Bankingfinancial Fraud News

Bank of America Faces Massive Reimbursement Orders for Unauthorized Credit Cards and Fake Accounts

Bank of America has been ordered to pay $250 million in penalties by the Consumer Financial Protection Bureau (CFPB) for secretly opening credit card accounts without customers' consent. Bank employees used consumers' credit reports to submit bogus applications, resulting in unjustified fees, negative credit profiles, and wasted time for affected customers. The CFPB also accused the bank of withholding rewards, charging multiple fees for declined transactions, and unlawfully garnishing wages in separate cases. This is reminiscent of the Wells Fargo scandal in 2016, where the bank was fined for secretly issuing credit cards to customers without their knowledge.