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US banks to open ‘fake’ accounts

America’s fifth-largest commercial bank has been fined by the Consumer Financial Protection Bureau for illegally accessing consumer credit reports and opening accounts without their permission.

Bank of America, which is headquartered in Minneapolis and has assets of more than $559 billion, has pressured its employees to meet sales targets as part of their job requirements, providing give them incentives to sell bank products, the regulator said. To achieve those goals, bank employees illegally accessed credit reports and customers’ personal data to open accounts without permission, the investigation found.

CFBP on Thursday announced that it had fined Bank of America $37.5 million, following a five-year investigation.

CFPB Director Rohit Chopra said in a press release: “For more than a decade, Bank of America has known that its employees are taking advantage of its customers by hijacking consumer data to create fraudulent transactions. fictitious account.

In a statement to CNN Business, Bank of America said it had “made process and oversight improvements” since 2016 related to sales practice concerns. Now, employees only receive incentives for accounts where customers use the service.

Bank of America said in a statement on Saturday. “We’re happy to deal with this behind our backs.”

Bank of America has more than 2,800 branches throughout the United States.

CFBP said its investigation found evidence that the bank knew that their employees opened accounts without the customer’s permission and without measures to prevent and detect them. The agency added that the bank’s sales campaigns and compensation programs have rewarded employees who sell the bank’s products.

Regulators found that employee has opened a deposit account, credit card and credit line carry High interest rates and expensive fees have been passed on to customers.

“Bank of America’s conduct harmed its customers in the form of unwanted accounts, negatively impacted their credit records, and lost control of personally identifiable information,” CFBP said. said in its release, adding that customers were forced to close unauthorized accounts within their accounts. name and search for refunds yourself.

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