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July 11 (UPI) – The U.S. government has imposed penalties on Bank of America for excessive fees and withholding credit card bonuses. In response, the U.S. Consumer Financial Protection Bureau (CFPB) has ordered the bank to pay over $100 million to its customers for “double-dipping” on overdraft fees. It was discovered that the bank repeatedly imposed $35 charges for the same declined transaction due to insufficient funds.
Moreover, Bank of America has been penalized for not delivering promised bonuses to its credit card customers and for opening accounts without customer consent or knowledge, using their personal information.
“These practices are illegal and erode customer trust,” stated CFPB Director Rohit Chopra. “The CFPB will put an end to these practices throughout the banking system.”
Bank of America has not commented publicly on the charges. Last year, the company faced fines and penalties totaling $235 million from financial regulators, partly due to mishandling the distribution of state unemployment support during the COVID-19 pandemic.
These charges come after a series of executive actions by President Joe Biden aimed at curbing surprise fees and other charges. The administration has targeted various industries, including banking, hotels, concerts, tickets, airlines, cable, and the Internet, to address deceptive fees.
President Biden is also advocating for new limits on bank fees related to bounced checks and account overdrafts, which could save consumers over $5 billion annually.
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