Have you ever been a victim of unethical behavior at a bank? If not, this article will demonstrate how Bank of America tricked customers into opening bogus accounts. Thus, this prompts unnecessary expenses and damages to financial assessments. You can try and qualify for a part of the $100+ million compensation store. Therefore, let us reveal the reality behind this financial betrayal.
Unauthorized Accounts and Credit Report Fraud
We all know that it is normal to have a bank account. However, the situation was different in Bank of America. Here, employees opened credit card accounts for consumers without their knowledge. They did this to pursue illegal sales-based incentives, at least until 2012. Likewise, they got access to credit reports without consent to finish these unapproved applications. Thus, clients confronted uncalled-for charges from the bank. They also had negative effects on their credit. Moreover, they had to address the issue of correcting errors made as a result of the bank’s unethical practices.
A History of Deception and Enforcement Actions
Looking back, we can see that the bank has faced enforcement actions in the past for engaging in unlawful consumer-targeting tactics. In 2014, the Purchaser Monetary Security Agency (CFPB) requested the bank repay victims $727 million for unlawful Visa rehearsals. According to the studies, the Consumer Financial Protection Bureau (CFPB) fined Bank of America $10 million for improperly conducting garnishments. The Office of the Comptroller of the Currency (OCC) was fined $225 million for mishandling state unemployment benefits during the COVID-19 pandemic.
Massive Penalties and Restitution Fund
As of 31 March 2023, Bank of America was considered as the second-largest bank in the United States. It was assumed that it had $2.4 trillion in assets and $1.9 trillion in domestic deposits. Sadly, it was reported that it has faced another crackdown. The CFPB instructed the bank to compensate customers with over $100 million for unethical practices. These consisted of:
- Charging multiple insufficient funds fees.
- Withholding credit card rewards.
- Opening unauthorized accounts.
Are you anxious to know what happened next? The OCC found the bank guilty of imposing excessive fees. This in turn resulted in penalties of $90 million to the CFPB and $60 million to the OCC.
Betraying Customer Trust
CFPB Chief Rohit Chopra criticized Bank of America for unfairly withholding rewards, charging multiple fees on transactions, and opening unauthorized accounts, damaging customer trust. He further claimed that the bank is serving 68 million individuals and businesses. Although, it has significant assets but failed to uphold ethical standards.
To rectify the harm caused, the bank must stop opening unauthorized accounts. Furthermore, it should disclose credit card reward limitations, and refund around $80.4 million to customers for illegal fees. The bank must also compensate those affected by unauthorized accounts and withheld rewards.
Ongoing Legal Battle
A lawsuit has been allowed to proceed, claiming that the bank misled customers by ending an overdraft fee relief program during the pandemic. Customers received a favorable ruling from Judge Yvonne Gonzalez Rogers. He emphasized the significance of accountability and transparency in financial transactions.
Documenting a Case
You can file a claim for restitution if you were the victim of Bank of America’s deceptive practices. The interaction involves submitting important documentation. You can submit this documentation through the bank’s application, site, mail, or fax. Likewise, you can check your record subtleties and document cutoff times to guarantee ideal accommodation.
Clients and traders connected to Bank of America should be aware that the bank’s case-handling time can vary significantly. It can take nearly 60 days. In some cases, the duration of time varies depending on the complexity of the situation.
Bank of America Lawsuit Settlement
In June 2022, a reexamined protest against Bank of America continued after beginning excusal. It was claimed that the bank deluded clients about expense discounts during the pandemic. Another $8 million was settled with customers who were charged excessive ACH costs due to the bank’s online system. Through this settlement, Bank of America protects clients who have been affected by deceptive activities from incurring additional case fees. Notwithstanding, the bank actually faces continuous fights in court and reputational harm.
Florida Class Action Settlement
Interestingly, Bank of America agreed to pay $500,000 in a separate case to settle a Florida debt collection class action lawsuit. The settlement tended to be a supposed infringement of the Florida Purchaser Assortment Practices Act (FCCPA), which limited calls to between 8 a.m. and, what’s more, 9 p.m. It was also mentioned that Petitioners could get up to $500 under the settlement terms. This settlement received final approval from the court on January 11, 2024.
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Conclusion
Finally, we have concluded that the most important reminders of accountability and openness are the fines and court cases related to the Bank of America litigation. In addition, we now know that clients need to be shielded against dishonest business practices. In a similar vein, banks need to preserve moral principles in order to stay credible and trustworthy.
Furthermore, it is important to remember that financial institutions must put their customers’ welfare first. They also have to continue adhering to regulations and protecting client safety. As a result, everyone benefits from a fair and reliable banking environment.