The action was taken in response to findings that the bank had broken customer-centric policies by the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC).
As of March 31, 2023, Bank of America had 68 million clients and, based on its reported resources at the time, was the second-largest bank in the United States.
Beginning in 2012, the CFPB discovered that Bank of America had broken several regulations set up to safeguard customers from unfair financial services.
It was discovered that Bank of America’s violations of these rules had a severe impact on its customers’ financial situation, including lowering their credit scores and placing them at risk of receiving incorrect fines.
This most recent fine and payment comes after the bank received 3 prior financial penalties for related offenses.
The CFPB ruled the bank to reimburse clients 727 million in 2014 for engaging in “illegal credit card practices.”