The Consumer Financial Protection Bureau (CFPB) has issued a penalty to the Bank of America ordering them to pay more than $100 million for imposing double fees on customers with insufficient funds in their accounts, restricting reward payments to credit card customers, and opening accounts with a client's personal information without informing them.
The bank's double-dipping on fees was also illegal according to the Office of the Comptroller of the Currency (OCC)—with all the allegations placed on the Bank of America, it's expected that the bank will pay a total of $90 million due to the CFPB penalties and $60 million in OCC penalties.
Statement on the issue by CFPB: "Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent," said Consumer Financial Protection Bureau Director Rohit Chopra. "These are illegal practices that undermine customer trust." The CFPB will put a stop to these practices throughout the banking industry."
Bank of America (NYSE: BAC) is an international bank that serves a total of 68 million individuals including small businesses. The bank has $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits as of March 31, 2023, making it the second-largest bank in the United States.
In the past up till these sanctions, Bank of America has injured hundreds of thousands of customers across a variety of product lines and services. These are what the Bank of America has done in particular:
Read more: https://www.investingport.com/cfpb-orders-bank-of-america-to-pay-100-million-for-illegal-practices/