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BBB Accredited Business since

Bank of Internet USA, a division of BofI Federal Bank

Phone: (877) 541-2634 Fax: (858) 350-0443 View Additional Phone Numbers 4350 La Jolla Village Dr #140, San Diego, CA 92122 View Additional Email Addresses http://www.bankofinternet.com View Additional Web Addresses


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Description

This company offers banking services in all 50 states via the internet and mortgage services for multi family and residential homes.


BBB Accreditation

A BBB Accredited Business since

BBB has determined that Bank of Internet USA, a division of BofI Federal Bank meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.


Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised the rating for Bank of Internet USA, a division of BofI Federal Bank include:

  • Length of time business has been operating
  • Complaint volume filed with BBB for business of this size
  • Response to 11 complaint(s) filed against business
  • Resolution of complaint(s) filed against business


Customer Complaints Summary Read complaint details

11 complaints closed with BBB in last 3 years | 6 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 1
Billing/Collection Issues 0
Delivery Issues 0
Guarantee/Warranty Issues 1
Problems with Product/Service 9
Total Closed Complaints 11

Customer Reviews Summary Read customer reviews

2 Customer Reviews on Bank of Internet USA, a division of BofI Federal Bank
Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 2
Total Customer Reviews 2

Additional Information

BBB file opened: July 13, 2000 Business started: 09/27/1999 in CA Business incorporated 09/27/1999 in CA
Type of Entity

Corporation

Business Management
Ms. Sandy Hill, First Vice President / Compliance Manager
Contact Information
Principal: Ms. Sandy Hill, First Vice President / Compliance Manager
Number of Employees

300

Business Category

Banks

Alternate Business Names
ApartmentBank BofI Holding Inc NetBank
Referral Assistance

The following Government Agency(s) or Association(s) may be able to provide you additional information:

U.S. Federal Deposit Insurance Corporation (FDIC) 15 Rockdale Street, Braintree MA 02184-0172 http://www.fdic.gov/

Consumer Financial Protection Bureau P.O. Box 4503, Iowa City IA 52244 Phone Number: 855-411-2372 Fax Number: 855-237-2392 http://www.consumerfinance.gov info@consumerfinance.gov

Industry Tips
Credit Card Promotions Debt Collection Rights-Spanish Debt Relief Strategies Fair Credit Reporting Financial Industry Identity Theft

Additional Locations

  • 4350 La Jolla Village Dr #140

    San Diego, CA 92122 (877) 541-2634 (800) 656-5626

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BBB Customer Review Rating plus BBB Rating Overview


BBB Customer Reviews Rating represents the customers opinions of the business. The Customer Review Rating is based on the number of positive, neutral and negative customer reviews posted that are calculated to produce a score.

Customer Review Experience Value
Positive Review 5 points per review
Neutral Review 3 points per review
Negative Review 1 point per review

BBB letter grades represent the BBB's opinion of the business. The BBB grade is based on BBB file information about the business. In some cases, a business' grade may be lowered if the BBB does not have sufficient information about the business despite BBB requests for that information from the business.
Details

BBB Letter Grade Scale

BBB Rating Value
A+ 5
A 4.66
A- 4.33
B+ 4
B 3.66
B- 3.33
C+ 3
C 2.66
C- 2.33
D+ 2
D 1.66
D- 1.33
F 1
NR -----
Star Rating scale

  Average Score
5 stars 5.00
4.5 stars 4.50-4.99
4 stars 4.00-4.49
3.5 stars 3.50-3.99
3 stars 3.00-3.49
2.5 stars 2.50-2.99
2 stars 2.00-2.49
1.5 stars 1.50-1.99
1 star 0-1.49

BBB Customer Review Rating plus BBB Rating is not a guarantee of a business' reliability or performance, and BBB recommends that consumers consider a business' BBB Rating and Customer Review Rating in addition to all other available information about the business. If the BBB Rating is NR then only Customer Reviews are used for the Star Rating.

