Bank of America to pay $230M over junk fees, fake accounts
By 
Jeff Dale2023-07-11T18:01:00
Bank of America agreed to pay approximately $230 million to settle charges levied by the Consumer Financial Protection Bureau (CFPB) and Treasury Department’s Office of the Comptroller of the Currency (OCC) over alleged junk fees, withheld credit card rewards, and the opening of fake accounts.
Bank of America will pay approximately $80.4 million in consumer redress, $60 million to the CFPB for charging junk fees, $30 million to the CFPB for withholding rewards and opening unauthorized accounts, and another $60 million to the OCC regarding its double-dipping fee practices, the CFPB announced in a press release Tuesday.
The bank previously paid about $23 million to consumers who were denied rewards bonuses, the CFPB said.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
News BriefBank of America fined $12M over demographic data reporting lapses
Bank of America will pay a $12 million penalty for allegedly reporting false mortgage lending data to the federal government, under a settlement reached with the Consumer Financial Protection Bureau.
-
News BriefDiscover sued by investors over lax compliance procedures
Discover Financial Services faces a class-action lawsuit from investors alleging materially false and misleading statements regarding its business, operations, and compliance policies.
-
News BriefAmex banking unit fined $15M for poor third-party oversight
American Express National Bank agreed to pay a $15 million penalty levied by the Office of the Comptroller of the Currency for alleged oversight failings regarding a third-party affiliate and its efforts to retain small business customers.
More from Regulatory Enforcement
-
ArticleFrench investigators target anticompetitive practices in largest accounting firms
Major accountancy firms in France are under investigation for anti-competitive practices. The French competition watchdog embarked on a series of “unannounced inspections” and removed documents relating to audit and reporting on Jan. 13.
-
ArticleEU investigation into Grok may expose problems with DSA rather than compliance failings
The European Commission has launched a formal investigation against Elon Musk’s X under the Digital Services Act over fears that its AI tool Grok may be producing and disseminating illegal material.
-
ArticleFormer ADM execs inflated operating profits, SEC alleges
Three former executives at Archer-Daniels-Midland intentionally misled investors by inflating the performance of the company’s Nutrition unit, the U.S. Securities and Exchange Commission has alleged.