Details
Written by: RJ
Today, the Consumer Financial Protection Bureau (CFPB) ordered Bank of America to pay more than $100 million to customers for systematically double-dipping on fees imposed on customers with insufficient funds in their account, withholding reward bonuses explicitly promised to credit card customers, and misappropriating sensitive personal information to open accounts without customer knowledge or authorization.
The Office of the Comptroller of the Currency (OCC) also found that the bank’s double-dipping on fees was illegal. Bank of America will pay a total of $90 million in penalties to the CFPB and $60 million in penalties to the OCC.
“Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent,” said CFPB Director Rohit Chopra. “These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system.”
Thoughts
Amazing that this keeps happening. Glad to see rewards were also addressed in this judgement.
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Have heard DP’s saying that some of the card conversions when they discontinued and controverted when they offered $200 for $1,000 spend in three months did not pay out. On another note Brian Moynihan has gone to say he wants cashless which would let him and company be in control if your traction goes though and gather a cavalcade of data about your transactions. Next step is he probably would want to shed all the branches. Would post this on Google’s / Alphabet / Youtube however they on top of the pyramid with data with Facebook / Meta / Instagram very close to them. Even Apple has been found protecting you from Meta data collection and found collecting similar types of data on you for their own purposes.
Just around the net seems like they offered $200 for $1,000 spend conversion of that discontinued card that I seem to not recall at this moment did not pay out.
This from the CFPB seems ambiguous: “Withheld cash and points rewards on credit cards: To compete with other credit card companies, Bank of America targeted individuals with special offers of cash and points when signing up for a credit card. Bank of America illegally withheld promised credit card account bonuses, such as cash rewards or bonus points, to tens of thousands of consumers. The bank failed to honor rewards promises for consumers who submitted in-person or over-the-phone applications. The bank also denied sign-up bonuses to consumers due to the failure of Bank of America’s business processes and systems.”
That is why not a fanatic of saving cash back cards (and going too far on saving points on points / travel cards too!) points and encourage people to redeem early and often.