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Looks like Bank of America will be paying big time to customers for shady business.
As reported by ABC11, the Charlotte-based bank must pay over $100 million to customers for doubling up on fees, withholding reward bonuses, and opening accounts without consent.
Not only that, but the bank will have to pay $90 million in organization penalties and $60 million in penalties to the Office of the Comptroller of the Currency (OCC), which found the bank’s double-dipping was illegal.
Bank of America, which serves 68 million people and small business clients, is the second-largest bank in the country, with $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits.
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The Consumer Financial Protection Bureau (CFPB) announced on Tuesday that Bank of America were doing a few illegal things, including:
- Repeatedly charging $35 fees for insufficient funds for one transaction
- Illegally withholding promised bonus points and cash rewards for signing up for a card
- Illegally applying for and enrolling consumers in credit card accounts without their knowledge or authorization since 2012
CFPB Director Rohit Chopra confirmed the info in a statement, saying “These practices are illegal and undermine customer trust.”
The crazy part is that Bank of America has been in trouble for illegal practices before.
In 2014, the bank was ordered to pay $727 million for illegal credit practices. Last year, it was ordered to pay a $10 million civil penalty over unlawful garnishments. It was also fined $225 million and was required to pay hundreds of millions in redress to consumers for botched disbursement of unemployment benefits during the pandemic.
Bank of America To Pay $250M+ For Illegal Practices was originally published on foxync.com
