Bank of America to pay $250M in fines, over junk fees, fake accounts fraud

(YAHOO NEWS) — Bank of America has been ordered to pay $250 million in fines and customer compensation for deceptive practices that harmed “hundreds of thousands of consumers,” according to the Consumer Financial Protection Bureau.

The federal regulator on Tuesday said the bank withheld credit card rewards, illegally double-dipped on fees and opened accounts without consent. It’s one of the highest financial penalties in years against the country’s second-largest bank, which was also ordered to pay a $10 million civil penalty over unlawful garnishments and $225 million in fines for “botched” state unemployment benefit disbursements in 2022.

The latest penalty includes $90 million to the CFPB and $60 million to the Office of the Comptroller of the Currency. The bank must also pay $80.4 million in consumer redress on top of the $23 million it had already paid to customers denied rewards bonuses.

Full story: https://news.yahoo.com/bank-america-pay-250m-fines-213832928.html