Bank of America Faces CFPB Action for Fake Accounts, Junk Fees, and Credit Card Rewards Withholding

The Consumer Financial Protection Bureau (CFPB) has ordered Bank of America to pay over $100 million in penalties and redress to customers for illegally charging fees, withholding credit card rewards, and opening unauthorized accounts. Bank of America engaged in a double-dipping scheme, charging customers multiple fees for the same transaction, withheld promised credit card rewards, and misused customer information to open unauthorized accounts. This is not the first enforcement action against Bank of America for illegal practices. The CFPB's orders require the bank to stop these practices, compensate affected consumers, and pay penalties to the CFPB and the Office of the Comptroller of the Currency (OCC).