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Bank of America Fined $225 Million for Deceptive Practices in Card Program

  • Regulators accused bank of consumer harm, violations of law
  • Company says it partnered with states to help identify fraud
A Bank of America branch in New York.

A Bank of America branch in New York.

Photographer: Victor J. Blue/Bloomberg
Updated on

Bank of America Corp. was fined $225 million by regulators for unfair and deceptive practices related to a prepaid card program to distribute unemployment insurance and other public-benefit payments amid the pandemic.

The Office of the Comptroller of the Currency ordered the bank to pay $125 million and provide remediation to consumers that were harmed by the practices, according to a statement from the regulator on Thursday. The card program served 12 states including California and New Jersey.