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Bank of America agreed to part with a total of $250 million in fines and compensation Tuesday to settle claims it systematically double-charged customers fees, withheld promised credit card bonuses and opened fake accounts without customer authorization.
Reuters reports Bank of America agreed to pay $100 million in restitution to harmed consumers. A further $150 million in civil penalties will also be set aside after the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC) said the bank violated a number of laws beginning in 2012.
Bank of America, based in Charlotte, North Carolina, serves 68 million people and small business clients. The bank had $2.4 trillion in consolidated assets and $1.9 trillion in domestic deposits as of March 31, making it the second-largest bank in the U.S.
The institution had a policy of charging customers $35 after the bank declined a transaction because the customer did not have enough funds in their account, the CFPB said in its official statement.
