The Investment Scientist

Update: You Bank May Lose All Your Money

Posted on: May 10, 2019

ON-CM130_bank04_B620_20180330091324.jpgShortly after I sent out the last newsletter, my father-in-law told me that his lost money was credited back to his BOA account. This just shows how powerful my newsletter is!

OK, I was kidding. Here is what really happened.

After BOA denied his claim twice based on the 60-day excuse, even though the police had already identified the fraudster’s bank account at another bank, my father-in-law filed a claim with CFPB and OCC. (Pop quiz: what are they?) He then wrote a long email to Holly O’Neal, Head of Consumer Client Services of BOA in which he admonished and implored the bank:

Bank of America’s lack of ordinary due diligence in detecting fraud and failing to perform its fiduciary duty resulted in my lost retirement funds. It is disappointing, deplorable and shameful that a global company like Bank of America is dismissive and choosing not to investigate this type of crime, and, instead, closed the fraud claim fast, without offering support or common courtesy to a loyal customer. It is an inhumane treatment of a consumer.

He was also in touch with an attorney who is preparing a class-action lawsuit – apparently this is not an isolated case – but no legal action has been taken. Then, all of a sudden, the lost money was credited back to his account. He even got calls from the bank pleading him to close the case with CFPB and OCC.

Despite this happy ending, the burden still falls upon ourselves to protect our identities and bank accounts. I have written two articles about fraud and identity theft which are still very relevant. Please read them and take the actions suggested.

Here is the answer to the pop quiz: CFPB is Consumer Financial Protection Bureau and OCC is Office of Controller of the Currency.

Schedule a 2nd opinion financial review, buy my wealth mgmt books on Amazon.

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Michael Zhuang is principal of MZ Capital, a fee-only independent advisory firm based in Washington, DC.


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