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Consumer Bureau action imposes $10 million fine on one of nation's largest banks. The Consumer Financial Protection Bureau (CFPB) has fined Bank of America $10 million for the bank's unlawful processing of out-of-state garnishments.

We all know that high fees are a problematic aspect of banking in the United States. But according to Stephanie Cohen from Goldman Sachs, the firm is in the midst of internal testing for a no-fee, interest-bearing checking account.

The Banking Industry Career Fair will be held on Tuesday, April 19 at the University of St. Francis - St. Bonaventure Campus in downtown Joliet from 3 PM to 5 PM CST. The job fair is sponsored by the University of St. Francis Career Success Center, the Workforce Services Division of Will County, and Hometown National Bank, a branch of banks located in Joliet, Peru, and LaSalle.

Senate Banking leaders issue letters calling for consumer relief. A group of U.S. Senators led by Senate Banking Committee Chair Sherrod Brown of Ohio issued a series of letters calling on major U.S. banks to eliminate overdraft fees.

Coalition backs legislation that would close regulatory loophole. A coalition of advocacy groups representing consumers and banks is calling on Congress to close a loophole that allows so-called fintech companies to operate as banks without any of the attendant regulation.

FlexWage earns favorable ruling from California Department of Financial Institutions. The California Department of Financial Protection and Innovation (CDFI) issued an opinion that said that FlexWage's earned wage access product is not a loan under California law and therefore does not fall under the regulatory purview of CDFI.

A SWIFT (Society for Worldwide Interbank Financial Telecommunication) code is almost always required when you are party to an international money transfer. The SWIFT is what allows a specific bank account to be identified in an international banking transaction. Without the use of a SWIFT, generally, it is impractical or impossible to make an international transfer.

Alternative short-term loans are available at rates at or under 36%. A survey conducted by the Woodstock Institute with partners New America Chicago and the Chicago Urban League shows that payday loan rate caps are having a positive impact on consumers and communities.

As of Monday, February 14th, Roger Ng, former head of investment banking in Malaysia for Goldman Sachs, will stand in trial in New York. He is currently accused of orchestrating a crucial role in the massive 1MDB scandal.

Consumer groups issue report calling out TAB Bank and EasyPay over predatory practices. Consumer advocates are calling out EasyPay Finance and Utah-based TAB Bank for their roles in predatory loans for financing puppies. These loans can carry rates up to 189%. Consumer and animal welfare advocates joined together to issue a report on the practices of EasyPay and their bank partner TAB Bank.

FinWise Bank partnered with lender charging 149% interest on loans. The District of Columbia yesterday announced a settlement with online lender Elevate that will refund millions of dollars to consumers. The agreement was reached as a result of Elevate violating interest rate caps in DC — the maximum rate for a loan there is 24%.

Payday lender was charging 99%-251% interest on loans. Advocates at the National Consumer Law Center applaud District of Columbia Attorney General Karl Racine’s announcement today that DC has reached a settlement with predatory rent-a-bank lender Elevate that requires it to abide by the District’s interest rate limits and to provide over $4 million in relief to wronged consumers.

OppFi seeks to get around state law designed to protect consumers. The Chicago Sun-Timesreports that online lender OppFi engaged in a shadow lobbying campaign to overturn Illinois’ new Predatory Loan Prevention Act (PLPA) which caps interest rates on payday loans at 36%.

Banks, Credit Card Companies Earning from Fees rather than Competing on Service. Today, the Consumer Financial Protection Bureau (CFPB) issued a request for information on late and junk fees charged by banks and credit cards. The move is an effort to begin the process of designing protections for consumers in the credit and banking industries.

American banks have been closing branches in record numbers.Pickawood/Unsplash. The American banking system has been a major part of the U.S. economy. However, a record number of branches closed their doors last year. In 2021, nearly 4,000 retail units were closed, while 1,000 new openings. This brings it to a net of 2,927 branches being closed.

Birmingham-based Regions Bank announced this week it will soon eliminate non-sufficient funds fees and reduce overdraft charges. The move comes amid a flurry of banks taking steps to make banking more consumer friendly.

Truist Bank will gradually move away from accounts that charge fees for overdrafts or non-sufficient funds, reportsAmerican Banker. The launch of Truist One Banking — which is expected to take place this summer — is a major part of the Charlotte, North Carolina, company’s plan to overhaul its checking account program and expand access to mainstream financial services. The plan also includes the elimination of fees for non-sufficient funds, negative account balances and overdraft protection transfers. Older accounts that charge overdraft fees will gradually become a smaller part of the company’s deposit base.

Wells Fargo announced this week that it is eliminating non-sufficient funds fees and taking steps to reduce overdraft charges. The move comes as other major banks — including Bank of America and Capital One — take steps to reduce or eliminate overdraft charges.

Bank of America announced today it is significantly reducing overdraft fees and eliminating non-sufficient funds fees, with the reforms starting in February. “Over the last decade, we have made significant changes to our overdraft services and solutions, reducing clients’ reliance on overdraft, and providing resources to help clients manage their deposit accounts and overall finances responsibly,” said Holly O’Neill, President of Retail Banking, Bank of America. “Throughout the process we have engaged our National Community Advisory Council (NCAC) for their guidance and feedback on our changes. These latest steps will further support our clients and empower them to create long-term financial wellness.”