Bank of America fined for consumer abuse, fake bills, fake charges

financial institution of Americathe second largest financial institution within the US by property, which lately has engaged in misleading practices which have damage a whole bunch of hundreds of shoppers, the Consumer Financial Protection Bureau stated Tuesday.

The financial institution charged a number of $35 overdraft charges for a similar transaction, didn’t problem rewards to bank card customers and registered prospects for card accounts with out their consent, the CFPB stated in a press release. rack.

Charlotte, North Carolina-based Financial institution of America was ordered to pay a complete of $150 million in fines to the CFPB and one other regulator, the Workplace of the Comptroller of the Foreign money. It additionally should pay roughly $80.4 million to prospects falsely charged falsely, along with the $23 million it has already paid to prospects who’ve been falsely denied card reissues.

“These practices are unlawful and undermine buyer confidence,” CFPB director Rohit Chopra stated within the press launch. “The CFPB will finish these practices all through the banking system.”

Financial institution of America spokesman Invoice Halldin stated in response that the lender “voluntarily lowered its overdraft charges and eradicated all non-sufficient fund charges within the first half of 2022,” leading to a lower in income from these charges by 90%.

The announcement Tuesday is the newest signal that a number of the practices enforced by the Wells Fargo The 2016 fraudulent account scandal was not restricted to that financial institution.

Regulators have penalized Wells Fargo for a gross sales tradition that led to the creation of three.5 million faux accounts. However different lenders have made comparable errors, included American financial institutionwho paid a $37.5 million advantageous final 12 months for posting unauthorized buyer accounts.