The US Consumer Financial Protection Bureau (CFPB) has fined Bank of America $150 million and ordered the bank to compensate affected consumers with over $100 million. The penalties are imposed on the bank for alleged illegal practices, including charging junk fees, withholding credit card rewards, and opening fake accounts.
Facts
- The CFPB has fined Bank of America $150 million and ordered the bank to pay $100 million to affected consumers for illegal practices.
- Bank of America allegedly harmed hundreds of thousands of consumers across multiple product lines and services over several years.
- The bank deployed a double-dipping scheme, repeatedly charging customers $35 fees for declined transactions.
- Bank of America withheld cash and points rewards on credit cards and denied sign-up bonuses to customers due to system failures.
- Employees of the bank allegedly enrolled consumers in credit card accounts without their knowledge or authorization and used customers’ credit reports without permission.
- The regulator has ordered the bank to cease repeat offenses, compensate affected consumers, and pay $90 million in penalties to the CFPB and $60 million to the Office of the Comptroller of the Currency (OCC) for double-dipping fees.
- Bank of America has previously been fined for illegal credit card practices in 2014 and faced penalties for unlawful garnishments and botched disbursement of unemployment benefits in 2022.