Complaint Detail(s)

12/2/2015 Guarantee/Warranty Issues | Read Complaint Details
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Additional Notes

Complaint: I initiated an online application with Bank of Internet Federal Bank (BOFI). I received a call back and details about rates, fees, $500 discount for ****** Executive Membership, $50 discount for initiating the application via Internet. Much of the process and document upload process happened via Internet. I was sent a Good Faith Estimate (GFE) on Sep 8th. Based on that I paid $495, the appraisal fees. The rest of the processes began and one of the steps of the process required me to load tax documents, insurance declarations, lease agreement, driver licenses, etc. That process did take me about 2 weeks to complete given my travels as a consultant and the need to assemble all the forms. Along the way I was asked and provided details on when I will be away and out of pocket and I informed that I will be away between Nov 5th - Nov 15th. I first received a call from the appraiser on Nov 4th to schedule the appraisal. Since I have tenants and I am required to provide them 24 hour notice before scheduling the appraisal and since I was travelling overseas on Nov 5th evening, the earliest I could schedule the appraisal was on Monday Nov 16th, which I did. The appraisal happened on schedule on Nov 16th. On Nov 17th I received a copy of the appraisal acknowledgement form without the appraisal. Subsequently I was forwarded the appraisal and the appraisal acknowledgement form. Soon after that, still on Nov 17th I was forwarded a new GFE with changed circumstance which included a higher fee for appraisal. When I inquired I was told that is because it is an investment property. Well my very first online inquiry specified that it is an investment property. And all the discounts had also vanished. That was followed by yet another GFE on Nov 18th that reflected additional fees. At this point my fees are 40% are higher than the original GFE.

Desired Settlement: I would like BOFI to honor the original GFE and proceed forwards with the process. Alternatively, I would like to receive a refund of $610 - $495 for the appraisal fee and $115 for the condo questionnaire.

Business Response:

Please refer to attached document.

This email is to acknowledge receipt of your correspondence from ********* ********* (ID #********). BofI Federal Bank takes consumer feedback very seriously. We have fully reviewed this matter and a detailed response has been emailed directly to the consumer on November 24, 2015.

In order to protect consumer privacy, we are unable to provide you with the details. If you have any questions or concerns, I may be reached at ************x****.

Sincerely,

***** **********

********** *******

10/3/2015 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: I became a customer of the online bank known as *******, a little over a month ago. I was approved for a checking account with this bank. In order to fully activate my account, I was required to submit about $50.00 to the bank, but I set in a $10.00 money order. I was then told that I could easily add money to the account by using ***** *** reload at the register, which I did. I added about $1000.00 to my debit card which I had received. After this, I made no more transactions on my card, and I put my debit card in my dresser drawer and didn't remove it at all. The money was for college. There is about 12 people that stay here with me and my mom, and people are constantly coming in and out of my mom's house. ******* does NOT issue pin numbers at all. Instead, when you make your first purchase, whether it be an ATM withdrawal or POS transaction, you can make up ANY pin number you choose. A few days after I put my debit card up, it came up missing from my dresser drawer. I dont know who took my debit card, but there was over $1000 on it and someone made several unauthorized purchases and ATM withdrawals using my card. I immediately notified the bank, and also notified them that someone may have illegally accessed my online account using my username and password, and asked them to disable it. I also cancelled my card via the automated 24 hour ******* phone system. I changed my password to my online account as well. I then filed a ATM/ Debit Card Dispute with the bank, listing all of the unauthorized transactions on my account. I sent the paperwork in, and the bank acknowledged receipt of the paperwork. A few days later, on 9/11/2015, someone called me from the bank, presumably, a claims investigator, and asked me about my claim, and how my debit card came up missing. he was VERY rude with me, and then told me,"we don't have to give you ANY provisional credit because your account is new with us. we are going to press charges against the people who are responsible."

Desired Settlement: The claims investigator said," we are going to press charges against the individuals responsible, so I hope you don't have a problem with that." I told him,"Go right ahead, because I'll help you press charges, so as long as Regulation E of the Federal Reserve is adhered to, and the funds taken are placed back on my account." He hung up the phone, and after that, my account was disabled online. I want the money stolen from me to be credited back to my account, and for ******* to stop being rude to me and stop treating me like a criminal.

