Bank Of America Penalized For Charging Junk Fees, Opening Fake Accounts

Bank Of America Corporation BAC has been asked to pay $90 million in penalties to the Consumer Financial Protection Bureau (CFPB) for illegally charging junk fees, withholding credit card rewards, and opening fake accounts.

The bank will also pay $60 million in penalties to The Office of the Comptroller of the Currency (OCC).

"Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent," said CFPB Director Rohit Chopra. 

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The regulatory watchdog slammed BAC for deploying a double-dipping scheme to harvest junk fees and misusing sensitive customer information to open unauthorized accounts.

"These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system," Chopra added.

As of March 31, 2023, the bank had $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits, which makes it the second-largest bank in the U.S., CFPB said.

Overall, Bank of America will pay more than $100 million to harmed consumers and $150 million in penalties to CFPB and the Office of the Comptroller of the Currency. 

Price Action: BAC shares are trading higher by 0.61% to $28.83 on the last check Tuesday.