Back Of America Fines
Bank of America has been hit with a mountain of fines. The infractions involve illegal fees and opening accounts in customer's names without permission.
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00:00 (upbeat music)
00:02 Federal regulators say Bank of America harmed customers
00:07 by double dipping on fees,
00:09 withholding credit card rewards and opening fake accounts,
00:12 all of which are violations
00:13 of various consumer federal protection laws.
00:16 As a result, the Consumer Financial Protection Bureau
00:19 ordered Bank of America to pay more than $100 million
00:23 to customers and 90 million in penalties.
00:26 Federal officials also ordered Bank of America
00:29 to pay $60 million in fines.
00:31 Some of the charges are reminiscent
00:33 of the Wells Fargo scandal last decade.
00:35 Another way officials say Bank of America
00:38 was scamming customers
00:39 was with repeatedly charging $35 draft fees.
00:43 This would happen after a first transaction was declined
00:46 if a third party merchant resubmitted the charge
00:49 to the customer's account.
00:50 That point, the customer again would be hit
00:53 with either a $35 insufficient funds fee
00:56 or a $35 overdraft fee.
00:58 [MUSIC PLAYING]