Bank of America Facing $250M Fine, Coinbase Customers Targeted?

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  • Bank of America agreed to pay fines and compensation totaling $250 million after allegations that the bank double-charged customers fees, failed to provide promised credit card benefits, and opened unauthorized accounts.
  • As part of the settlement, Bank of America will allocate $100 million towards restitution for affected consumers and pay $150 million in civil penalties.
  • The Consumer Financial Protection Bureau (CFPB) revealed that Bank of America neglected to fulfill its commitment to provide cash rewards and bonus points to tens of thousands of credit card holders.

Settlement Reached Between Bank of America & Regulators

On Tuesday, Bank of America ( BAC.N ) reached a settlement wherein they agreed to pay fines and compensation totaling $250 million. The settlement arises from allegations that the bank engaged in a systematic practice of double-charging customers fees, failing to provide promised credit card benefits, and opening unauthorized accounts. As part of the settlement, Bank of America will allocate $100 million towards restitution for affected consumers and pay $150 million in civil penalties.

Bank Of America Double Charging Customers Fees

The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) asserted that the bank violated various laws, which commenced in 2012. According to a statement by the CFPB , Bank of America generated substantial profits by imposing multiple fees on customers who lacked sufficient funds in their accounts. This practice reportedly occurred from February 2018 to February 2022. Regulators argued that consumers were unaware that each declined transaction would result in a $35 fee as such expectations were unreasonable and unclear. Bank of America responded with a statement revealing that it voluntarily eliminated or reduced various fees in the previous year. The CFPB has taken action against what it refers to as “junk fees” including overdraft and non-sufficient fund fees claiming that lenders unjustly charge customers for banking services.

Bank Of America Not Providing Cash Rewards & Bonus Points To Credit Card Holders

The CFPB revealed that Bank of America neglected to fulfill its commitment to provide cash rewards and bonus points to tens