Anti-Consumer Practices Charged to Bank of America

Unfair Bank Practices Accusations

Summary: People claiming to be Bank of America’s former employees have alleged that their supervisors forced them to fatten paychecks and bank’s earning of senior executives, burden customer with needles fees and debts, and threatened them if they complained. On the other hand, some of them said that their salaries are too low and they need to hit their quotas to earn the bonuses.

As part of Obama administration’s overhaul on financial regulation, a whistleblowing campaign was announced as U.S. Treasury Department unveiled a legislation that will create an agency for consumer financial protection.

Former employees of Bank of America accused their supervisors of driving them to sell while burdening customers with debts and fees. “This is the information that needs to get out,” said Keith Ellison, a Minnesota Democrat representative who sits on House Financial Services Committee. “We’re not doing the right things to manage risk properly. Without a strong law on whistleblowing, lending standards may be compromised,” he added.

The groups conducting this campaign include U.S. Public Interest Research Group, National Association of Consumer Advocates, and Service Employees International Union (who’s trying to organize the workers of Bank of America).

Spokeswoman for the bank, Anne Pace, denied the allegations. She said that the union misrepresented the relationship of the largest bank in the U.S. with its associates and customers.

Further, she said that Bank of America is “pro-associate. It believes that their managers are well-equipped to respond to their associates needs. Moreover, she declared that all their customer fees are “predictable and transparent.”

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Anti-Consumer Practices Charged to Bank of America

Unfair Bank Practices Accusations

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