Business Response:

Please refer to attached document.

September 25, 2015
This email is to acknowledge receipt of your correspondence from  ******* ****#********. Bofi Federal Bank takes consumer feedback very seriously. We have fully reviewed this matter and a detailed response has been emailed directly to the consumer on September 25, 2015.

In order to protect consumer privacy, we are unable to provide you with the details. If you have any questions or concerns, I may be reached at ***** *************.

9/17/2015 Problems with Product/Service | Complaint Details Unavailable
6/17/2015 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: I had a checking account (**********) of ********* ****, which was acquired by Bank of Internet sometime. They did not notify me how to access the account, which has a $1003.98 remaining balance. I want to take back my money.

Desired Settlement: Close the account and send me the remaining balance $1003.98.

Business Response:

Please refer to attached document.

June 15, 2015

This email is to acknowledge receipt of your correspondence from ***** **** #********. Bofl
Federal Bank takes consumer feedback very seriously. We have fully reviewed this matter and a
detailed response has been emailed directly to the consumer on June 15, 2015.

In order to protect consumer privacy, we are unable to provide you with the details. If you have
any questions or concerns, I may be reached at ***** ******** x****.

Sincerely,

***** **********
Compliance Officer

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution would be satisfactory to me.  I will wait for the business to perform this action and, if it does, will consider this complaint resolved.

Regards,

***** ****

6/11/2015 Advertising/Sales Issues | Read Complaint Details
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Additional Notes

Complaint: I started the process of getting a loan on Monday, 4/27/2015. On Tuesday I got the loan docs to sign, but they put the wrong loan amount. I was promised new docs soon, but it took a full day, even though he led me to expect them that day and then he told me Wednesday morning, they did not get there until the afternoon. I also got a breakdown of costs, which I had not yet received, and saw that I was getting an impound account. I called him before 8am and Thursday, and told him I did not want one, we had never discussed it. At this point, I felt like things were not on the level. I know that impound accounts are not a good deal for people who can handle their own finances. To justify this mistake he asked "well, don't you already have one?" I pointed out I do not currently have a mortgage, so how would I have an impound. He agreed to get it removed, and to let me know in a couple of hours, also to send a new set of loan docs to sign. I heard nothing. At 2:45 I phoned. At 3pm I followed up with an email. At 3:30 I told him if things were not resolved by 8pm, I would contact BBB. He responded at 5:30 that he had been in a meeting all day. He did not say anything about this when he told me he would get back to me in the morning. But, at 4:45 I got an email from a manager with the revised terms but no documents. Then I got another email from the loan officer, confused why I was getting upset. I laid it out. Today the supervisor has taken over. BUT now he is saying I will not see the money for 45-60 days, even though the loan officer was saying 30-40 (as did my credit union). He is also making no effort to expedite the loan documents, saying I will get them this afternoon (even though I told him I was heading out of town this morning). At this point, I think they are hoping I will just leave. Rates have risen, I am a problem, what is the point? But, sadly, I cannot afford to leave now.

Desired Settlement: I want to deal with someone who is competent and not hostile. I want the rates I was quoted (and no one on your side is disputing this fact) in the time frame I was initially told - which is 30-40 days (as of Tuesday the 28th, since that is when the errors on your side started). I would also like an answer to the questions 1) is it your institutional practice to give people impound accounts without asking? and 2) did the loan officer give the unrealistic timeline, or did the manager give me an extra long time frame for some reason? I decided to use your service because you get great reviews and your rates were excellent. Now I want to see what everyone else is seeing when they give these great reviews.

Business Response:

This email is to acknowledge receipt of your correspondence from ***** ******* #********. Bofl
Federal Bank takes consumer feedback very seriously. We have fully reviewed this matter and a
detailed response has been emailed directly to the consumer on May 17, 2015.

