Bank of America fined $100 million for illegal practices, including ‘double-dipping’.

Bank of America Ordered to Pay Customers $100 Million for ‘Double-Dipping,’ Other Illegal Practices

Bank of America has been hit with a hefty financial penalty and fines totaling $150 million for engaging in deceptive practices that harmed its customers. This marks one of the largest penalties imposed on the bank in recent years.

The penalties include a reimbursement of $100 million to affected customers, as well as fines of $90 million to the Consumer Financial Protection Bureau (CFPB) and $60 million to the Office of the Comptroller of the Currency.

The CFPB Director, Rohit Chopra, stated that Bank of America wrongfully withheld credit card rewards, charged excessive overdraft fees, and opened accounts without customer consent. These practices are not only illegal but also erode customer trust.

Today, the CFPB ordered @BankofAmerica to pay more than $100 million to harmed customers for double-dipping on fees, wrongfully withholding credit card rewards, and opening accounts without consent. https://t.co/Ky44sKYADf

— consumerfinance.gov (@CFPB) July 11, 2023

Bank of America had a policy of charging customers $35 for declined transactions due to insufficient funds, according to the CFPB. The agency found that the bank engaged in “double-dipping” by repeatedly charging fees for the same transaction.

In recent years, Bank of America has been working to improve its reputation and shift its focus away from relying on overdraft fee income. The bank reduced its overdraft fee to $15 last year, resulting in a significant decrease in fee income.

The bank claimed to have voluntarily reduced overdraft fees and eliminated non-sufficient fund fees in the first half of last year. However, the CFPB discovered that Bank of America also unlawfully withheld promised credit card account bonuses and enrolled consumers in credit card accounts without their knowledge or authorization.

This is not the first time Bank of America has faced penalties for its practices. In 2014, the CFPB ordered the bank to pay $727 million for illegal credit card practices. Last year, the bank was fined $10 million for unlawful garnishments.

Bank of America’s reputation has taken a hit in recent years due to various illegal practices. The bank’s efforts to rebuild trust and focus on financial health have been overshadowed by these repeated violations. It remains to be seen how the bank will address these issues and regain the trust of its customers.

The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.

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