Bank of America has been penalized by the CFPB with a fine of $250 million for infractions such as denying customers promised cash rewards, double-charging them, and damaging their credit scores. Joseph Mackinnon reports for The Blaze:
Federal regulators are penalizing Bank of America to the tune of $250 million for allegedly taking advantage of customers.
The Consumer Financial Protection Bureau announced Tuesday that the bank will pay over $100 million to the consumers who were adversely impacted and another $150 million in penalties to the CFPB and the Office of the Comptroller of the Currency.
The bank has been accused of “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.”
CFPB director Rohit Chopra said in a statement, “These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system.”
The OCC similarly determined that the bank’s double-dipping on fees was illegal.
As a result, the bank is required to pay $90 million in penalties to the CFPB and another $60 million to the OCC.
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