Fake Bank of America Accounts Lead to Real Penalties from CFPB

  • The CFPB entered two consent orders against Bank of America, N.A. to resolve allegations that it violated the Truth in Lending Act (TILA), the Fair Credit Reporting Act (FCRA), and the Consumer Financial Protection Act of 2010 (CFPA) by double-charging fees, withholding credit card rewards, and opening unauthorized accounts.
  • According to the CFPB, the company allegedly double-charged fees when transactions were denied due to a lack of funds in consumers’ accounts; withheld rewards promised upon signing up for credit cards, such as cash rewards or bonus points; and misused sensitive customer information to enroll them in credit card accounts without their knowledge, leading to unjustified fees and changes to consumers’ credit reports.
  • The order regarding the allegedly false rewards promises and unauthorized accounts requires the company to pay a $30 million penalty, and the order regarding the double-dipping fees scheme requires it to pay a $60 million penalty and $80.4 million in consumer redress.