Bank of America Paying Customers to Settle Consumer Practices

Bank of America has been paying customers to settle consumer practices, and it's a game-changer for those who have been taken advantage of.

The bank has been offering refunds to customers who were charged unnecessary fees on their accounts. This is a result of a settlement with the Office of the Comptroller of the Currency, which found that the bank had been engaging in unfair practices.

Some customers have reported receiving refunds of up to $1,000 or more. This is a significant amount of money for those who were struggling to make ends meet due to unnecessary fees.

The bank has also been working to improve its customer service and provide more transparency in its fee practices.

Related reading: Bank of America Customers Were Compromised by a Third-party Vendor.

Bank of America has agreed to pay back hundreds of thousands of customers after being accused of double-dipping on fees, withholding promised credit card rewards, and misappropriating customer information to open fake accounts.

The Consumer Financial Protection Bureau (CFPB) ordered the bank to pay more than $100 million to customers for allegedly charging fees repeatedly on the same transaction, failing to honor special offers and rewards, and enrolling consumers in credit cards without their knowledge or authorization.

The bank will identify and directly contact customers eligible for compensation, and will also deposit funds into customers' accounts or send them a check.

The CFPB estimates that the bank owes a total of approximately $80.4 billion for the double-dipping on fees.

Bank of America has already paid around $23 million to customers who were harmed by the withholding of credit card bonuses.

The bank was also ordered to pay $90 million in penalties to the CFPB and $60 million to the Office of the Comptroller of the Currency.

Here's a breakdown of the penalties:

The CFPB penalties will be deposited in the bureau's Civil Penalty Fund, which is used to compensate consumers who were harmed by a violation for which civil penalties were imposed, and who aren't otherwise expected to get full compensation for their compensable harm.

The bank's fine totals over $250 million, with $100 million going back to affected customers.

If you're owed money in the payout, the CFPB will contact you, likely by mail, with information about the payment and how to receive it.

Don't get too excited, as impostors and thieves may try to scam you by pretending to be bank employees or CFPB representatives.

You'll have two options to receive your payment: direct deposit or a check that will be mailed to you.

Consumers will likely see the money in May 2024, but only after Bank of America pays the federal government the $100 first.

Suggestion: Bank of America down Payment Grant

If you're owed money in the payout, the CFPB will contact you, likely by mail, with information about the payment and how to receive it.

You'll have two options: direct deposit or a check that will be mailed to you. Don't get so excited that you fall for a scam, as impostors and thieves may be pretending to be bank employees or CFPB representatives.

Bank of America has to pay the federal government the $100 million before the CFPB can pay you from the CPFB Civil Penalty Fund.

Consumers will likely see the money in May 2024.

If this caught your attention, see: How to Transfer Money from Bofa to Bofa

Some customers have already been compensated by the CFPB, although the amount wasn't specified.

Bank of America will automatically refund around $80.4 million in redress to people who were double-charged the $35 non-sufficient funds or overdraft fees since September 2018.

The bank will either put funds into their deposit accounts or mail checks to affected customers.

Discover more: Wells Fargo Customers Are Suing the Bank over a Scam

Some customers have already been compensated by Bank of America, according to the CFPB.

People who allegedly didn’t get the credit card reward bonuses they were owed have received compensation, but the CFPB didn't specify an amount.

Bank of America is automatically refunding around $80.4 million in redress to those who were double-charged the $35 non-sufficient funds or overdraft fees since September 2018.

The bank will put funds into their deposit accounts or mail checks to those who were affected.

Bank of America has been ordered to repay a significant amount to its customers, with a total of $250 million to be paid out. This includes $100 million in direct repayments to customers and an additional $150 million in fees.

The bank has been found to have violated several consumer protection laws, including the Truth in Lending Act, the Fair Credit Reporting Act, and the Consumer Financial Protection Act of 2010.

Bank of America has a history of alleged illegal activity, with two previous CFPB enforcements in 2014 and 2022. This latest incident marks the third time in a decade that the bank has been involved in such a situation.

The bank's actions included charging customers multiple times for insufficient funds fees, failing to honor credit card rewards bonuses, and opening accounts without customer consent.

Discover more: Commercial Banking vs Consumer Banking