American commercial regulators has ordered Bank of America to pay out $150m in penalties after it was found to have opened credit cards without customers’ permission.
Although, Bank of America has not admitted or denied the investigation’s findings,
the bank has been ordered to refund customers and pay a total of $150m in penalties to the Consumer Financial Protection Bureau (CFPB) and Office of the Comptroller of the Currency (OCC).
Director at the CFPB Rohit Chopra, said Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent, describing the action as illegal and undermining customer trust.
Recall President Joe Biden had pledged to crack down on junk fees imposed by companies across a range of industries, including sales of concert tickets and airline flights.
He has urged Congress to outlaw certain charges, such as fees for quitting a mobile phone or pay TV service before the contract expires.
