CFPB takes action against Bank of America

by Keith Schostag, NAFCU Compliance Blog

On May 4, 2022, the Consumer Financial Protection Bureau (CFPB) announced a $10 million civil penalty and the filing of a consent order against Bank of America, N.A. (BoA) for actions taken in respect to out of state garnishments.

Alleged Conduct

In the Consent Order, the CFPB alleges the following conduct:

  • BOA deceived customers about their rights by:
    • Falsely representing that their customer’s rights to have funds exempted was governed by the law of the state that issued the garnishment.
    • Informing customers that Bank of America applied the exemption law of the state that issued the garnishment when, generally, the law of the state where the customer resided applied.

 

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