BofA to pay $10M fine tied to garnishment practices

Bank of America in Charlotte, N.C., will pay a $10 million fine to the Consumer Financial Protection Bureau to address how the bank processed garnishment notices. 

The CFPB said in a press release Wednesday disclosing the consent order that it determined that the $2.5 trillion-asset company “engaged in unfair and deceptive acts and practices in violation of the Consumer Financial Protection Act of 2010.” 

Specifically, the agency said BofA “unfairly required consumers to waive its liability as to consumers’ garnishment-related protections in its deposit agreement and misrepresented to consumers that they could not go to court to attempt to prevent wrongful garnishments. “

In addition to the fine, the consent order requires Bank of America to refund or cancel at least $592,000 in garnishment-related fees. BofA must also review and reform its system for processing garnishments, among other things.