Bank of America accused of opening credit cards without customer consent
Bank of America has been ordered to pay out $150m in penalties after it was found to have opened credit cards without customers' permission.
Customers were charged unjustified fees and "suffered negative effects to their credit profiles", said the CFPB. The lender said it has since ended charging the $35 fee for insufficient funds and reduced overdraft fees. "These practices are illegal and undermine customer trust. The CFPB will be putting an end to these practices across the banking system."
Under his direction, the CFPB increased its scrutiny of banks and their customer fees in 2022, soliciting complaints from consumers about practices such as overdraft fees.
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