Connect with us

Hi, what are you looking for?

Business

Bank of America to pay more than $100 million for doubling fees, opening accounts without customer consent

Bank of America must pay more than $100 million to customers for doubling up on some fees, withholding reward bonuses and opening accounts without customer consent.

Bank of America will pay $90 million in penalties to its organization and $60 million in penalties to the OCC, the Consumer Financial Protection Bureau said Tuesday.

The Office of the Comptroller of the Currency found the bank’s double-dipping on fees was illegal.

A Bank of America branch in New York on April 10, 2020.Mark Kauzlarich / Bloomberg via Getty Images file

Bank of America, based in Charlotte, North Carolina, serves 68 million people and small business clients. The bank had $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits as of March 31, making it the second-largest bank in the U.S.

The bank did not immediately respond to requests from The Associated Press for comment.

Bank of America had a policy of charging customers $35 after the bank declined a transaction because the customer did not have enough funds in their account, the CFPB said. The agency determined that the bank double-dipped by allowing fees to be repeatedly charged for the same transaction.

Bank of America also offered people cash rewards and bonus points when signing up for a card, but the CFPB said the bank illegally withheld promised credit card account bonuses.

Since at least 2012, Bank of America employees illegally applied for and enrolled consumers in credit card accounts without their knowledge or authorization, the CFPB said.

Wells Fargo has paid billions in fines after it was determined that the San Francisco bank opened millions of unauthorized bank accounts in order to meet unrealistic sales goals.

“Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” said CFPB Director Rohit Chopra said in a prepared statement. “These practices are illegal and undermine customer trust.”

In 2014 the CFPB ordered Bank of America to pay $727 million for illegal credit card practices. Last year it was ordered to pay a $10 million civil penalty over unlawful garnishments. Also in 2022, the CFPB and OCC fined Bank of America $225 million and required it to pay hundreds of millions of dollars in redress to consumers for botched disbursement of state unemployment benefits at the height of the COVID-19 pandemic.

This post appeared first on NBC NEWS

    You May Also Like

    Sports

    Kyle Larson spent the week watching videos of his 10-win, 2021 championship season, he said, “to remind myself that I used to be good.”...

    Sports

    Jarrett Payton is looking for the heroes who saved his son’s life. The former Miami Hurricanes running back and son of Pro Football Hall of...

    Sports

    The Formula One season kicked off Sunday in Bahrain, and it was smooth sailing for Red Bull Racing and Max Verstappen. The 25-year-old Dutch star...

    Politics

    The three announced Republican 2024 presidential candidates weighed in over the weekend on the shocking collapse of Silicon Valley Bank (SVB). Former President Donald...

    Disclaimer: americanbrokersalliance.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 americanbrokersalliance.com | All Rights Reserved