One of the largest banks in the United States has been hit with hundreds of millions in fines for several illegal practices including opening fake credit card accounts without customers’ consent.
The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) have ordered Bank of American to pay $250 million or more in penalties and to consumers harmed by the bank’s actions.
According to ConsumerFinance.Org, Bank of America was penalized for:
- Illegal Credit Card Accounts:
- Bank of America opened credit card accounts for customers without their knowledge or authorization. The bank illegally pulled credit reports, and completed applications on customers ‘behalf.’ The CFPB and OCC investigation revealed that this practice went back as far as 2012 and has affected hundreds of thousands of Bank of America customers.
- Double-dipping Transaction Fees:
- The bank was also fined for charging customers twice for declined transactions. That is, when a transaction was declined, a $35 fee was initially charged. However, the bank charged an additional $35 at a later date for the same declined transaction.
- Withholding promised bonuses and cash rewards:
- The CFPB and OCC have also fined the bank for withholding bonuses and cash rewards to credit card holders that were promised to them.
Bank of America is the second largest financial institution in the country with 68 million customers, both individuals and small businesses and, as of 2023, with over $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits.
If you are a current or past Bank of America Customer and have been harmed by the actions listed above, please contact us to discuss your legal options at (619) 238-1811.
