July 12, 2023

Bank of America ordered to pay over $250 million

CFPBThe CFPB Tuesday ordered Bank of America to pay over $100 million to customers for “systematically double-dipping on fees imposed on customers with insufficient funds in their account, withholding reward bonuses explicitly promised to credit card customers, and misappropriating sensitive personal information to open accounts without customer knowledge or authorization.” The announcement also noted that Bank of America will pay two separate penalties: $90 million to the CFPB and $60 million to the Office of the Comptroller of the Currency (OCC).

The CFPB claimed that the bank violated the Consumer Financial Protection Act, Fair Credit Reporting Act, and Truth in Lending Act. In addition to the penalties and consumer redress, the bureau ordered Bank of America to stop its repeat offenses, including opening unauthorized accounts and charging repeat non-sufficient funds fees.

In 2014, the CFPB ordered Bank of America to pay consumers $727 million for “illegal credit card practices.” The bureau also levied over $200 million in penalties for illegal garnishments and “botched disbursement of state unemployment benefits at the height of the COVID-19 pandemic” in 2022. According to Reuters, Bank of America amassed $1.2 billion in penalties and settlements last year.

NAFCU will continue to monitor CFPB enforcement actions and update credit unions via NAFCU Today.