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USA. Bank of America will pay as much as $250 million in penalties for additional charges to customers

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Bank of America will pay $250 million in damages and fines. This is the result of claims from customers who alleged that the bank, among other things, charged them double fees and opened accounts for them without prior authorization. The breaches at the US’s second-largest bank affect hundreds of thousands of customers and date back in some cases to 2012, regulators say.

Bank of America will pay $100 million in compensation to affected consumers and another $150 million in penalties.

The BoF charged high fees for failed transactions

Previously, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) said the bank had breached a number of regulations starting in 2012.

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– These practices are illegal and undermine customer confidence. The CFPB will put an end to them throughout the banking system, said CFPB director Rohit Chopra. In the institution’s statements, it was reported that the bank imposed and collected as much as $35 in penalties for failing to complete a transaction due to lack of funds in the account. What’s more, Bank of America is also accused of double fees that were charged when a customer had insufficient funds in their account. Bank of America allowed multiple charges for the same transaction.

Customers also alleged that additional accounts were set up for their data. According to the CFPB, employees did so under pressure to achieve high sales results.

Bank of America branch in New YorkBrandonKleinPhoto/Shutterstock

The whole process was supposed to last at least from 2012. However, as the regulator adds, these accounts accounted for “a small percentage” of new accounts at the bank. According to the CFPB, he also failed to deliver on promises made to clients, including the payment of prizes and bonuses.

Bank of America defends that it voluntarily eliminated or lowered many of its bank fees last year.

This is not the first fines for the second largest bank in USA. BoF was fined $20 million in 2014 and had to pay customers more than $700 million for deceptive marketing and illegal charges related to its credit cards.

In turn, last year BoF was punished for inefficient distribution unemployment benefits and had to pay $225 million.

Main photo source: BrandonKleinPhoto/Shutterstock

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