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Bank Of America To Shell Out Over $100 Million In Customer Restitution

July 12, 2023 | By Kali Girl

According to NBC News, Bank of America has been ordered to compensate its customers with a sum exceeding $100 million due to various wrongful practices, including imposing duplicate charges, withholding reward bonuses, and initiating unauthorized account openings.

The Consumer Financial Protection Bureau announced on Tuesday that Bank of America will be required to pay $90 million in restitution to affected customers and an additional $60 million in penalties to the Office of the Comptroller of the Currency (OCC).

The OCC determined that the bank’s practice of charging customers twice for certain fees was in violation of the law.

Headquartered in Charlotte, North Carolina, Bank of America serves 68 million individuals and small businesses with $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits as of March 31.

It is the second-largest bank in the U.S. According to the Consumer Financial Protection Bureau (CFPB), the bank charged customers $35 when a transaction was declined due to insufficient funds, and the CFPB found that the bank charged fees repeatedly for the same transaction, engaging in double-dipping.

Additionally, Bank of America unlawfully withheld credit card account bonuses that were promised to customers who signed up for their cards, as per the CFPB.

Bank of America employees unlawfully signed up customers for credit card accounts without permission since 2012, according to the CFPB.

“Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” said CFPB Director Rohit Chopra said in a prepared statement. “These practices are illegal and undermine customer trust.”

The bank has not responded to requests for comment.

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