Bank Of America To Pay Over $200 Million For Illegal Practices, Undermining Customer Trust

The Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay more than $100 million today as punishment for opening consumer financial accounts without their permission, making false statements about certain credit cards rewards, and acquiring credit reports from their customers for dubious reasons, the CFPB announced Tuesday

WASHINGTON (UrduPoint News / Sputnik - 11th July, 2023) The Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay more than $100 million today as punishment for opening consumer financial accounts without their permission, making false statements about certain credit cards rewards, and acquiring credit reports from their customers for dubious reasons, the CFPB announced Tuesday.

"Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent. These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system," said Rohit Chopra, CFPB's Director.

Rohit said BOA "systematically" double-dipped on fees snatched from customers for having insufficient funds; withholding reward bonuses that were due to credit card customers; and stealing sensitive customer personal information to open accounts without customers' knowledge or approval.

"The Office of the Comptroller of the Currency (OCC) also found that the bank's double-dipping on fees was illegal. Bank of America will pay a total of $90 million in penalties to the CFPB and $60 million in penalties to the OCC," CFPB said in a statement.

Rohit said Bank of America harmed hundreds of thousands of its consumers in this scheme over several years "and across multiple product lines and services.

"

Bank of America is a serial violator, CFPB said.

"This is not the first enforcement action Bank of America has faced for illegal activity in its consumer business. In 2014, the CFPB ordered Bank of America to pay $727 million in redress to its victims for illegal credit card practices," agency officials said. "In May 2022, the CFPB ordered Bank of America to pay a $10 million civil penalty over unlawful garnishments and, later 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."

In addition to paying $90 million in penalties, Bank of America will also pay a $60 million penalty for charging "repeat non-sufficient funds fees," and a $30 million penalty for its credit card rewards practices and for opening unauthorized accounts. In a separate action, the bank will also pay a $60 million penalty for its double-dipping fee practices.

CFPB said the penalties will be deposited in the CFPB's Victims Relief Fund.