In order to protect consumer privacy, we are unable to provide you with the details. If you have
any questions or concerns, I may be reached at ***** ******** *****.

Sincerely,

***** **********

Compliance Officer

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

The response is a mere retelling of the time line. It does not address many of my concerns. Nor does it even accurately show the time line...

One of my concerns was the fact that Mr ******* told me it would take 45-60 days to get the loan, when I was originally told 30-45 days. I felt it was a passive aggressive move on his part, and when I pushed him on it, he backed down a bit, but not much. I have asked other loan people in other companies and a realtor, and they all scoffed at the idea that it should take over 30 days.
Another concern was the fact I was given an impound account without my consent. Yes, you backed down quickly when I objected, but it seems shady to me.
On April 30th, when I was getting very frustrated with the time it was taking to get an accurate set of disclosure documents, Mr. ******* promised them to me the next day - on May 1st. I was leaving town and requested they get there in the morning, but he refused. This, I thought, showed bad service on his part, since the previous two sets had errors. In fact, the time frame he was going me to get the forms was longer than the original set had taken. At 4:30 on May 1st, I send him an email telling him I had not yet received the documents. Seven minutes later he responded that they were sent out at 1:13. It was a terse message - no offer to try and find out why they had not been sent out, nor an offer to resend.  I looked in my spam folder and everywhere it might be. I did not get it. Nor did my husband receive his copy. I am not sure what went wrong but they were not sent. I sent him several emails and got nothing.
By this time, I was feeling frustrated and trapped into your company because rates had gone up a bit. Then I had a great idea - on May 1st at 5pm, I sent your offer to a couple of other lenders and one got back to me quickly with an offer to match your terms exactly. I told him the story and my frustration - he also agreed that the 45-60 day to get the loan was absurd, and said 30 days is more than enough. At that point I wrote to Mr ******* and told him I might pull out of our deal, but I still wanted those disclosure forms - because, until I got the forms from the second company, I was not sure I would switch. Who knows? Maybe Mr ******* was right and the time I was being made to wait was normal. But, in the end, the new lender got the documents to me before BOFI did, so I went with them. May I point out that the other company started the process Friday evening and in theory your company should have started the process to reorder the documents sometime the day before. And, in two weeks since I started using them everything has gone very smoothly and I should have final approval in a day or two - less than three weeks! 
I would also like to take issue with the comment "you also requested a third set of documents..." Mr ******* also made a similar comment. I get the impression you think I was being unreasonable in asking for so many sets. But, you do realize that each request was for a corrected version? That the first two versions had errors? 
Also, the last contact I had with BOFI was on Monday, when I finally received the documents. There was nothing on May 5th. I also got a very kind apology from ******* for his part in the mix up. I do not blame him for any of this. I thought he was making too many mistakes and requested his supervisor, but that is when things really went downhill. Again, I would like to point out that I felt Mr ******* was unprofessional. I think he was being purposely obstructionist to the point of trying to get me to quit the bank, and in that he was successful.
I was did file with BBB in hopes that we could get this settled and I could continue with BOFI, but it took you quite a while go get back to me, which makes me doubt you take these complaints seriously, despite your words. 
Regards,

***** *******



Business Response:

This email is to acknowledge receipt of your correspondence from ***** ******* #********. Bofl
Federal Bank takes consumer feedback very seriously. We have fully reviewed this matter and a
detailed response has been emailed directly to the consumer on May 28, 2015.

In order to protect consumer privacy, we are unable to provide you with the details. If you have
any questions or concerns, I may be reached at ***** ******** *****.

Sincerely,

***** **********

Compliance Officer

Consumer Response: Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID ********, and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

I feel like you are not getting what I am saying - please do not blame this on ******* *******. I feel the problem is with his boss, Mr *******. I did get angry Mr *******, when I asked him to redo the papers for the third time (to remove the impound account) because he promised to get back to me in the morning, and nothing happened until late that day (after I sent him some angry emails), but when I did hear, I heard from Mr. *******. Then I asked for a new agents, and Mr ******* told me he would take over, which was not what I wanted, because I was pretty sure it was his fault I did not hear in the time frame that Mr. ******* had given me.

