A guy strolls past an ATM exterior Bank of AmericaCorp head office in Charlotte, North Carolina, May 2, 2016.
Chris Keane|Bloomberg|Getty Images
Bank of America, the second-largest U.S. bank by properties, participated in misleading practices that harm numerous countless its consumers over the last few years, the Consumer Financial Protection Bureau stated Tuesday.
The bank charged several $35 overdraft charges for the exact same deal, stopped working to effectively release benefits to charge card users and registered consumers for card accounts without their approval, the CFPB stated in a declaration.
Charlotte, North Carolina- based Bank of America was bought to pay an overall of $150 million in charges to the CFPB and another regulator, the Office of the Comptroller of theCurrency It likewise needs to pay about $804 million to consumers who were unjustly charged phony charges, on top of the $23 million it currently paid to consumers who were incorrectly rejected card awards.
“These practices are illegal and undermine customer trust,” CFPB Director Rohit Chopra stated in the release. “The CFPB will be putting an end to these practices across the banking system.”
Bank of America representative Bill Halldin stated in a reaction the lending institution “voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022,” leading to a 90% drop in profits from those charges.
The statement Tuesday is the current indication that a few of the practices exposed by the Wells Fargo phony accounts scandal in 2016 weren’t restricted to that bank.
Regulators have actually penalized Wells Fargo for a sales culture that caused the development of 3.5 million phony accounts. But other loan providers have actually had comparable lapses, consisting of U.S. Bank, which paid a $375 million fine in 2015 for putting consumers into unapproved accounts.
