Bank of America Is Fined $225 Million Over Pandemic Debit Cards

Two federal regulators fined Bank of America $225 million on Thursday for mishandling prepaid debit card accounts used by a dozen states to distribute unemployment benefits during the pandemic, and the bank must compensate people for damages, an amount likely to total hundreds of millions more, federal officials said.

Because of a faulty fraud detection program, Bank of America improperly froze accounts and stymied customers who sought to have them unlocked, cutting people off from desperately needed funds in 2020 and 2021, the Consumer Financial Protection Bureau said.