Also, nothing you say will ever make me believe that the 45-60 day time frame was anything beyond a passive aggressive act by Mr. *******.  Several other loan companies had quoted the 30-45 day number. I would also like to point out that First Choice, the lender who stepped in to fix this mess, has managed to do it in 31 days. When they took over the job, they pretty much agreed to get it to me within the 45 day window you promised me from the day I started with your company, thus doing it faster than they normally would. I am having trouble understanding why First Choice was able to step up and fulfill your promises and Mr ******* was absolutely intractable when asked to expedite the third set of loan documents (in fact taking considerably longer than the first (albeit incorrect) set had taken. He was equally intractable when I requested he speed up the process to keep with the original time frame. When I started with your company, I made it clear I needed the money by June 4th. I am grateful to the people at First Choice for making that happen, and will be continue to be appalled by the way I was treated by Mr *******.
So, how is this resolved? that ship passed when it took you so long to respond to my initial complaint. I made that as a last ditch effort to get my loan out of the mess it was in. I wanted to make it work, but if I had stuck with BofI, I never would have received the money in time. I naively assumed that when I sent you that complaint, you would get things done. Because we all know, that if anyone at BofI would have shown any interest in working with me, you could have given me the same service I received at First Choice. 
Mostly, I think your response is just spin. 

Regards,

***** *******



3/12/2015 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: NetSpend Corporation, a subsidiary of Bank of Internet, has opened a fraudulent account in my name. Numerous attempts by email and telephone to close the account have not succeeded. Here is an email from NetSpend: "Dear *******, Thank you for contacting NetSpend Customer Care! I am sorry to hear that you have a NetSpend account in which you did not authorized. To complete your account closure, you may speak with a Customer Care representative since I am unable to do so via email conversation for security reason. I apologize for any inconvenience this may cause. Thank you for choosing NetSpend. Have a great day! Billy Customer Care Specialist Answers to frequently asked question and self-help options can be found online at https://www.netspend.com/help or by calling Customer Care at 1-86-NetSpend(1-866-387-7363). Hours of operations: Monday to Friday 8am-10pm CST. Saturday to Sunday 8am-8pm CST." One of several telephone attempts to reach a supervisor for NetSpend Corporation resulted in a hold time of 78 minutes and the call was disconnected by NetSpend. This company is unreachable even though they have been notified that the account is fraudulent.

Desired Settlement: Written confirmation from BofI and/or NetSpend Corporation that the fraudulent account opened in my name has been closed.

Business Response:

March 11, 2015

BBB Case ID number: ********

This email is to acknowledge receipt of your correspondence from ******* ***. Bofl Federal Bank
takes consumer feedback very seriously. We have fully reviewed this matter and a detailed
response has been em ailed directly to the consumer on March 11, 2015.

In order to protect consumer privacy, we are unable to provide you with the details. If you have
any questions or concerns, I may be reached at 858-649-2186 ext. ####.

Sincerely,

***** **********
Compliance Officer

Consumer Response:

Better Business Bureau:

I have been notified by NetSpend Corporation, the subsidiary of B of I, that the fraudulent account created in my name has been cancelled.  I believe this action occurred at least in part from the intervention of BBB of San Diego.

Thank you for your invaluable assistance.

******* ***

12/19/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Had $100,000 CD with this bank for 8 years. Matured for a second time on 11/21/14 with a ten calendar day grace period. Called repeatedly to close the CD account on Monday 11/24 and was unable to get through. Called again later in the grace period with the same result. The bank was not open on five of the ten days of the grace period (two weekends and Thanksgiving day). Finally got through to them on Tuesday, 12/2 and was told that because the grace period had passed they would charge me more than $500 in penalty fees to get my money back. The manager I finally spoke to, ****** *****, acknowledged that the bank's call volume had been "unusually high" during the period I attempted to reach them, resulting in extraordinary wait times and said that since I did not have an internet login with them, I should have written to them to close the account instead of continuing to attempt to call. If a bank is set up to handle transactions by phone (this bank has no physical branch locations) and claims, as they do that "Our dedicated customer support associates are a quick click or call away, ready to help and fully committed to your satisfaction," not having customer service representatives available to answer the phones goes beyond being an inconvenience and becomes criminal if the bank then inflicts onerous financial penalties on their customers for not being able to reach them by phone.

