Bank of America Faces Consent Orders from CFPB and OCC

Consumer Protection Bureau Imposes $10 Million Penalty, OCC Issues Cease and Desist Order

Consent Orders Stem from Alleged Violations of Consumer Protection Laws

The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) have each entered into consent orders with Bank of America, alleging violations of consumer protection laws. The CFPB has imposed a civil penalty of $10 million, while the OCC has issued a cease and desist order.

The CFPB alleges that Bank of America failed to properly disclose overdraft fees and created a misleading impression about the availability of overdraft protection. The OCC further alleges that the bank engaged in unfair and deceptive practices related to auto loans and credit cards.

In a statement, Bank of America said it "takes its regulatory responsibilities seriously" and is "committed to providing fair and transparent products and services to its customers." The bank has agreed to take steps to address the concerns raised by the regulators, including refunding overdraft fees and providing clearer disclosures.

Conclusion

The consent orders serve as a reminder of the importance of financial institutions adhering to consumer protection laws. Regulators are increasingly taking action against companies that engage in unfair or deceptive practices, and consumers are encouraged to report any concerns they may have to the appropriate authorities.