CFPB v. Bank of America, N.A.

Bank of America, N.A. allegedly engaged in unfair and deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010, according to CFPB. Bank of America unfairly required consumers to waive its liability as to consumers’ garnishment-related protections and misrepresented to consumers that they could not go to court to attempt to prevent wrongful garnishments. Bank of America also failed to disclose to courts in states that restricted the garnishment of out-of-state accounts that the garnishment notice pertained to bank accounts located out-of-state; and Bank of America froze accounts and sent funds to creditors even though prohibited by state law. Bank of America also in some instances applied the wrong state’s exemption laws and represented to consumers that their rights to have certain funds exempted from garnishment were governed by the law of the issuing state when in reality the consumer’s own state law applies.

Summary generated from official Consumer Financial Protection Bureau press release