Bank of America has made its rounds in the press with a huge salary increase for CEO Brian Moynihan. However, now they have been slapped with a fine by the Consumer Financial Protection Bureau.
According to reports, the banking behemoth mishandled over 3,700 customer accounts within the course of the past nine months by freezing customer accounts, charging garnishment fees, as well as sending funds to creditors who were located in various states.
"The CFPB is ordering Bank of America to fix its systems, clean up its contracts, and make its victims whole", Rohit Chopra, Director, CFPB
In each case, which was investigated by the Consumer Financial Protection Bureau, those creditors were not only located in states that the customers did not reside in, but the law in the home states of each person would have legally protected them from such actions.
As a result of the full impact of the illegal actions by the bank, customers were bilked out of $592,000 in total funds that should have remained in their accounts. In addition, when questioned, bank representatives wrongfully advised customers that they had no rights in regards to the garnishment orders due to the state where the orders were obtained. however, the opposite was actually true.
Ultimately, Bank of America was ordered to pay $10 million in fines regarding the incident which comes just a few years after being fined for unlawful credit card practices with nearly $1 billion going towards restitution.
The bank remains one of the lagest in the country with close to $3 trillion in assets owned.