According to the Consumer Financial Protection Bureau, Bank of America engaged in dishonest business practises in recent years that harmed hundreds of thousands of its clients.
The bank improperly issued rewards to credit card users and registered clients up for card accounts without their authorization, according to the Consumer Financial Protection Bureau (CFPB). The bank also charged numerous $35 overdraft fees for the same transaction.
Wrongly Refused Cards Awards
In addition to the $23 million previously paid to customers who were wrongfully refused card awards, the corporation must now pay $150 million in fines and around $80.4 million to customers who were wrongfully charged fake fees.
The Consumer Financial Protection Bureau reported on Tuesday that Bank of America, the second-largest U.S. bank by assets, engaged in dishonest business practises that harmed hundreds of thousands of its clients.
The bank improperly issued rewards to credit card users and registered clients up for card accounts without their authorization, according to the Consumer Financial Protection Bureau (CFPB). The bank also charged numerous $35 overdraft fees for the same transaction.
Fined With $150 Million
Source: cbs news
Based in Charlotte, North Carolina The CFPB and another agency, the Office of the Comptroller of the Currency, each received a $150 million fine from Bank of America. In addition to the $23 million it has already paid to customers, it must also pay around $80.4 million to those who were wrongfully charged erroneous fees.
Director of the CFPB Rohit Chopra stated in the statement that “These practises are illegal and erode customer trust.” “The CFPB will stop these practises throughout the banking system,”
The company “voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022,” according to Bank of America spokesman Bill Halldin, resulting in a 90% drop in those fees’ earnings.
The revelation on Tuesday is the most recent evidence that some of the methods made public by the Wells Fargo phoney account crisis in 2016 weren’t exclusive to that institution.
Wells Fargo has been penalised by regulators for a sales culture that encouraged the establishment of 3.5 million fictitious accounts. However, identical errors have also been made by other lenders, such as U.S. Bank, which paid $37.5 for marking customers in unauthorized accounts.