Bank of America to improve compliance practices, pay $30 million fine to OCC

Bank of America Corp (BAC.N) agreed with U.S. regulators to improve its compliance practices and pay a fine for violations in lending rules toward military personnel.

The Office of the Comptroller of the Currency (OCC) asked the No. 2 U.S. bank by assets to pay a penalty of $30 million due to non-home loan compliance with the Servicemembers Civil Relief Act (SCRA) and unsafe non-home debt collection litigation practices.

The OCC, which regulates and supervises all national banks, also ordered "remediation" to about 73,000 affected customer accounts.

"The enforcement action is intended to correct deficiencies in the bank's practices and procedures related to its SCRA- compliance program," the OCC said on Friday.

The order covers collections litigation from several years ago for a small percentage of credit card and deposit overdraft customers who defaulted on their account, BofA said.

BofA shifted its compliance group to risk oversight group from the legal department earlier this year after regulators warned big banks to adopt more ethical internal cultures.

Tags
OCC, SCRA, BofA
Join the Discussion
Related Articles
More Home News
Eligible for Child Tax Credit & Social Security? Discover How to Receive Dual Benefits

Eligible for Child Tax Credit & Social Security? Discover How to Receive Dual Benefits

IRS Confirms $7,000 Earned Income Tax Credit for Millions of Americans - Check Your Refund This March!

IRS Confirms $7,000 Earned Income Tax Credit for Millions of Americans - Check Your Refund This March!

Maximize Home Sale Profit: Practical Tips to Lower Capital Gains Tax Obligations

Maximize Home Sale Profit: Practical Tips to Lower Capital Gains Tax Obligations

Front porch American flag

Homeownership Benefits for Veterans and Military Members

Real Time Analytics