Bank of America Fined $250-M Over Fake Accounts, Illegal Fees

The Consumer Financial Protection Bureau (CFPB) ordered Bank of America (BOA) to pay more than $250 million over allegations it opened fake accounts, withheld credit card rewards and illegally charged junk fees, Ana Faguy reported for Forbes.

Photo Insert: Customers who did not have enough funds in their account would be charged a $35 fee if the bank had to decline a transaction according to BOA policy, but CFPB found the bank allowed those fees to be repeatedly charged for the same transaction.

CFPB ordered BOA to pay more than $100 million to customers for misappropriating sensitive personal information to open accounts without customer knowledge, the agency announced Tuesday.

It will also have to pay $90 million in penalties to the CFPB and $60 million in penalties to the Office of the Comptroller of the Currency for illegally double-dipping on fees imposed on customers with insufficient funds in their account.

Customers who did not have enough funds in their account would be charged a $35 fee if the bank had to decline a transaction according to BOA policy, but CFPB found the bank allowed those fees to be repeatedly charged for the same transaction, letting it generate “substantial additional revenue by illegally charging multiple $35 fees.”

The CFPB found special offers of cash and points when customers signed up for BOA credit cards were not honored for thousands of consumers.

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