Bank of America Ordered to Pay $250 Million for Illegal Fees and Accounts

Federal regulators have ordered Bank of America to pay $250 million in fines and restitution for a series of illegal practices, including double-dipping on fees, withholding credit card reward bonuses, and other consumer abuses. This landmark settlement highlights the importance of consumer protection and holds Bank of America accountable for its actions.

The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) jointly announced the order, detailing how Bank of America, the nation\'s second largest bank, engaged in practices that harmed its customers. Specifically, Federal regulators on Tuesday ordered Bank of America to pay $250 million in fines to settle claims that it double-dipped on fees, withheld credit card reward bonuses and engaged in other unfair practices. This resolution stems from investigations into multiple alleged violations.

Double-Dipping on Overdraft Fees

One of the most significant violations involved "double-dipping" on overdraft fees. As reported by NEW YORK (AP), Bank of America will reimburse customers more than $100 million and pay $150 million in fines for “double-dipping” on overdraft fees, withholding legitimately earned rewards, and other misdeeds. This practice meant that Bank of America was charging customers multiple insufficient fund fees for the same transaction. Bank of America, the nation\'s second largest bank, has been ordered to pay more than $100 million to customers for double charging insufficient fund fees, withholding legitimately earned rewards, and other issues.

Withheld Credit Card Rewards

In addition to the overdraft fee issue, The Consumer Financial Protection Bureau ordered Bank of America to pay over $250 million over allegations it opened fake accounts, withheld credit card rewards and engaged in other unfair practices. Customers were denied promised rewards, leading to further financial harm.

What This Means for Bank of America Customers

Bank of America will pay more than $100 million to harmed consumers. This restitution aims to compensate customers who were unfairly charged fees or denied rewards. If you believe you were affected by these practices, it\'s important to contact Bank of America and review your account statements. Federal regulators hit Bank of America BAC -0.87% with a significant penalty as a result of these findings.

This action sends a clear message that financial institutions must adhere to fair and transparent practices. Federal regulators found that the bank prioritized profits over ethical treatment of its customers. This settlement demonstrates the ongoing commitment to protecting consumers from unfair financial practices.