Bank of America fined $250M for 'junk fees' and opening fake accounts
The CFPB, which was formed in the wake of the 2008 financial crisis, has ordered Bank of America to pay more than $100 million to customers for “double-dipping” on fees imposed on those with insufficient funds in their accounts, in addition to other wrongdoings.Additionally, the firm must pay $90 million in penalties to the CFPB and $60 million to the Office of the Comptroller of the Currency.
Bank of America has a policy by which it charges customers a $35 fee if a transaction is declined because of insufficient funds in their account. The CFPB contends that Bank of America was allowing those fees to be repeatedly charged for the same transaction over a period of years, double dipping that generated “substantial revenue” for the firm.
The CFPB said that the bank failed to honor rewards promises for those who submitted applications in person or over the phone.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of America ordered to pay $250 mln for fake accounts, junk fees and withholding credit card rewardsThe Consumer Financial Protection Board (CFPB) said Tuesday that Bank of America Corp. to pay a total of $250 million for illegally charging junk fees,...
Read more »
Bank of America fined for junk fees, opening accounts without authorization, CFPB saysRegulators on Tuesday ordered Bank of America to pay more than $250 million for doubling up on customer fees, withholding reward bonuses for credit card customers and opening accounts without authorization, according to the Consumer Financial Protection Bureau.
Read more »
Bank of America ups price target on this little-known Inflation Reduction Act beneficiaryBank of America sees more upside in store for this under-the-radar beneficiary of reshoring trends and the latest government climate bill.
Read more »
Bank of America names American Express a top pick despite consumer headwindsBank of America is still bullish on American Express stock heading into second quarter earnings later this month.
Read more »
Bank of America to pay more than $100M for doubling fees, opening accounts without customer consentBank of America to pay $250 million for doubling fees, opening accounts without customer OK, federal agency says.
Read more »
Bank of America to pay more than $100M for doubling fees, opening accounts without customer consentBank of America is being ordered to pay more than $100 million to customers for double-dipping on some fees, withholding reward bonuses and opening some accounts without customer consent.
Read more »