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Unauthorized Accounts

All articles tagged with #unauthorized accounts

finance2 years ago•3 min saved

Bank of America Faces Massive Reimbursement for Fake Accounts and Double-Dipping Fees

Bank of America has agreed to reimburse customers over $100 million and pay $150 million in fines for engaging in deceptive practices, including "double-dipping" on overdraft fees, withholding credit card reward bonuses, and opening accounts without customer consent. The penalties, one of the largest in recent years, were imposed by the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC). The CFPB has been targeting "junk fees" and has focused on banks under the Biden administration. Bank of America has already taken steps to reduce its reliance on overdraft fee revenue and has voluntarily reduced overdraft fees. This is not the first time the bank has faced penalties for illegal practices.

via Fortune|

#bank-of-america #consumer-financial-protection-bureau #credit-card-rewards

bankingfinancial-fraud2 years ago•2 min saved

Bank of America Faces Massive Reimbursement Orders for Unauthorized Credit Cards and Fake Accounts

Bank of America has been ordered to pay $250 million in penalties by the Consumer Financial Protection Bureau (CFPB) for secretly opening credit card accounts without customers' consent. Bank employees used consumers' credit reports to submit bogus applications, resulting in unjustified fees, negative credit profiles, and wasted time for affected customers. The CFPB also accused the bank of withholding rewards, charging multiple fees for declined transactions, and unlawfully garnishing wages in separate cases. This is reminiscent of the Wells Fargo scandal in 2016, where the bank was fined for secretly issuing credit cards to customers without their knowledge.

via Business Insider|

#bank-of-america #bankingfinancial-fraud #cfpb

finance2 years ago•5 min saved

Bank of America Hit with $250 Million Fine for Fake Accounts and Illegal Fees

Bank of America has been fined $150 million and ordered to reimburse customers $100 million by the Consumer Financial Protection Bureau (CFPB) for engaging in illegal practices that include withholding credit card rewards, double-dipping on fees, and opening unauthorized accounts without customer consent. The bank has stopped some of these practices and will reimburse affected customers. The CFPB aims to end such practices across the banking system and has been cracking down on hidden fees and harmful financial practices. Consumer advocates have applauded the regulatory action against Bank of America.

via Detroit Free Press|

#bank-of-america #consumer-financial-protection-bureau #credit-card-rewards

business2 years ago•3 min saved

Bank of America Slapped with $250 Million Fine for Fake Accounts and Junk Fees

Bank of America has been fined $150 million by federal regulators for charging customers "junk fees," including double-charging overdraft fees, withholding card perks, and opening unauthorized accounts. The bank will repay over $80 million to affected customers and compensate those who had cards opened in their names without consent. These practices were uncovered during an industrywide examination of fees ordered by President Biden. Bank of America ended these practices in 2021 and 2022.

via The New York Times|

#bank-of-america #business #fines

financial-regulation2 years ago•5 min saved

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).

via Consumer Financial Protection Bureau|

#bank-of-america #consumer-financial-protection-bureau #credit-card-rewards