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Bank of America fined $150 million over customer deception
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Bank of America has been fined $150 million for engaging in deceptive practices that harmed hundreds of thousands of its customers.
The Consumer Financial Protection Bureau (CFPB) found the bank's dubious practices included charging customers multiple $35 overdraft fee charges for the same transaction.
The bank has also failed to issue proper rewards to credit card users and enrolled customers in card accounts without their consent.
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The fines must be paid to the CFPB and the Office of the Comptroller of the Currency.
The bank will also pay around $80.4 million to customers unfairly charged bogus fees, on top of the $23 million already paid to customers who were wrongly denied card awards.
CFPB Director Rohit Chopra said: “These practices are illegal and undermine customer trust.
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“The CFPB will be putting an end to these practices across the banking system.”
A bank spokesperson said the lender “voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022,” resulting in a 90 percent drop in revenue.
Wells Fargo was also charged for a similar lapse in 2016 when regulators exposed the fake accounts scandal.
Other lenders, including US Bank, also paid $37.5 million last year for putting customers into unauthorized accounts.
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