CFPB v. Bank of America, N.A.

Bank of America, N.A. allegedly changed its practices for investigating prepaid debit cardholder notices of error to solely rely on an automated fraud filter, which it knew or should have known would incorrectly determine that no error had occurred and which led to its incorrectly freezing or blocking accounts. Bank of America allegedly engaged in unfair acts or practices by denying prepaid debit cardholders’ notices of error and freezing their prepaid debit card accounts based solely on the results of the Bank’s flawed fraud filter. The Bank also allegedly engaged in abusive acts or practices by retroactively applying its fraud filter to deny notices of error submitted by prepaid debit cardholders that it had previously investigated and paid. Further, Bank of America allegedly engaged in unfair acts and practices by impeding unemployment insurance benefit prepaid debit cardholders’ efforts to file notices of error concerning their prepaid debit card accounts. The Bank’s failure to conduct a reasonable investigation of prepaid debit cardholders’ notices of error and failure to timely investigate and resolve prepaid debit cardholders’ error claims also violated the Electronic Fund Transfer Act and its implementing Regulation E.

Summary generated from official Consumer Financial Protection Bureau press release