Bank of America
Flagged · AvoidOne of America's "Big Four" banks, serving tens of millions of retail customers, with a central role in the 2008 mortgage crisis and billions paid in settlements for predatory lending and securities fraud.
Last updated June 14, 2026
↓ Skip to 6 ethical alternativesReasons to avoid
Issues span:ConsumerEnvironment
- A federal jury found Bank of America's Countrywide subsidiary liable for deliberately selling toxic mortgage-backed securities to Fannie Mae and Freddie Mac before the 2008 financial crisis, causing over $1 billion in losses to U.S. taxpayers. The scheme, run under an internal program called the "Hustle," involved approving loans regardless of quality to boost volume and then passing the defective loans to government-backed entities.
- In August 2014, Bank of America paid $16.65 billion in the largest civil settlement in Department of Justice history, resolving claims that it and its subsidiaries knowingly sold investors mortgage-backed securities backed by defective loans in the run-up to the 2008 financial crisis. The settlement included $7 billion in direct relief to struggling homeowners and communities harmed by the bank's conduct.
- Bank of America ranked as one of the three largest global financiers of fossil fuel expansion in 2024, alongside JPMorgan Chase and Citigroup, according to the annual Banking on Climate Chaos report published by Rainforest Action Network and partner organizations. The bank increased its fossil fuel financing by more than $10 billion from 2023 to 2024, contributing to what researchers described as a dramatic global reversal of progress on climate-aligned banking.
- In July 2023, the CFPB ordered Bank of America to pay over $250 million after finding it double-charged insufficient funds fees, withheld promised credit card signup bonuses from tens of thousands of customers, and secretly opened credit card accounts without customers' knowledge or authorization. The CFPB called Bank of America a repeat offender, noting the bank had previously been fined $727 million for illegal credit card practices in 2014.
- In July 2022, regulators fined Bank of America $225 million after finding it had unlawfully frozen unemployment benefit accounts for thousands of California residents during the pandemic, using a faulty automated fraud filter instead of the legally required investigations. The bank then made it nearly impossible for affected customers to report errors or restore access to funds they urgently needed, redirecting them to a state agency it knew was already overwhelmed.
Ethical alternatives
Banking
Local Credit Unions
Member-owned, not-for-profit institutions with better rates and community focus.
📍 Local Business👥 Community Driven
Visit →
Climate First Bank
A B Corp and Fossil Free Certified bank offering checking and high-yield savings you can open online nationwide, with deposits kept out of fossil fuels.
✅ B-Corp
Visit →
Beneficial State Bank
B-Corp certified bank focused on social and environmental responsibility.
✅ B-Corp♻️ Sustainable
Visit →
Amalgamated Bank
Union-owned bank with strong commitment to social justice and sustainability.
✊ Unionized✊ Worker Owned
Visit →
Carver Federal Savings Bank
Oldest African American-operated bank in the U.S., serving underserved communities since 1948.
🖤 Black Owned👥 Community Driven
Visit →
As You Sow
A free nonprofit tool that screens any mutual fund, ETF, or 401k for fossil fuels, weapons, and other concerns, so you can see what your investments actually hold.
💚 Non-Profit📚 Free Resource
Visit →Common Questions
- Is Bank of America ethical?
- Bank of America paid $16.65 billion in 2014 in the largest civil settlement in DOJ history for selling investors defective mortgage-backed securities before the 2008 financial crisis. In 2023, the CFPB ordered it to pay over $250 million for double-charging fees, withholding credit card rewards, and opening fake accounts. The bank also ranked among the three largest global financiers of fossil fuel expansion in 2024.
- Why should I avoid Bank of America?
- Bank of America is a repeat offender on consumer protection, having been fined $727 million in 2014 and $250 million in 2023 for illegal credit card practices. It also froze thousands of California residents' unemployment accounts during the pandemic using a faulty fraud filter, resulting in a $225 million fine. Its deep fossil fuel financing ties make it one of the worst-ranked large banks on climate.
- What are the best ethical alternatives to Bank of America?
- Local credit unions are member-owned and not-for-profit, with better rates and lower fees. Amalgamated Bank is union-owned with a strong commitment to social justice. Beneficial State Bank is B Corp certified and focused on environmental and social responsibility.