Bank of America will pay $150 million for secretly opening card accounts in customers’ names without their knowledge or consent. The Government says the bank collected what they called “junk fees” that it was charging customers, as well as its mishandling of customer accounts. Regulators also said Bank of America had imposed improper overdraft fees by double-charging customers over the same transaction. The first charge would be a $35 “insufficient funds” penalty levied against a customer who tried to pay for something by check or automated transaction without having the funds necessary to do so. The transaction would be declined, but if the merchant trying to collect the money resubmitted a request for payment, the money would go through and another $35 charge would hit the customer’s account, this time as an overdraft fee, or it would be denied again, incurring a second “insufficient funds” fee.
The bureau also said it had uncovered some instances of Bank of America employees opening new cards in customers’ names without their knowledge or consent in order to meet sales goals.
JEFFREY NEWMAN IS A WHISTLEBLOWER LAWYER WHO HANDLES SEX AND CFTC WHISTLEBLOWER CASES. HE CAN BE REACHED AT 617-823-317 OR JEFF@JEFFNEWMANLAW.COM
