Bank of America class action claims company opened unauthorized customer accounts

Bank of America class action overview: 

• Who: Plaintiff David Conaway filed a class action lawsuit against Bank of America.
• Why: Conaway filed the lawsuit over Bank of America accounts that were opened without the authorization of customers.
• Where: The Bank of America class action was filed in federal court in North Carolina.
• What are my options: Credit Karma offers banking options like checking and savings accounts and credit cards.

Plaintiff David Conaway filed a class action lawsuit against Bank of America regarding the company opening accounts for customers without their permission or authorization between Jan. 1, 2012, and July 31, 2023.

Bank of America created an incentive program related to creating accounts without customers’ consent in order to meet unreachable sales goals as employees boosted their evaluations, according to the Bank of America class action lawsuit.

“BoA engaged in and promoted a system of unfair, deceptive, illegal practices to maximize its performance and profits by generating and processing applications for and issuing accounts without class members’ knowledge or consent,” the Bank of America class action says. “Every time an unauthorized application was processed by BoA, without Plaintiff’s consent or knowledge, BoA’s practice was to obtain a credit report, which constituted a ‘hard inquiry’ that impacted consumer credit scores, often to their detriment.”

Management knew about Bank of America accounts scheme and did nothing to stop it, Bank of America class action claims

Bank of America knew about the numbers-inflating scheme and did nothing to stop it, the Bank of America class action claims.

The Bank of America accounts scheme then artificially boosted the banks’ account metrics and then collected fees related to those accounts for a period of more than 10 years, the Bank of America class action claims.

In July 2023, the Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay $90 million in CFPB penalties and $60 million in OCC penalties. According to the CFPB, Bank of America defrauded customers by opening unauthorized accounts on their behalf without consent.

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The plaintiff is represented by Lesley E. Weaver of Bleichmar Fonti and Auld LLP, Gary W. Jackson and Thomas M. Wilmoth of The Law Offices of James Scott Farrin and Steven A. Schwartz and Beena M. McDonald of Chimicles Schwartz Kriner and Donaldson-Smith LLP.

The Bank of America class action lawsuit is Conaway v. Bank of America, et al., Case No. 5:23-cv-00883, in the U.S. District Court for the Western District of North Carolina, Charlotte Division.

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