Bank Of America Ordered To Pay $250M For ‘Double-Dipping’ & ‘Illegally’ Making Fake Accounts
Written by 1.02010 on July 12, 2023
It looks like Bank of America (BoA) is on the hook for over $250M, as the corporation has been accused of “double-dipping on fees” and opening fraudulent accounts!
The Consumer Financial Protection Bureau (CFPB) announced the news in a statement released on Tuesday (Jul. 11).
Within the press release, the CFPB “ordered Bank of America to pay more than $100 million to customers.” The basis of this order was rooted in BoA “systematically double-dipping on fees imposed on customers with insufficient funds.”
Additionally, the bank was accused of skimping credit card holders on reward bonuses while “open[ing] accounts without customer knowledge or authorization.” Oop!
As a result, CFBP Director Rohit Chopra slammed BoA’s practices as “illegal” and declared that they “undermine customer trust.”
“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.”
On top of having to pay customers over $100M in redress, BoA was also ordered to pay $90M in fines to the CFPB.
Furthermore, due to the “double-dipping,” BoA must pay $60M to the Office of the Comptroller of the Currency (OCC). All in all, this will run BoA upwards of $250M.
