More than 100,000 people will be compensated for the bank's faulty fraud detection program, which froze customer accounts.
Regulators are fining Bank of America $225 million for bungling the distribution of unemployment benefits amid the pandemic, and are ordering the bank to compensate more than 100,000 people in a dozen states as a result.
At issue: programs administered by Bank of America that largely used prepaid cards akin to a debit card on behalf of 12 states: Arizona, California, Iowa, Kansas, Kentucky, Massachusetts, Maryland, Michigan, New Jersey, Nevada, North Carolina and South Carolina, according to the OCC. Beyond the fines, Bank of America will have to reimburse consumers the money that was withheld from them as well as a"consequential harm" payment, according to CFPB. Roughly 100,000 cardholders were impacted, and the compensation would total"hundreds of millions of dollars," a spokesperson stated in an email.
In an emailed statement to CBS MoneyWatch, a Bank of America spokesperson noted that in 2020 and 2021 state systems were overwhelmed with fraudulent claims, as"the pandemic created unprecedented criminal activity where illegal applicants were able to get states to approve tens of billions of dollars in payments."
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Delta to announce deal for 100 Boeing MAX 10 planesDelta Air Lines will announce a deal for 100 Boeing MAX 10 jets worth around $13.5 billion at list prices at the Farnborough air show on Monday, sources familiar with the matter told Reuters on Sunday.
Read more »
Who's the heir apparent to Usain Bolt in the 100 meters?An unpredictable crop of contenders vie for the the throne of track's marquee event
Read more »
Seattle struggles with police shortage after 'defund' movement as 100 officers leave forceCrime is up nationwide, especially in major far-left cities like Seattle. Recruiting more officers in a post-defund the police environment proving difficult.
Read more »
UHP stops driver twice within minutes for speeding over 100 mphA Utah driver failed to learn their lesson after being stopped twice within 10 minutes for speeding over 100 miles per hour.
Read more »
Lightning-sparked Committee Fire burning east of Sedona on Munds Mountain burns 100 acresThe Committee Fire burning east of Sedona on Munds Mountain has burned at least 100 acres after about a day when it was first sparked by lightning, says officials with the Coconino National Forest.
Read more »
Olympic champion Jacobs pulls out of world 100 semisItalian Olympic 100m champion Lamont Jacobs said on Saturday he had withdrawn from the semi-finals of the event at the World Championships after continuing to struggle with a thigh injury.
Read more »