CFPB takes action against Bank of America

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.

 

continue reading »