Bank of America in Charlotte, N.C., was fined $150 million by regulators based on claims it double charged overdraft fees, opened unauthorized card accounts, and withheld card-related bonuses from some customers.
The $2.4 trillion-asset company will pay $90 million in penalties to the Consumer Financial Protection Bureau and $60 million to the Office of the Comptroller of the Currency. It will also pay more than $80 million to customers.
The regulators alleged that some BofA customers paid $35 in overdraft fees multiple times on a single transaction tied to accounts with insufficient funds. The agencies said that the bank ended its practices in 2021 and 2022.
“Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” CFPB Director Rohit Chopra said in a press release. “These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system.”
BofA has paid several penalties tied to account issues.
The company paid $727 million in 2014 to address certain credit card practices. Last year, it paid a $10 million civil penalty tied to unlawful garnishments and $225 million to address missteps in handling disbursements of state unemployment benefits.