The nation’s second-largest bank, Bank of America, has been ordered to pay its customers more than $100 million. The move comes after federal regulators found that the bank illegally issued credit cards without customers’ consent for several years, withheld rewards, and double-charged non-sufficient funds penalties. The bank is also facing an additional $150 million in civil penalties. Read more about Bank of America 2024 Regulation Latest Update and various other things.
Bank of America Regulations 2024
- In July 2023, the Consumer Financial Protection Bureau (CFPB) revealed that Bank of America opened fictitious accounts, withheld credit card bonuses, and applied non-sufficient funds (NSF) penalties twice, among other illegal activities. Bank of America was fined $90 million in civil penalties by the CFPB. Additionally, the bank’s illegal practice of double-billing the Office of the Comptroller of the Currency (OCC) will result in fines totaling $60 million. The CFPB also ordered Bank of America to pay an additional $100 million to affected customers, bringing its total debt to $250 million.
- Bank of America has been investigated by the CFPB before. The bank was fined twice in 2022 by the government agency: first for illegally withdrawing money from accounts and then for improperly paying unemployment benefits amid the COVID-19 outbreak.
- Last year, Bank of America announced a reduction in overdraft rates and the elimination of non-sufficient funds fees. However, the CFPB found that while Bank of America still charged $35 for each non-sufficient funds fee, the bank often allowed the fee to be charged more than once for the same transaction, resulting in some customers being illegally double-charged. The bank also faces penalties for failing to honor promised credit card incentives and for using customers’ credit card information to open unauthorized accounts.
What is it about and what investigation is it?
For unethical behavior, including double-billing customers for insufficient cash, withholding incentives, and creating customer accounts without authorization, Bank of America was forced to pay more than $250 million in penalties to its customers. The Consumer Financial Protection Bureau (CFPB) investigation found that Bank of America exploited hundreds of thousands of customers over multiple years, across multiple product lines.
The OCC also ordered the bank to pay $60 million for violating overdraft fee regulations. According to the CFPB, the bank engaged in a “double-dipping scheme” to “collect unnecessary fees” from its customers. To do this, it repeatedly charged users $35 for the same transaction when they made excessive withdrawals from their accounts.
Bank of America 2024 Regulation Latest Update
- A federal court in North Carolina has approved an order that Bank of America agree to pay $8 million to settle a class-action lawsuit filed by customers who claimed the Charlotte, N.C.-based company charged fees to transfer money. According to the complaint, the plaintiffs with checking and savings accounts said they were deceived by the bank into paying fees to the Automated Clearing House. A national transaction processor called ACH.
- According to the complaint filed in April 2022 and revised in September 2023, account holders were charged an ACH transfer fee of $3 or $10 depending on the speed of delivery. Plaintiffs’ attorneys claimed the National Automated Clearing House Association offered a free option to complete the transactions. As detailed in the class action settlement, the transactions occurred between April 4, 2018, and November 17. A joint settlement website states that Bank of America has denied any wrongdoing or liability.
- However, in an effort to “avoid the costs, distractions and risks of litigation,” she decided to settle the case. An $8 million settlement fund will be established, with money going to the plaintiffs, their lawyers and administrative costs.
Bank of America Penalty Amount – Eligibility
According to the latest update, Bank of America will have to pay a huge amount to the claimants. Eligibility for Bank of America 2024 Settlement. The federal government has fined Bank of America $250 million. Additionally, the amount customers affected by the illegal fees will receive will depend on their investment and the amount charged by the company.
As part of the mandatory reimbursement of citizens, Bank of America paid $80.5 million. The CFPB says the bank should pay an additional $25 million to customers involved in the other lawsuit over rogue credit card activity.
How to apply for this regulation?
The customer who wants to obtain the settlement of his claim can contest in court that he has been the victim of malicious behavior. When filing a claim for settlement, the customer is required to submit certain documents. It is necessary to upload his identity papers and personal information.
To verify the application, you will need account information, payment slips or proof of additional money you have paid to the bank. This is necessary because the applicant’s application is limited by the transaction history of bank statements.
Applicants must file their complaint in court and provide all the necessary documents to settle the case. The court will review each case and select the best users to move forward with. The refund process takes a long time as there are millions of users. Bank of America 2024 Settlement Amount will be disbursed soon.
Niamh Prescott has a degree in Mass Communication and an MBA in Finance. She has worked for two media companies and now runs her own media company.