Bank of America gets fined $10 million for illegally taking payments from customers

The Consumer Financial Protection Bureau (CFPB) said Wednesday it ordered Bank of America Corp.
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to make a $10 million civil penalty and refund or cancel fees from unlawful garnishments and review its processing systems for them. A Bank of America spokesperson said in an email to MarketWatch that the company will refund associated fees to customers involved in about 3,700 cases and that the bank has “enhanced our processes to ensure compliance with all applicable state laws as we execute court orders.” Since Aug. 1, 2011, Bank of America unlawfully garnished at least 3,700 out-of-state accounts, the CFPB said. Customers whose accounts were garnished have paid at least $592,000 in fees. “Bank of America imposed unlawful garnishment fees and injured its customers by inserting unenforceable clauses into contracts in an attempt to strip legal rights from families,” said Rohit Chopra, director of the Consumer Financial Protection Bureau. Shares of Bank of America rose 1.6%. The stock is down 15.3% in 2022, compared to a drop of 10% by the Financial Select Sector SPDR ETF
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