Desired Settlement: Refund of penalty.

Business Response:

Please allow this letter to serve as a response to the complaint that you lodged against Bofl Federal Bank (the

MBank") with the Better Business Bureau (BBB). In your complaint you mentioned that you were dissatisfied with
the manner in which the closure of your Certificate of Deposit (CD) account was handled.
We have researched your account and the transaction in question and have found you were contacted by Direct
Banker ****** *****. Direct Banker ***** apologized for the inconvenience and frustration caused by the original
disagreement. During the phone conversation with Direct Banker *****, you accepted our apology and resolution
to reverse the early withdrawal penalty. After the phone conversation, the Bank mailed a check for $520, the
amount of the penalty, to your address of record.
We are grateful to have had you as a client and appreciated your desire to bank with us.
Please feel free to contact us if you have any other questions.

12/15/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: I had two certificates of deposit with The Bank of Internet in 2013. Early this year I called because I had not received my 1099 tax form for the interest I had earned from the bank. I spoke to an agent and asked if they would send another copy of the form to me. The person I spoke with said that all the forms had not gone out yet, and I still might receive my copy. In short, I never did. This November I had reason again to get a copy of the 1099. I called on November 10th, and several times since, and I still have not relieved the form. I need this form to send to a pharmaceutical company in order to qualify for their patient assistance program.

Desired Settlement: I need my 1099

Consumer Response:

Better Business Bureau:

I filled out an online complaint form against:

The Bank of Internet

4350 La Jolla Village Dr #140, 
San Diego, CA 92122

Since they have rectified the situation, I would like to cancel the complaint. Please let me know how I can do it.

Thanks,
*** ******

 

4/23/2014 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: this complaint relates to Bank of Internet (BOI) fiduciary responsibility and the customer service associated with upholding this responsibility. I recently closed a checking account with Bank of Internet, requesting the remaining balance be sent as a check be sent to my address on file. This was done promptly and without issue. I first tried to deposit this check to another bank via online deposit and was unable to deposit using this method (although I have used this online deposit successfully many other times). I then took the check to my local bank branch office, and deposited it in person. The next day I received notification from the bank that they had reversed the transaction on the check deposit, because they could not process it as it was not valid. They called the bank it was drawn on and they said it was voided. It's missing characters with the routing #'s and account number. They also call Bank of Internet (operations area) and they said it was a voided check. Personally, when I look at the check after the fact, I can tell it's missing OCR characters and only has "|" and "<" and ">" between the routing and account numbers. I immediately contacted BOI customer service and they noted the issue, and stated it would be resolved within 24 hours. I called within the 24 hours to make them aware the issue was with the missing OCR characters, but quite simply, didn't really want to listen to what I had to say. I then waited to hear from them, but after the 24 hours were up, called them. After being put on hold for a lengthy time, they came back and said they issue wasn't yet resolved. Once again, they were trying to blame the bank where I attempted to deposit the check without wanting to listen to what was causing the issue. The issue has not yet been resolved, and my sum**** of the issue is they appear to believe the funds in my check account belong to BOI and they have no fiduciary responsibility of transferring this remaining balance to the me (the depositer).

Desired Settlement: Remaining monies in my checking account ($366..34) be wired IMMEDIATELY to my checking account with my local bank. Also, an apology stating that they indeed breached their fiduciary responsibility.

Business Response: Please see attached response letter for Bofi Federal Bank's response to Ms. ********. Thank you.

Dear Ms. ********:

Please allow this letter to serve as a response to the complaint that you lodged against Bofl
Federal Bank afkfa Bank of Internet USA (the "Bank") with the Better Business Bureau (BBB) on
March 20, 2014.

