Bank of America Fined $225 Mn for ‘Botching’ US Covid-19 Aid Payments

Two US agencies fined Bank of America a total of $225 million on charges it wrongfully froze unemployment and other public benefit programs at the height of the Covid-19 pandemic.

The Consumer Financial Protection Bureau imposed a $100 million penalty on Bank of America (BofA) for “botching” the disbursement of state unemployment programs during Covid-19, the agency said.

“Bank of America (BofA) automatically and unlawfully froze people’s accounts with a faulty fraud detection program, and then gave them little recourse when there was, in fact, no fraud,” the agency said in a news release.

The Office of the Comptroller of the Currency fined BofA $125 million for “violations of law and unsafe or unsound practices” in the bank’s administration of public benefits programs.

The agencies also required the US bank to provide payments to those wrongfully deprived payments.

Source: Bank of America Fined $225 Mn for ‘Botching’ US Covid-19 Aid Payments