Bank of America Problems in 2026

Frequently Asked Questions

What is the "Excessive Overdraft and Hidden Fee Practices" problem with Bank of America?

Bank of America has faced multiple lawsuits and regulatory actions over its overdraft fee practices. The bank charged $35 per overdraft transaction, and the way it ordered transactions from largest to smallest maximized the number of overdraft fees a customer would incur in a single day. A customer making five small purchases and one large purchase could be charged multiple overdraft fees instead of one. While the bank reduced its overdraft fee to $10 in 2022 after significant public pressure, the Consumer Financial Protection Bureau found that Bank of America collected billions in overdraft and insufficient funds fees over the prior decade. Low-income customers were disproportionately affected, with some accounts accumulating hundreds of dollars in fees on relatively small negative balances.

What is the "Unemployment Benefits Card Fraud Failures" problem with Bank of America?

During the COVID-19 pandemic, Bank of America administered unemployment benefits through prepaid debit cards for several states, including California's Employment Development Department. The system was plagued by massive fraud, with billions of dollars in benefits stolen by criminal networks. Simultaneously, legitimate claimants were locked out of their accounts by the bank's fraud detection systems, unable to access desperately needed funds. Thousands of Californians reported being unable to reach Bank of America customer service, waiting on hold for hours, and being hung up on. Some claimants went months without access to their benefits while experiencing homelessness and food insecurity. A California state audit found that Bank of America's fraud prevention systems were inadequate and that the bank prioritized processing volume over security.

What is the "Discriminatory Lending Practices" problem with Bank of America?

Bank of America has a documented history of discriminatory lending practices. In 2022, a fair lending investigation revealed that the bank's algorithm-driven lending decisions resulted in higher denial rates for Black and Hispanic mortgage applicants compared to white applicants with similar financial profiles. The Department of Justice previously reached a $335 million settlement with the bank over Countrywide Financial's discriminatory lending practices, which Bank of America inherited through acquisition. Investigations found that minority borrowers were steered toward higher-cost subprime mortgages even when they qualified for prime rates. Community advocacy groups have documented persistent disparities in Bank of America's lending patterns across major metropolitan areas, with branches in predominantly minority neighborhoods offering fewer loan products and less favorable terms.

What is the "Zelle Fraud Liability Disputes" problem with Bank of America?

Bank of America customers have reported significant losses through Zelle, the peer-to-peer payment platform integrated into the bank's mobile app. When customers fall victim to Zelle scams, including impersonation of bank representatives and fake purchase fraud, Bank of America has consistently denied reimbursement claims, arguing that because the customer authorized the transaction, even if under false pretenses, the bank bears no liability. Senate investigations found that Bank of America and other Zelle partner banks reimbursed only a fraction of fraud claims. Customers report that Bank of America's fraud department provides scripted responses refusing responsibility, and that the bank's Zelle integration lacks basic safety features like transaction delays or confirmation steps for large transfers that could prevent fraud.

What is the "Mobile App Glitches and Incorrect Balance Display" problem with Bank of America?

Bank of America's mobile banking app has experienced recurring technical issues that erode customer trust. Users have reported glitches where account balances display as zero or show incorrect amounts, causing panic and leading to declined transactions. In multiple incidents, the app showed deposits that had not actually cleared, leading customers to spend money they did not have and incurring overdraft charges. The app's bill pay feature has misdirected payments, and scheduled transfers have failed without notification. During system maintenance windows, which occur more frequently than competitors, customers lose access to all digital banking services. Two-factor authentication failures have locked customers out of accounts, and the recovery process requires visiting a physical branch, which is increasingly difficult as Bank of America has closed over 1,400 branches since 2010.