Bank of America got slapped by the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC), earning fines of $125 million and $100 million, respectively, from the two organizations. The bank’s Unemployment Benefits Prepaid Card Program received OCC penalties for “violations of law and unsafe or unsound operations.” The OCC found flaws in the operating procedures, risk management, and internal controls of the prepaid card program. The CFPB completed an enforcement action against Bank of America for filing unauthorized, out-of-state garnishment orders against its customers’ bank accounts, and failing to adequately investigate and address consumer complaints of unauthorized transactions. Bank of America must now make amends to customers harmed by its practices as well as enhance its internal controls for contract review and approval procedures, and enterprise-wide complaint risk management.
Bank of America Racks Up $225 Million In Fines From The OCC And CFPB