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US Consumer Financial Protection Bureau fines Bank of America $10m for illegal garnishments

May 12, 2022


The CFPB says BofA unlawfully froze customer accounts, charged garnishment fees and “sent payments to creditors based on out-of-state garnishment court orders that should have been processed under the laws and protections of the states where the consumers lived”.

Garnishments are a way for creditors to claw back debt through automatic, usually court ordered, collections against an individual’s pay or account balance.

The CFPB also alleges BofA inserted unfair and unenforceable language into customer contracts that limited their rights to challenge the aforementioned garnishments.

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