I discovered that when Bank of America sends out a payment from your Bill Pay on-line payment facility through a hard check they debt your account when the check is issued not when it is cashed by the recipient. I discovered this when one of my note holders sent back two checks issued through Bill Pay by BOA.in essence, BOA debits your account when the check is cut and then has use of your funds, in their account, until the check clears. This is reverse check kiting. The check states that the funds will not be available if the check is not cashed in 90 day’s; however, it is unlikely that the funds will be re-deposited in your account anytime soon thereafter or at all unless you notify BOA; presupposing you have knowledge of the discrepancy.
When you pay a bill on-line through Bill Pay, you assume that the Bank will debit your account when the check clears this is not the case. BOA employees told me they wait five days after the check is issued from BOA before they debit your account, however, the funds were disbursed from my account the same day they issued the check.in my case, they used my money for over two months without having to reconcile the difference. No doubt BOA encourages account holders to use Bill Pay…the service is free!
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