CFPB Orders Bank of America to Pay $250 Million for Deceptive Practices
Bank of America to Pay Restitution and Penalty
The Consumer Financial Protection Bureau (CFPB) has ordered Bank of America to pay $250 million for deceptive practices related to its overdraft fees.
The CFPB found that Bank of America charged overdraft fees on debit card transactions even when customers had sufficient funds in their accounts. The bank also failed to adequately disclose its overdraft fee policies to customers.
Consumers Harmed by Deceptive Practices
"Bank of America's deceptive practices have harmed millions of consumers," said CFPB Director Rohit Chopra. "The bank has taken advantage of its customers, and we are holding it accountable for its wrongdoing."
Under the terms of the settlement, Bank of America will pay $100 million in restitution to harmed consumers and another $150 million in civil penalties.
The CFPB's action is the latest in a series of enforcement actions against banks for deceptive overdraft fee practices.
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