Bank of America is being fined millions of dollars by the Consumer Financial Protection Bureau (CFPB).
According to a statement released by the CFPB Tuesday, Bank of America is being held liable for allegedly “Illegally Charging Junk Fees, Withholding Credit Card Rewards, and Opening Fake Accounts.”
The customers involved will receive $100 million in damages for being double charged banking fees, denied rewards bonuses, and having their personal information misappropriated by Bank of America to open accounts without their knowledge.
Bank of America was charging $35 overdraft fees for multiple transactions. They have also been found withholding special bonuses promised to credit card holders.
In addition, since 2012, Bank of America employees have illegally applied for credit cards under customer names without authorization in order to reach sales-based incentives and goals, which have now been disbanded.
CFPB Director Rohit Chopra said: “Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent. These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system.”
The bank is also ordered to pay $90 million in penalties to the CFPB, as well as $60 million to the Office of the Comptroller of the Currency (OCC).
This has caused Bank of America to trend on Twitter.
BREAKING – YOUR REACTION: Bank of America accused of opening fake accounts and charging illegal junk fees. Federal regulators slam the bank for double-dipping on fees, withholding rewards, and opening fraudulent accounts. The Consumer Financial Protection Bureau orders $100M in… pic.twitter.com/U55X1uyi5e
— Simon Ateba (@simonateba) July 11, 2023
Chief White House Correspondent Simon Ateba posted the news and wrote, “Shades of the Wells Fargo scandal resurface.”
Let this sink in for a minute:
— Aaron Black (@ABlackPolitical) July 11, 2023
Bank of America got caught opening credit card accounts for customers who did not authorize them to open these accounts and nobody is going to jail.
Who else has a problem with this?
Senior Political Advisor Aaron Black responded, “Bank of America got caught opening credit card accounts for customers who did not authorize them to open these accounts and nobody is going to jail. Who else has a problem with this?”
Bank of America had net income of 27 billion in 2022 and the penalties and fines of for doubling dipping fees, opening fake accounts, and withholding credit card rewards: 150 million. That is .55% of their net income. That is not even a slap on the wrist.
— Troy Richison (@troyrichison) July 11, 2023
User Troy Richison compared Bank of America’s multi-billion dollar income with these penalties. He wrote, “That is .55% of their net income. That is not even a slap on the wrist.”