Federal regulators order Bank of America to pay $250 million for fake accounts, junk fees

The Consumer Financial Protection Bureau on Tuesday ordered Bank of America to pay more than $250 million, including fines and restitution to affected customers.

"Bank of America wrongfully withheld credit card rewards, double-dipped on fees, and opened accounts without consent," CFPB Director Rohit Chopra said. "These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system."

The bank must pay harmed consumers more than $100 million. The bank will also pay $90 million in penalties to the CFPB and $60 million to the Office of the Comptroller of the Currency. 

As part of the order, federal regulators are requiring Bank of America to stop opening accounts without authorization and to disclose limitations on reward card bonuses.

Bank of America said in a statement it had "voluntarily reduced overdraft fees and eliminated all non-sufficient fund fees in the first half of 2022. As a result of these industry leading changes, revenue from these fees has dropped more than 90 percent," according to Axios.

Madeleine Hubbard is an international correspondent for Just the News. Follow her on Twitter or Instagram.