The ex-employees provided some documentation for their claims, including internal bank memos showing a schedule of opportunities to solicit accounts among the crowds at Central American embassies and Latino community events. The documents also showed details of the sales goals pressed on branch employees.
Consumer advocate Fox was particularly critical of banks' practice of recording debits by order of magnitude, which half the country's leading banks do. Fox said the practice makes it more likely that even careful consumers will overdraw their account.
BofA defends the practice, saying it assures customers that their largest, most important payments have priority.
Fox said it's a tactic banks use to make sure their fee revenues remain high. She said consumers unwittingly and unfairly incur overdraft fees when using a debit card.
"People think that if they use their debit card, they will only spend money that they have in their accounts. But Bank of America and other big banks have found ways to turn your debit card into a credit instrument with which you can rack up extreme debt," she said.
For example, BofA permits a customer using a debit card to spend, say, $20 at a grocery store even if the bank account is depleted. Without informing the customer, the bank automatically imposes an overdraft fee of $35. An additional $35 fee is imposed less than a week later if the account is still out of balance.
These rates mean that consumers are in effect paying $70 for a $20 extension of credit at the grocery store, Fox said.
Pace said BofA offers overdraft protection and other services to "give our customers more control and flexibility to effectively manage their accounts and prevent fees."
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tom.hamburger@latimes.com
