Bank of America, the second-largest bank in the United States, is facing allegations of deceptive practices from the Consumer Financial Protection Bureau (CFPB). The CFPB claims that the bank has harmed numerous customers by imposing multiple $35 overdraft fees for a single transaction, mishandling credit card rewards, and enrolling customers in card accounts without their consent. In response, Bank of America has been ordered to pay a total of $150 million in penalties to the CFPB and the Office of the Comptroller of the Currency. Additionally, the bank is obligated to compensate affected customers with approximately $80.4 million for unjustified fees.
Rohit Chopra, the Director of the CFPB, emphasizes the illegal nature of these practices and expresses the CFPB’s commitment to eradicating such misconduct from the banking system. Bank of America’s spokesperson, Bill Halldin, acknowledges the bank’s voluntary reduction of overdraft fees and elimination of non-sufficient fund fees, resulting in a significant 90% decrease in revenue from these fees.
