Following a regulatory action by the Consumer Financial Protection Bureau (CFPB) against Bank of America (BOA) for violating federal financial product laws, BOA customers are poised to receive a portion of a substantial $100 million settlement. In addition to this settlement, BOA is also facing an extra $90 million fine designated for the CFPB victims relief fund.
The settlement is set to benefit eligible recipients, primarily those who have been overcharged due to BOA's contentious "double-dipping" charges related to insufficient funds. As part of this compensation, a significant amount of $80 million will be directly deposited into the accounts of current customers, while former customers can expect to receive their refunds via mail. BOA is taking proactive steps to address issues related to unfulfilled rewards and bonuses. Many customers who have been adversely affected by these shortcomings have already begun to receive their due compensation. To prevent similar issues in the future, the bank is committed to clarifying eligibility criteria for forthcoming offers and ensuring the accurate distribution of rewards.
One of the key concerns that emerged involved unauthorized credit card accounts opened by BOA employees, leading to unexpected fees and credit score complications for customers. In response, BOA has taken decisive action and ceased this practice. The bank is currently in the process of finalizing a comprehensive payment plan, pending approval from the CFPB by the conclusion of August.
For those encountering challenges with BOA or facing other financial issues, it is recommended that individuals first pursue direct resolution channels with Bank of America. In the event that matters remain unresolved, individuals have the option to report their concerns to the CFPB via phone or email, facilitating a thorough review and subsequent response. To submit by one, visit https://www.consumerfinance.gov/complaint/ or by phone, call (855) 411-CFPB (2372).
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