In your complaint you indicate that you recently closed your account with the Bank and asked to
have the balance of your funds sent to you immediately via check. You stated that you received
this check without any issue. However, upon attempting to deposit the check you had difficulties
and it was ultimately determined that the check had been prepared with faulty encoding.

During our attempts to assist you, we had you read us the MICR line of the check; but if we had
asked for an image of the check instead, we would have immediately seen the problem.
Unfortunately, the situation was further complicated by the fact that we did not have a good
phone number on file for you. We attempted to call the numbers that we had, but were
unsuccessful.

First, I want to apologize for the bad experience you had with this check. Because of the encoding
error and our delays in recognizing the nature of the problem there was an unfortunate delay in
getting your funds to you. We have researched the check and made corrections to guard against
this happening in the future. As we became aware of the mistake, our Processing Supervisor,
**** ********* spoke with you to assist you and resolve the situation. On March 25, 2014, we sent
you a new check in the amount of $366.34, which was the remaining balance in your account, via
overnight mail.

We apologize for any inconvenience you may have experienced. Thank you for bringing this issue
to our attention so we were able to get your funds to you and to make corrections to avoid
problems of this nature in the future.

Please feel free to contact us or **** ********* directly if you have any other questions. There
being no further action required, we will close this case.

10/3/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Bank of Internet bought out my old bank, Principal Bank, and after I reviewed their withdrawal policies along with no having any physical locations near by, I decided to not bank with them but instead to bank with a local bank here in town. I contacted bank of the internet immediately after my decision to ask them to close both my checking and savings accounts before they got transferred over from principal bank. They re-assured me that request is in process and it will take few days for me to get the remainder balance of my checking account ($99.55). After over 2 weeks, I contacted bank of internet to inquire about why I still have not received the check and they informed me that they made a mistake in the closing process of my account! They also suggested that I write a personal check from one of my remaining principal bank checks to myself for the above amount and that would automatically close out my account. I followed that suggestion, and this morning I found out that my local bank rejected the check and charged me a $7 transaction fee on top of it! I contacted my local bank and they informed me that the check I tried to deposit didn't go through because the account was closed!!! I was furious, I contacted the bank of internet to let them know of the situation and they told me this time that a check has been mailed to me and that my account was closed! I was even more furious about their incompetent behaviors and about the lack of information sharing between their team members about what was going on with my situation. I asked them to refund me the $7 that my local bank charged me for the mistake that they made, they instead asked me to 3-way call my local bank so that they can explain to them that it was a mistake on their end. I informed them that I was at work and that this process has already cost me so much time and money for something so simple as to closing ones account. The CSR was incredibly rude and careless and combative with me on the phone. It is my professional opinion that this bank is not ran by professionals but my mobsters. I also got feedback from friends of mine here in town that used to bank with principal bank that got transferred over to bank of the internet and received similar feedback about this bank.

Desired Settlement: I expect a bank to take ownership of the problems and headaches they cause to their customers, especially when it comes to maintaining the highest standards in customer service and in handling situations that should have not happened in the first place. I expect a check from them for the amount of $7 for the transaction fee my local bank charged me because of their incompetency.

Business Response: Dear Mr.  *****,


We are sorry to hear about your experience during the conversion of your deposit  account  from 
Principal Bank to Bank of the Internet (Bofl) that occurred on September 9, 2013.  We tried very 
hard to make the transition of all the products,services, and accounts as seamless as possible for 
the previous customers  of Principal Bank as they converted over to Bofl.


From the details you provided, we did not meet that goal in the handling of your request to close 
your account after the conversion.   We apologize  for the inconvenience that was created  based on 
the responses and instructions you received from  our staff regarding this request.


We are enclosing a check for $7 to reimburse you for the expense you incurred because of the 
conflicting instructions. We once again apologize  for the misunderstanding.


Sincerely,


****** **********
FVP, Deposit Operations

7/29/2013 Problems with Product/Service | Complaint Details Unavailable