Bank of America Fined $30 Million for Unsound Practices
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robwilson39/iStock Editorial/Thinkstock(WASHINGTON) — A government watchdog announced a $30 million penalty being leveled against Bank of America on Friday for allegedly unsound practices linked to the bank’s non-home loans and debt collection.
The Office of the Comptroller of the Currency announced the penalty in a press release, adding that it ordered remediation to 73,000 impacted customer accounts. “The OCC took the actions against the bank for violations of law and unsafe or unsound practices in connection with the bank’s non-home loan compliance with the Servicemembers Civil Relief Act and unsafe or unsound practices in connection with non-home debt collection litigation practices,” the release read.
In a statement, Bank of America Global Corporate Social Responsibility and Consumer Policy Executive Andrew Plepler said that the bank has “taken significant steps over the last several years, and will take further steps now to ensure we have the right controls and processes in place to meet — and exceed — what is required by law and what our military customers deserve and expect.”
The OCC’s claim stated that Bank of America violated a law designed to ease financial pressures on military members. The law, the New York Times says, limits interest rates that banks can charge deployed military members.
The OCC also determined that Bank of America used improper practices in debt collection involving both military members and civilians.
Bank of America said that the issues touched just “a small percentage of credit and deposit overdraft customers who defaulted on their account” and that they have been working to remedy the issue since 2011.
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