Bank of America harmed hundreds of thousands of customers, a federal agency said.
Bank of America was ordered to pay more than $100 million to customers for double-charging accounts with insufficient funds, denying reward payments to credit card holders and using personal data to open accounts without a client’s knowledge, the Consumer Financial Protection Bureau said on Tuesday.
The second-largest U.S. bank harmed hundreds of thousands of customers over a period of several years and across multiple products, the federal agency said.
In addition to the customer payment, the bank must pay $150 million in penalties, the agency added.
“Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” Rohit Chopra, director of the CFPB, said in a statement.
“These practices are illegal and undermine customer trust,” Chopra added. “The CFPB will be putting an end to these practices across the banking system.
