Bank of America should pay greater than $100 million to clients for doubling up on some charges, withholding reward bonuses and opening accounts with out buyer consent.
Bank of America pays $90 million in penalties to its group and $60 million in penalties to the OCC, the Consumer Financial Protection Bureau mentioned Tuesday.
The Office of the Comptroller of the Currency discovered the financial institution’s double-dipping on charges was unlawful.
Bank of America, based mostly in Charlotte, North Carolina, serves 68 million individuals and small enterprise shoppers. The financial institution had $2.4 trillion in consolidated belongings and $1.9 trillion in home deposits as of March 31, making it the second-largest financial institution within the U.S.
The financial institution didn’t instantly reply to requests from The Associated Press for remark.
Bank of America had a coverage of charging clients $35 after the financial institution declined a transaction as a result of the shopper didn’t have sufficient funds of their account, the CFPB mentioned. The company decided that the financial institution double-dipped by permitting charges to be repeatedly charged for a similar transaction.
Bank of America additionally supplied individuals money rewards and bonus factors when signing up for a card, however the CFPB mentioned the financial institution illegally withheld promised bank card account bonuses.
Since a minimum of 2012, Bank of America staff illegally utilized for and enrolled customers in bank card accounts with out their information or authorization, the CFPB mentioned.
Wells Fargo has paid billions in fines after it was decided that the San Francisco financial institution opened thousands and thousands of unauthorized financial institution accounts with the intention to meet unrealistic gross sales targets.
“Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” mentioned CFPB Director Rohit Chopra mentioned in a ready assertion. “These practices are illegal and undermine customer trust.”
In 2014 the CFPB ordered Bank of America to pay $727 million for unlawful bank card practices. Last 12 months it was ordered to pay a $10 million civil penalty over illegal garnishments. Also in 2022, the CFPB and OCC fined Bank of America $225 million and required it to pay a whole lot of thousands and thousands of {dollars} in redress to customers for botched disbursement of state unemployment advantages on the top of the COVID-19 pandemic.
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