for Family Banking accounts are not eligible for this offer.
• Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
• Additional terms and conditions apply. See offer page for more details.
• *A Qualifying Direct Deposit is a direct deposit of regular monthly income – such as your salary, pension or Social Security benefits, which are made by your employer or other payer – using account and routing numbers that you provide to them.
• Bank of America, N.A. Member FDIC.

Member FDIC

Bank of America® Business Advantage Banking Checking Account - $200 Bonus Offer

Learn More

Expires 12/31/2024

• The $200 bonus offer is an online only offer and must be opened through the Bank of America promotional page.
• The offer is for new eligible business checking customers only.
• Offer expires 12/31/2024.
• To qualify, deposit $5,000 or more in New Money* directly into a new eligible Bank of America Business Advantage Banking account within thirty (30) days of account opening.
• Maintain an average balance of $5,000 in that new Business Advantage Banking account during the Maintenance Period**.
• Once all requirements are met, Bank of America will attempt to pay bonus within 60 days.
• Additional terms and conditions apply. See offer page for more details.
• *New Money is new funds deposited into your business checking account that are not transfers from other Bank of America deposit accounts or Merrill investment accounts.
  
• ** The Maintenance Period begins thirty-one (31) calendar days after account opening and ends ninety (90) calendar days after account opening.
  
• Bank of America, N.A. Member FDIC

While the bank has already made progress in addressing some of its problems, it can't hurt to stay in the know as a customer. A bank's deed and misdeed could be the dealbreaker for you to decide whether to continue working with them or otherwise.

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