Not the primary time: BofA has confronted criticism up to now for the way it dealt with pandemic aid.
- Final 12 months, the Shopper Monetary Safety Bureau (CFPB) fined BofA $100 million for alleged mishandling of California residents’ unemployment advantages throughout the pandemic.
- The CFPB alleged that BoA’s defective fraud detection program “routinely and unlawfully” froze buyer accounts. The regulator additionally claimed the financial institution didn’t supply clients any recourse, even when it didn’t detect fraud associated to their accounts.
The massive takeaway: The execution of PPP and different pandemic aid packages has been rife with hiccups.
Monetary establishments blame the sloppiness on the federal government, which rushed them to get the funds out as shortly as attainable, chopping down on the time they needed to run their normal checks. The federal government refutes that declare, saying FIs ought to have adopted all of their regular processes.
BofA will doubtless blame the complaints on the strain it confronted to maneuver shortly, and the federal government will doubtless deny the blame. But when the CFPB’s nice is any indication, the financial institution gained’t be capable to use its excuse as simply as it could suppose.
Supply By https://www.insiderintelligence.com/content material/bank-of-america-slapped-with-lawsuit-misleading-statements-about-ppp